/NOT FOR DISTRIBUTION TO UNITED STATES NEWSWIRE SERVICES OR FOR
DISSEMINATION IN THE UNITED
STATES/
VANCOUVER, April 10, 2019 /CNW/ - Zenabis Global Inc.
(TSXV:ZENA) ("Zenabis" or
the "Company") is pleased to announce the
appointment of Michael Smyth as its
new Chief Financial Officer, effective May
14, 2019. The Company also announces that it has now
filed a final short form base shelf prospectus with the securities
commissions in each of the provinces of Canada, except Québec,
following the filing of its preliminary base shelf prospectus as
announced in news on March 18, 2019.
Andrew Grieve, Chief Executive
Officer of Zenabis, stated, "I am very pleased to welcome
Mike Smyth to our team as he brings
a strong background in corporate finance, treasury, finance
administration and business strategy – key skillsets that will
contribute to our goal of becoming a major cultivator and
distributer in the global cannabis industry."
Monty Sikka, Chairman of Zenabis,
stated, "As Chairman and a significant founding shareholder of
Zenabis, I am extremely pleased with the progress that the Company
is making on all fronts and the highly talented team that is now in
place to achieve our long-term growth objectives. I am
excited about what the future holds for the company, as are all of
the founders, and we are committed to seeing the Company
succeed."
New CFO Background
Mr. Smyth comes to Zenabis with extensive experience in senior
management positions including as Chief Financial Officer of
numerous public and private companies. He brings to Zenabis strong
corporate finance, treasury, finance administration and business
strategy experience. Most recently, Mr. Smyth provided
management advisory services to various companies including as
interim CFO at a BC greenhouse grower, where he initiated a
cannabis growing relationship with a respected Canadian cannabis
company. Previously, he reported to the Chief Executive
Officer of global fund manager Lionhart Canada Limited in
Toronto. In his career, Mr. Smyth has worked as Treasurer for
Bell Canada in Montreal and played a key role on the
financial risk advisory team at KPMG.
Mr. Smyth's appointment will be effective on May 14, 2019, and he will take over from current
CFO, John Hoekstra, who will be
returning to his position as Bevo Farms Ltd.'s ("Bevo")
Chief Financial Officer at that time. Mr. Hoekstra will
continue to lead financial reporting and compliance for Bevo as
cannabis cultivation is added to Bevo's existing suite of
propagation and floral products.
Mr. Hoekstra, a significant shareholder of Zenabis, stated, "I
am excited to continue working with the Zenabis team and in
particular with Mike in his new role."
Filing of Final Base Shelf Prospectus
The Company has filed a final short form base shelf prospectus
(the "Shelf Prospectus") with the securities commissions in
each of the provinces of Canada, except Québec. The Shelf
Prospectus allows the Company to offer up to $100,000,000 of common shares, preferred shares,
debt securities, warrants and units, or any combination thereof,
from time to time during the 25-month period that the Shelf
Prospectus is effective. The Company filed this Shelf
Prospectus in order to maintain financial strength and flexibility
going forward. The specific terms of any future offering of
securities, including the use of proceeds from any offering, will
be established in a prospectus supplement to the Shelf Prospectus,
which supplement will be filed with the applicable securities
regulatory authorities. The Company has filed the Shelf Prospectus
in order to maintain financial strength and flexibility as it
expands its cannabis production profile.
A copy of the Shelf Prospectus can be found under the Company's
profile on SEDAR at www.sedar.com. Copies of the Shelf
Prospectus may also be obtained by contacting the Chief
Administrative Officer of the Company at Suite 3100, 666 Burrard
Street, Vancouver, British
Columbia V6C 2X8.
Pooling Agreement Update
In conjunction with the filing of the (preliminary) short form
base shelf prospectus, Zenabis filed a copy of the pooling
agreement previously announced and described in press releases
dated December 21, 2018; January 21, 2019; and February 4, 2019 (the "Pooling
Agreement"). A total of 134,504,417 common shares,
representing approximately 71% of the issued and outstanding common
shares have been deposited under the Pooling Agreement, with 3% of
such shares having been released (1% per month) to date. A
further 7.5% of such common shares are scheduled to be released
every month for the coming 6 months.
In addition, the Pooling Agreement permits the depositing
shareholders to withdraw shares from the Pooling Agreement for the
purpose of either pledging such common shares as security for loans
to the depositing shareholders, the proceeds of which are to be
loaned by them to Zenabis, or entering into securities lending
arrangements at the request of, and to support, Zenabis'
financings. Founding shareholders have withdrawn 4,968,644
common shares for the purpose of supporting the first $15 million tranche of Zenabis' privately-placed
convertible debentures (see press release dated March 27, 2019), with such shares having been
loaned to the purchasers of such debentures.
Neither the 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.
About Zenabis
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
approximately 479,700 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 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: completion of any
offering of securities under the Shelf Prospectus, the use of the
proceeds thereof, and the design capacity, conversion, expansion
and optimization of our 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.
For more information, visit: https://www.zenabis.com.
SOURCE Zenabis Global Inc.