VANCOUVER, July 2, 2019 /CNW/ – Further to its press
release of February 8, 2019, Zenabis
Global Inc. ("Zenabis" or the "Company") (TSX:ZENA) is pleased to
announce that it has signed a Commitment Letter (the
"Commitment Letter") with the lender for its $25,000,000 credit facility (the
"Facility") to amend and restate the secured debenture
governing the terms thereof (the "Amendment").
Subject to receipt of all required regulatory approvals, the
Amendment will extend the maturity date of the Facility from
October 17, 2019 to the date that is
one year from the date of the closing of the Amendment (the
"Closing Date"). The Closing Date is expected to be on or
around July 5, 2019. The terms
of the Facility, including the interest rate and the financial
covenants, will otherwise remain substantially the same, except
that the prepayment penalty has been substantially reduced.
In connection with the Amendment, subject to receipt of all
required regulatory approvals, Zenabis will issue the lender
$12,500,000 of common share purchase
warrants (50% warrant coverage) entitling the lender to acquire one
common share of the Company (each, a "Common Share") for a
period of one year commencing on the Closing Date at the price that
is a 15% premium to the closing price of the Common Shares on the
TSX on the date before the Closing Date.
Andrew Grieve, Chief Executive
Officer of Zenabis, remarked, "We appreciate the lender's
continuing support as evidenced by its willingness to extend the
credit facility under reasonable terms, including a significant
reduction in the prepayment penalty, which limit dilution as much
as possible. We believe this extension allows us to continue
to invest in our business, rapidly increasing our production and
revenues, leaving us in a preferred position to retire this debt
next year. In addition, we continue to make progress on our
goal of refinancing our existing debt into a single, consolidated
facility."
About Zenabis
Zenabis is a significant Canadian licensed cannabis cultivator
of medical and recreational cannabis, and a propagator and
cultivator of floral and vegetable products. Zenabis employs staff
coast-to-coast, across facilities in Atholville, New Brunswick; Delta, Aldergrove, Pitt
Meadows and Langley, British
Columbia; 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, Pitt
Meadows and Aldergrove
provides Zenabis with 3.5 million square feet of facility space
that can, if fully converted, be dedicated to cannabis
production.
If all facility space at Zenabis Atholville, Zenabis Stellarton,
Zenabis Delta and Zenabis Langley is fully converted 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 cannabis production space at
its Langley facility, with this
production strategically positioned on Canada's coasts. Zenabis expects these
facilities to have an annual design capacity of 131,200 kg of dried
cannabis by the third quarter of 2019. These facilities, if fully
built out and converted for cannabis production, would have an
annual design capacity to yield approximately 478,800 kg of
dried cannabis annually, for both national and international market
distribution. An additional 700,000 square feet of greenhouse space
will be used to continue the existing propagation business and
produce industrial hemp, and can be converted to cannabis
production at such a time that is beneficial to the strategic
position of the Company. The Zenabis brand name is used in the
cannabis medical market, while the Namaste and Blazery brand names
are used in the cannabis adult-use recreational market, and the
True Büch brand name is used for Zenabis' kombucha products.
"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: the receipt of all required
regulatory approvals for the completion of the Amendment (including
the issuance of common share purchase warrants to the lender), the
completion and closing of the Amendment and the projected Closing
Date of the Amendment.. 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 dated
April 9, 2019, 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.