Zenabis Announces Closing of Disposition of Bevo Farms Ltd.
Vancouver, British Columbia – March 11, 2021 – Zenabis Global Inc. (TSX:ZENA) (“Zenabis” or the “Company”) announced today that it has closed the previously announced sale of Bevo Farms Ltd. (“Bevo“), pursuant to the rental rebate, liability contribution and share purchase agreement (the “Agreement“) dated December 31, 2020 between Zenabis and Langley Propagation and Floral Company Ltd. (“Langley“).
As announced on December 31, 2020, the Agreement provided for the sale of all of the shares in Bevo to Langley, as well as the provision of funding for certain liabilities of Zenabis, the retention by Langley of certain existing debt of Bevo, the provision of a guarantee of the existing debt of Bevo by Langley, and reductions to certain rent amounts owed by Zenabis to Bevo. On December 31, 2020, Langley subscribed for shares in the capital of Bevo, resulting in Langley owning, as of and from December 31, 2020, approximately 99% of the issued and outstanding shares of Bevo. The closing today was the sale of the remaining approximately 1% of the issued and outstanding shares of Bevo owned by Zenabis. The cash closing proceeds received by Zenabis upon the closing today was approximately $8.79 million.
In addition, following the closing of the sale of Bevo to Langley, the Company’s outstanding consolidated financial indebtedness has been significantly reduced since, concurrently with the closing of the sale of Bevo, Zenabis has been unconditionally released from its prior guarantee of Bevo’s obligations to Bank of Montreal (“BMO”) under the Bevo credit facility with BMO.
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. 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 closing of the acquisition of Zenabis by HEXO Corp. under the arrangement agreement dated February 16, 2021 between the parties thereto, 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.