VANCOUVER, March 21, 2019 /CNW/ - Zenabis Global Inc. ("Zenabis") (TSXV: ZENA) today announced a significant expansion of its supply opportunity through its entrance into the European pharmaceutical cannabis market. Zenabis has entered into a Letter of Intent ("LOI") towards a definitive supply arrangement with Farmako GmbH ("Farmako"), a research-based pharmaceutical company headquartered in Frankfurt, Germany.
Pursuant to the LOI, Farmako has committed to an initial purchase of CBD isolate. Farmako and Zenabis will each pursue all relevant regulatory permits and licenses in order to complete the initial transaction. The Letter of Intent also contemplates an expansion of the supply arrangement to include other Zenabis products as permitted under applicable laws.
"We are thrilled to enter the European market alongside such an innovative and ambitious industry leader as Farmako," said Andrew Grieve, Chief Executive Officer of Zenabis. "The market for pharmaceutical cannabis in Europe is estimated to reach €55 billion by 2028, and this strategic relationship helps position our company to seize the opportunity this represents. Farmako's significant growth ambitions align with our own. With a shared commitment to product innovation and R&D, we look forward to leveraging this relationship to expand our opportunities in the future."
Farmako founder and Chief Executive Officer, Niklas Kouparanis, said "Farmako has the explicit goal to be the gateway to Europe for pharmaceutical cannabis. We are delighted that Zenabis and Farmako are beginning to cooperate, and that the first shipment of CBD isolate was initiated today. We are pursuing operations in every market that provides the necessary legal basis, and we believe that Zenabis with its expanding high-capacity growing facilities will be of significant benefit to the pursuit of our objectives."
With an overall population of over 740 million, Europe will be the largest pharmaceutical cannabis market worldwide. The two largest European economies, Germany and the United Kingdom, passed legislation allowing the prescription of pharmaceutical cannabis in March 2017 and November 2018 respectively.
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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 9 provinces and territories (British Columbia, Alberta, Saskatchewan, Manitoba, Quebec, New Brunswick, Nova Scotia, Prince Edward Island and the Yukon Territory).
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 obtaining the required permits to complete the initial transaction and future transactions; entering into a definitive agreement; expanding the supply arrangement to include other products; 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. 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.
For further information: Media Relations: [email protected], 1-844-523-8679; Investor Relations: Shobana Thaya, Zenabis Global Inc., [email protected], 1-844-523-8679; Andrew Grieve, Chief Executive Officer, 1-855-936-2247