Key approval paves the way for new product and
market opportunities
VANCOUVER, March 18, 2019
/CNW/ - Zenabis Global Inc. ("Zenabis") (TSXV: ZENA) announced
today that it is now licensed to process and sell cannabis oil
products in Canada. The license
enables Zenabis to now sell cannabis oil produced at its
Atholville, New Brunswick
facility, one of the largest indoor cannabis growing facilities in
Canada, where Zenabis was already
processing oil. Zenabis expects to market and sell cannabis oil
products to its medical clients and to adult use consumers through
supply and distribution agreements that Zenabis has in place with
nine Canadian jurisdictions including British Columbia, Alberta, Saskatchewan, Quebec, Nova
Scotia, New Brunswick,
Manitoba, Prince Edward Island, and the Yukon.
Zenabis expects to have its initial cannabis oil products
available for sale in both the medical and adult use markets by
early Q2, 2019, and will be launching additional formats and
formulations throughout the year.
"This approval provides us with the ability to serve new and
existing customers with an expanded range of adult use and medical
products through new and easy to use consumption methods. This
product category is incredibly important for Zenabis, as it
supports our overall growth and product leadership strategy," said
Andrew Grieve, Chief Executive
Officer of Zenabis. "Ingestion of cannabis oil tends to offer a
longer lasting effect than vaping or smoking dried cannabis,
providing medical clients and adult use consumers with a broader
set of options in Zenabis products. We look forward to bringing our
cannabis oil products to market and continuing to innovate and
expand our product offerings. In addition, with this update to our
Atholville processing license, we
now have the capacity to develop a variety of additional
value-added cannabis oil products, and cannabis extract products
consistent with the proposed amendments to the Cannabis
Regulations that allow for greater product diversity."
Cannabis Oil: A Value-Added Product Opportunity
Cannabis oil is a value-added option for both medical clients
and adult use cannabis consumers. Cannabis oil products may be sold
as oral drops or sprays, or in soft gel capsules, providing
consumers a convenient, controlled and discrete dose. Cannabis oil
tends to have longer lasting effects when compared to vaporizing or
smoking dried cannabis. Zenabis cannabis oil products are
manufactured from high-grade plant material using highly engineered
extraction methods to ensure the highest quality of consumer
products. Zenabis values quality first and, as with all Zenabis
products, our cannabis oil is tested by an independent third-party
lab to ensure product safety, consistency and quality.
Zenabis Atholville License Amendment and Construction
Update
Zenabis is pleased to announce that it has received license
amendment approval from Health Canada for three additional flower
rooms at its Zenabis Atholville facility. This represents an
additional 2,100kg of annual production capacity and 10,500 sq. ft.
of incremental licensed operational space. With this amendment, the
combined licensed annual production capacity of Zenabis Atholville,
Zenabis Stellarton, and Zenabis Delta is now 10,200kg.
Construction at Zenabis Atholville remains on budget and on
schedule, with ongoing conversion work expected to add an
additional 25,000kg in annual production capacity that will become
operational in stages over the course of Q2 2019.
Employee Count Surpasses 600
Zenabis' employee count continues to grow in line with its
operational footprint, largely driven by several recent license
approvals from Health Canada, including the standard cultivation
license granted to our facility in Stellarton, NS, and today's announcements on
the approval to process and sell cannabis oil products and the
expansion of our operational space in Atholville, NB. The number of Zenabis'
employees, including contractors and seasonal workers, now exceeds
600, having been fewer than 400 as of December 1st, 2018.
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About Zenabis
Zenabis is a significant licensed cannabis cultivator of medical
and adult use 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 479,300 kg of dried cannabis
annually, for both national and international market distribution.
The Zenabis brand name is used among the medical market, while
Namaste is used to service the adult use market.
The management team at Zenabis has significant experience in
finance, agriculture, technology, pharmaceutical sales, consumer
packaged goods, international distribution and brand marketing.
Zenabis has established distribution relationships with
provincial liquor authorities, wholesalers and licensed retailers
in nine provinces and territories (British Columbia, Alberta, Saskatchewan, Manitoba, Quebec, New
Brunswick, Nova Scotia,
Prince Edward Island and the
Yukon).
Forward Looking Information
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 intention to
produce, market and sell cannabis oil products through the stated
distribution methods on the intended timeline or otherwise, 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 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.