Zenabis has completed the acquisition of
51% of Hillsboro Corp Inc., a Canadian cultured tea beverage
company known for its True Buch Kombucha, adding a new product
line
VANCOUVER, Jan. 29, 2019 /CNW/ - Zenabis Global Inc.
("Zenabis") (TSXV: ZENA) is pleased to announce that Zenabis has
completed the acquisition of 51% of Hilllsboro Corp Inc. ("True
Buch").
True Buch is a kombucha company with expertise in the creation
of cultured tea beverages. True Buch cultured tea beverages are
raw, unpasteurized, gluten free and non-GMO, with over 11 distinct
flavours. Zenabis and True Buch intend to draw upon each
other's expertise to infuse cannabis into True Buch beverages when
permitted under applicable laws and regulations, creating a
cultured tea beverage CBD or THC product.
Zenabis has acquired 51% of True Buch in consideration of the
issuance to the True Buch shareholders of 455,947 common shares of
Zenabis. In addition to this closing payment, the True Buch
shareholders are entitled to cash earn-out payments based on the
future financial results of True Buch exceeding the forecast on
which the closing payment was based.
Zenabis has the option, on or after the second anniversary of
the date of the agreement, to purchase the remaining 49% of the
equity in True Buch at eight times the EBITDA for the preceding 12
months payable in cash (the "Option").
"The strategic acquisition of True Buch marks a significant
milestone for both companies" said Andrew
Grieve, CEO of Zenabis. "We are excited to enter into this
business arrangement with True Buch for several reasons, with the
first among these the opportunity to leverage the expert management
and operational expertise being contributed by each of our
entrepreneurial teams," said Grieve. "Zenabis is moving
rapidly to augment our existing recreational and medical cannabis
product lines with the creation of a new consumer product
portfolio, in anticipation of upcoming changes to regulations
around the sale of cannabis-infused edibles."
"We are extremely excited to partner with Zenabis and to work
with their successful management team to further enhance their
innovation, while maintaining great quality in the national and
global cannabis infused beverage space," said Conrad Ferrel, CEO of True Buch. "Our team
looks forward to working with Zenabis on expanding the reach of our
already great branded kombucha products into new markets, as well
as developing a new line of innovative products for their growing
customer base."
About Zenabis
- On January 8, 2019, Bevo Agro Inc. and Sun Pharm competed the reverse takeover
announced on October 4, 2018, to
become Zenabis Global Inc.
- On January 21, 2019, Zenabis
entered into a credit agreement with a major Canadian chartered
bank for a $51,000,000 credit
facility.
- As of January 28, 2019, 70% of
the Zenabis common shares have been contributed to the Pooling
Agreement announced December 21,
2018, including 9 of the top 12 shareholders.
- As of January 28, 2019, Zenabis
has distribution relationships with government and third- party
retailers/distributors in New
Brunswick, Price Edward Island and the Yukon Territory.
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 in the medical market, 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.
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: the intention of infusing cannabis into
True Buch beverages when permitted under applicable laws and
regulations to create a cultured tea beverage CBD product; and the
conversion, expansion and optimization of Zenabis'
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.