Zenabis – through its subsidiary Bevo – has
completed the acquisition of Topgro, with 10.4 acres of greenhouse
on 50 acres of land
VANCOUVER,
Jan. 23, 2019
/CNW/ - Zenabis Global Inc. ("Zenabis") (TSXV: ZENA) is
pleased to announce that on January 22,
2019, Zenabis, through its subsidiary Bevo Farms Ltd.
("Bevo"), completed the acquisition of Topgro Holdings Ltd.
("Topgro") for consideration of $12
million (the "Topgro Acquisition").
Purchase Price Breakdown
Topgro acquisition
price
|
$12,000,000
|
Working capital
adjustment
|
$120,678
|
Deposits and fees
paid to date
|
($28,000)
|
Debt repaid for
Topgro
|
$2,691,82.17
|
Net Cash Purchase Price
|
$9,401,095.83
|
The Topgro Acquisition includes 10.4 acres of greenhouse
on 50 acres of land in Aldergrove,
British Columbia, which Zenabis intends to use for vegetable
and floral propagation. This will ensure continuity for existing
Bevo propagation customers while the first ~10 acres (435,600 sq.
ft.) of the Zenabis Langley facility is converted for cannabis
cultivation.
To fund the acquisition, and as previously released on
January 21, 2019, Zenabis, through
its subsidiary Bevo, entered into a credit agreement for an
aggregate of $51,000,000 in credit
facilities (the "Facilities"). On January
22, 2019, $33.7 million was
drawn on the Facilities for the purpose of refinancing existing
debt and acquiring Topgro. $13
million of the Facilities remain available for the
conversion of Zenabis Langley and Topro propagation
conversion.
"The acquisition of Topgro solidifies Zenabis' commitment
to our existing propagation customers and enables us to immediately
commence conversion of the Langley
facility for the purposes of cannabis production," said
Andrew Grieve, CEO of Zenabis. "We
are excited to move forward with our plans for greenhouse
cultivation in Langley, which is a
key aspect of our growth strategy."
Zenabis – Key Corporate Milestones
- On September 17, 2018,
Zenabis submitted its application package to license the
Langley greenhouse for cannabis
production, which is currently under active review.
- In October 2018, Zenabis
became a founding partner of the Centre for Medicinal Cannabis
("CMC"), a UK based non-profit organization advocating, educating
and lobbying for the implementation of a fair, responsible, and
evidence-based medicinal cannabis regime within the National Health
System in the United
Kingdom.
- Since October 2018, five
additional flower rooms and 19 total rooms have been approved by
Health Canada for cannabis activities and are in operation; we have
also submitted three more flower rooms to Health Canada for
approval
- On December 22, 2018,
Zenabis submitted its cultivation license application for its
Stellarton facility, which is
currently under active review.
- On January 9, 2019, Bevo
Agro Inc. and Sun Pharm completed
the reverse takeover contemplated on October, 4, 2018, to become
Zenabis Global Inc.
- On January 21, 2019,
Zenabis entered into a credit agreement with the Bank of
Montreal for a $51,000,000 credit facility.
- As of January 23, 2019,
Zenabis has distribution relationships with government and
third-party retailers/distributors in New
Brunswick, Nova Scotia,
British Columbia, Saskatchewan, Manitoba, Prince
Edward Island, and the Yukon
Territory.
About Zenabis
Zenabis is a significant licensed cannabis cultivator of
medical and recreational cannabis, and employs staff
coast-to-coast, across facilities in Atholville, New Brunswick; Delta and Langley,
B.C.; and Stellarton, Nova
Scotia. In addition to gaining technologically advanced
knowledge of plant propagation, the recent addition of state of the
art greenhouses in Langley
provides Zenabis with 3.5 million square feet of facility space
that can, upon full conversion, be dedicated to cannabis
production.
If all facility space is fully built out and dedicated to
production, Zenabis will own, and have access to, 660,000 square
feet of high quality indoor cannabis production space, as well as
2.1 million square feet of greenhouse space at its Langley facility (an additional 700,000 square
feet of greenhouse space will be used to continue the existing
propagation business, to be converted at such a time that is
beneficial to the strategic position of the company), strategically
positioned on Canada's coasts.
These facilities, if fully converted for cannabis production, would
have the design capacity to yield 479,700 kg of dried cannabis
annually, for both national and international market distribution.
The Zenabis brand name is used among the medical space,
while Namaste is used to service the recreational
market.
The management team at Zenabis has significant experience
in finance, agriculture, technology, pharmaceutical sales, consumer
packaged goods, international distribution and brand marketing.
Leadership is backed by the expertise of a Chief Growing Officer, a
Chief Science Officer and Chief Medical Officer. As evidenced by
letters of intent with strategic partners, and purchase orders with
governments and distribution partners, Zenabis has been proven as a
trusted and innovative cannabis front-runner.
This news release contains statements that may
constitute "forward-looking information" within the meaning of
applicable Canadian securities legislation. Forward-looking
information may include, among others, statements regarding the
future plans, costs, objectives or performance of Zenabis, or the
assumptions underlying any of the foregoing. In this news release,
words such as "may", "would", "could", "will", "likely", "believe",
"expect", "anticipate", "intend", "plan", "estimate" and similar
words and the negative form thereof are used to identify
forward-looking statements. In this news release, forward-looking
statements relate, among other things, to: the proposed acquisition
of Topgro; conversion, expansion and optimization of Zenabis'
facilities;and advances under and proposed use of funds from the
Facilities. Forward-looking statements should not be read as
guarantees of future performance or results, and will not
necessarily be accurate indications of whether, or the times at or
by which, such future performance will be achieved. No assurance
can be given that any events anticipated by the forward-looking
information will transpire or occur. Forward-looking information is
based on information available at the time and/or management's
good-faith belief with respect to future events and are subject to
known or unknown risks, uncertainties, assumptions and other
unpredictable factors, many of which are beyond Zenabis' control.
These risks, uncertainties and assumptions include, but are not
limited to, those described Zenabis Management Information Circular
dated November 23, 2018, a copy of
which is available on SEDAR at www.sedar.com, and could cause
actual events or results to differ materially from those projected
in any forward-looking statements. Furthermore, any forward-looking
information with respect to available space for cannabis production
is subject to the qualification that management of Zenabis may
decide not to use all available space for cannabis production, and
the assumptions that any construction or conversion would not be
cost prohibitive, required permits will be obtained and the labour,
materials and equipment necessary to complete such construction or
conversion will be available. Accordingly, readers should not place
undue reliance on the forward-looking statements and information
contained in this news release. Zenabis does not intend, nor
undertake any obligation, to update or revise any forward-looking
information contained in this news release to reflect subsequent
information, events or circumstances or otherwise, except if
required by applicable laws.
For more information, visit:
https://www.zenabis.com
SOURCE Zenabis Global Inc.