Zenabis Announces Commitment Extension re Revolving Credit Facility
Vancouver, British Columbia – March 1, 2021 – Zenabis Global Inc. (TSX:ZENA) (“Zenabis” or the “Company”) announced today that it has entered into an amending agreement (the “Amending Agreement”) in respect of its January 21, 2021 credit agreement (the “Credit Agreement“) with a Canadian private debt fund (the “Agent“), as agent on behalf of certain lenders, in respect of a committed revolving credit facility in a principal amount of up to $60 million, subject to satisfaction of the applicable conditions precedent and subject to borrowing base requirements based on eligible receivables, inventory and real estate, with a maturity date of January 21, 2022 (the “Facility“).
The details of the Facility are as announced by the Company on January 22, 2021, except for the following changes: (a) the period that the Company has to satisfy the conditions precedent to the initial draw under the Facility has been extended to June 30, 2021 (or such later date as the parties may agree); (b) the requirement for the Company to issue 5,972,873 Zenabis common shares as a partial commitment fee has been replaced by the Company agreeing to increase the cash commitment fee; and (d) the termination fee, which is payable if the Company terminates the Credit Agreement, has been changed from 2% of the total commitment under the Credit Agreement to a descending monthly sliding scale ranging from 4% to 0%. There can be no assurance, however, that Zenabis will be able to satisfy all of the conditions precedent to the initial draw under the Facility and be able to access and draw down all or any amounts under the Facility prior to June 30, 2021 (or such later date as the parties may agree).
Echelon Capital Markets is acting as exclusive financial advisor in the arrangement of this credit facility.
Zenabis is a significant Canadian licensed cultivator of medical and recreational cannabis. Zenabis employs staff coast-to-coast, across facilities in Atholville, New Brunswick; Langley, British Columbia; and Stellarton, Nova Scotia. Zenabis currently has 111,200 kg of licensed cannabis cultivation space across three licensed facilities in Canada, together with its cannabis import, export and processing joint venture, ZenPharm, operating from Birżebbuġa, Malta.
The TSX has not reviewed and does not accept responsibility for the adequacy of the content of the information contained herein. This press release contains certain “forward-looking statements” and “forward-looking information” as defined under applicable Canadian securities laws. Forward-looking statements or forward-looking information involve risks, uncertainties and other factors that could cause actual results, performances, prospects and opportunities to differ materially from those expressed or implied by such forward-looking statements. Forward- looking statements or forward-looking information can be identified by words such as “anticipate,” “intend,” “plan,” “goal,” “project,” “estimate,” “expect,” “believe”, “future,” “likely,” “may,” “should,” “could”, “will” and similar references to future periods. All statements other than statements of historical fact included in this release are forward-looking statements, including, without limitation, statements regarding the ability of Zenabis to drawdown amounts under the Credit Facility. There can be no assurance that such statements will prove to be accurate and actual results and future events could differ materially from those anticipated in such statements or information. Important risks and factors that could cause actual results or events to differ materially from Zenabis’ plans and expectations include the satisfaction of conditions to the lender’s commitment to fund advances under the Credit Agreement and the timing thereof, including timely receipt of all required third party approvals, including TSX approval of the Commitment Shares, the lender’s ability to fund advances under the Credit Facility, actual results of business negotiations, marketing activities, adverse general economic, market or business conditions, regulatory changes, risks relating to the COVID-19 pandemic, governmental responses thereto, measures taken by the Company in respect thereto and the impact thereof on the global economy, capital markets, the cannabis industry and the Company, and other risks and factors detailed herein and from time to time in the filings made by Zenabis with securities regulators and stock exchanges. Any forward-looking statement or information only speaks as of the date on which it was made and, except as may be required by applicable securities laws, Zenabis disclaims any intent or obligation to update any forward-looking statement, whether as a result of new information, future events or otherwise. Although Zenabis believes that the assumptions inherent in the forward-looking statements are reasonable, forward-looking statements are not guarantees of future performance or events, and accordingly, investors should not rely on such statements.
For more information, visit: https://www.zenabis.com.