NOT FOR DISTRIBUTION TO UNITED STATES
NEWSWIRE SERVICES OR FOR DISSEMINATION IN THE UNITED
STATES
Zenabis Global Inc
(TSXV:ZENA)
(“
Zenabis” or the “
Company”)
announces that it has today filed a preliminary prospectus
supplement (the “
Supplement”) to its short form
base shelf prospectus dated April 9, 2019 (the “
Shelf
Prospectus”) in connection with a fully-marketed, “best
efforts” offering of its common shares (the
“
Offering”). The Supplement was filed with
the securities regulatory authorities in each of the provinces of
Canada, except Québec.
The Offering is expected to raise total gross
proceeds of approximately $25.0 million before deducting
commissions and estimated expenses of the Offering. The
Company intends to use the net proceeds of the Offering to fund the
cost of conversion of its facilities to cannabis production and for
working capital.
The Offering is being made through a syndicate
of agents co-led by Eight Capital and GMP Securities L.P. (who will
also act as joint book-runners), and including Canaccord Genuity
Corp., Haywoood Securities Inc. and Laurentian Bank Securities Inc.
(collectively, the “Agents”).
The Company also expects to grant to the Agents
a 30-day over-allotment option to purchase up to an additional 15%
of the number of common shares offered in the Offering. The
Offering is expected to be priced in the context of the market,
with the final terms of the Offering to be determined at the time
of pricing. There can be no assurance as to whether or when the
Offering may be completed, or as to the actual size or terms of the
Offering. The closing of the Offering will be subject to customary
closing conditions, including the listing of the common shares on
the TSX Venture Exchange.
The Supplement and the Shelf Prospectus contain
important detailed information about the Offering. A copy of the
Supplement and the Shelf Prospectus can be found under the
Company’s profile on SEDAR at www.sedar.com.
This news release shall not constitute an offer
to sell or the solicitation of an offer to buy, nor shall there be
any sale of these securities in any province, state or jurisdiction
in which such offer, solicitation or sale would be unlawful prior
to the registration or qualification under the securities laws of
any such province, state or jurisdiction.
Neither the TSX Venture Exchange nor its
Regulation Services Provider (as that term is defined in policies
of the TSX Venture Exchange) accepts responsibility for the
adequacy or accuracy of this release.
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 approximately
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 in the adult-use
recreational market.
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
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: pricing and completion
of the Offering, the use of the proceeds thereof, and the design
capacity, conversion, expansion and optimization of our 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 in the Shelf Prospectus, 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.
Media Relationsmedia@zenabis.com1-844-523-8679
Investor RelationsShobana ThayaZenabis Global
Inc.Invest@zenabis.com1-844-523-8679
Andrew GrieveChief Executive Officer1-844-523-8679
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