Adds 255,000 square feet of indoor licensed cannabis facility
VANCOUVER, March 4, 2019 /CNW/ - Zenabis Global Inc. ("Zenabis") (TSXV: ZENA) today announced that it has been approved to cultivate and grow cannabis at its 255,000 square foot facility in Stellarton, Nova Scotia. This represents the third Zenabis facility in Canada licensed to grow cannabis, adding design capacity of 18,500 kilograms of dried cannabis per year.
The Stellarton facility features a highly advanced production environment that supports both growing and finished product operations, as well as new product development. The facility also includes areas for commercial-scale oil extractions, pharmaceutical grade manufacturing, and both plant-based and analytical R&D. Located on a 12.5-acre land parcel, the Stellarton site allows for further expansion in the future.
"This is an important milestone for our company. Together with our progress in securing supply agreements with governments and private vendors, this milestone further positions Zenabis to be a significant provider of cannabis to Canadian consumers," said Andrew Grieve, Chief Executive Officer of Zenabis. "Our Stellarton facility, just like our Atholville, New Brunswick facility, will be one of the largest indoor facilities for cannabis cultivation in the country. We are very excited to increase our growing capacity in Eastern Canada. We are also incredibly grateful to the community for their support, and we look forward to significantly increasing local employment. Together with our licensed facility in Delta, BC and the conversion to cannabis of our 48-acre greenhouse in Langley, BC, we are building a portfolio of cultivation, extraction, and processing assets across Canada to supply a diverse range of products to consumers."
Regarding production costs related to cannabis cultivation, the historical average cost per gram at Atholville has been $1.10 per gram. The forecasted cost per gram at Langley is $0.75 per gram. The expectation is that the company will be able to take efficiency measures that enable the Langley cost and bring them over to operations in Atholville and Stellarton.
In addition, as of February 7th 2019 Zenabis is cGMP (Current Good Manufacturing Practices) certified (21 CFR Part 210 & 211), as recognized by SGS Systems and Services Certification. SGS is the world's leading inspection, verification, testing and certification company.
The significance of the cGMP designation from SGS is that it establishes that Zenabis is operating to US FDA (Food & Drug Administration) standards as detailed in Title 21 CFR (Code of Federal Regulations) Chapter 210 & 211. Title 21 governs food and drugs within the United States for the FDA.
Zenabis has updated the information presentation which can be found here: https://www.zenabis.com/docs/zenabis-presentation.pdf
Note: Neither 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.
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 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 recreational 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 government and third-party retailers/distributors in 9 Provinces; British Columbia, Alberta, Saskatchewan, Manitoba, Quebec, New Brunswick, Nova Scotia, Prince Edward Island, and the Yukon Territory. In addition, on February 4, 2019, Zenabis announced an agreement with Shoppers Drug Mart, adding a major new retail channel to serve medical patients across Canada.
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 design capacity of our Stellarton facility; and 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.
SOURCE Zenabis Global Inc.