VANCOUVER, July 8, 2019 /CNW/ - Zenabis Global Inc. ("Zenabis" or the "Company") (TSX:ZENA) is pleased to announce that it has completed the amendment (the "Amendment") to its $25,000,000 credit facility (the "Facility") initially announced on July 2, 2019. Pursuant to the Amendment, the maturity date of the Facility has been extended from October 17, 2019 to July 5, 2020. 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, Zenabis has issued the lender 6,009,615 common share purchase warrants (50% warrant coverage), each entitling the lender to acquire one common share of the Company (each, a "Common Share") at any time until July 5, 2020 at an exercise price of $2.08 per Common Share. This exercise price was determined based on a 15% premium to the closing price of Zenabis' common share on July 4, 2019 ($1.81).
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.
For more information, visit: https://www.zenabis.com.
SOURCE Zenabis Global Inc.