Cannabis Shipment Volume Over First Two Months of Third Quarter ~20% Higher Than Cannabis Shipment Volume Over Entire Second Quarter
– Zenabis Global Inc. (TSX: ZENA) (“Zenabis” or the “Company“) today announced that its first shipments to Australia from its Zenabis Atholville facility was completed on August 28, 2020. Zenabis has commenced the supply of packaged cannabis flower under a long-term supply agreement with an Australian distributor.
Import amounts into Australia for the third quarter of 2020 are expected to be in the range of 100 kg, with import permits for comparable amounts already issued for the fourth quarter of 2020. Kevin Coft, Interim Chief Executive Officer of Zenabis, remarked, “We are very proud of our first shipments of packaged, rather than bulk, cannabis outside of Canada, and to add an additional continent from an export partner standpoint.”
Third Quarter Cannabis Volume Update
As of 31 August 2020, Zenabis has shipped ~4,700 kg of cannabis in the first two months of the third quarter of 2020, an ~20% increase over the entire second quarter of 2020, which was itself the highest quarter to date for Zenabis. Daniel Burns, Chair of Zenabis, added, “Through a combination of significant volume increases with provincial counterparties, increased cash-pay bulk agreements in Canada, and increases in volume exported internationally, Zenabis has delivered significant volume growth in cannabis shipment volumes in the third quarter of 2020.” These cannabis shipment volumes remain consistent with prior guidance for net cannabis revenue of $17-21m for the third quarter of 2020.
Zenabis has updated its corporate presentation located at zenabis.com/investor-relations to include recent international counterparty updates, Q2 financial results, and a table of ongoing cash interest payment obligations after taking into account debt repayment, prepayment, and conversions that took place in Q2 2020.
Zenabis is a significant Canadian licensed 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; Aldergrove, Pitt Meadows and Langley, British Columbia; and Stellarton, Nova Scotia. Zenabis currently has 111,200 kg of licensed cannabis cultivation space across four licensed facilities. Zenabis has 3.5 million square feet of total facility space dedicated to a mix of cannabis production and cultivation and its propagation and floral business.
Zenabis expects Zenabis Stellarton, as Zenabis’ centre of excellence for Cannabis 2.0 products, to join Zenabis Atholville and Zenabis Langley in steady state production by the end of 2020. The Zenabis brand name is used in the cannabis medical market, the Namaste, Blazery, and Re-Up brand names are used in the cannabis 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: [4,700 kg] in the first two months of the third quarter of 2020, and are expected to be in the range of 100 kg. 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 as supplemented by a prospectus supplement dated June 19, 2020 and the annual information form dated March 30, 2020, copies of which are 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. Forward-looking statements or information involve known and unknown risks, uncertainties and other factors which may cause the actual results, performance or achievements of the Company to be materially different from any future results, performance or achievements expressed or implied by the forward-looking statements or information contained in this news release. 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.