/NOT FOR DISTRIBUTION TO UNITED STATES NEWSWIRE SERVICES OR FOR
DISSEMINATION IN THE UNITED
STATES/
VANCOUVER, April 17, 2019 /CNW/ - Zenabis Global Inc.
(TSXV:ZENA) ("Zenabis" or the "Company")
announces today that it has closed its previously announced
fully-marketed, "best efforts" offering (the "Offering") of
12,777,777 units of the Company (each, a "Unit"), which
includes the exercise of the agents' over-allotment option in full,
at a price of $2.25 per Unit, for
aggregate gross proceeds to the Company of approximately
$28.75 million, before deducting
commissions and expenses of the Offering.
Andrew Grieve, Chief Executive
Officer of Zenabis, stated, "We are grateful to both existing and
new shareholders for their support as the completion of this
offering provides us with the financial flexibility needed to
execute on the expansion of our total cultivation capacity to over
131,000 kilograms of cannabis production by early Q3 2019."
Each Unit consists of one common share of the Company (each, a
"Common Share") and one common share purchase warrant (each,
a "Warrant") to purchase a Common Share at a price of
$2.75 for a period of 36 months from
today's date. The Warrants have been approved for listing on
the TSX Venture Exchange ("TSXV"), under the symbol
"ZENA.WT", and trading of the Warrants on the TSXV is expected to
commence on April 22, 2019.
The Company intends to use the net proceeds of the Offering to
fund the cost of conversion of its facilities to cannabis
production and for working capital. The Units were offered
pursuant to a prospectus supplement dated April 12, 2019 (the "Supplement") to the
Company's short form base shelf prospectus dated April 9, 2019 (the "Shelf
Prospectus").
The Offering was made through a syndicate of agents co-led by
Eight Capital and GMP Securities L.P. (who also acted as joint
book-runners), and including Canaccord Genuity Corp., Haywood
Securities Inc. and Laurentian Bank Securities
Inc. (collectively, the "Agents").
This news release shall not constitute an offer to sell or the
solicitation of an offer to buy, nor shall there be any sale of
these securities in any province, state or jurisdiction in which
such offer, solicitation or sale would be unlawful prior to the
registration or qualification under the securities laws of any such
province, state or jurisdiction.
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 479,300 kg of dried
cannabis annually, for both national and international market
distribution. The Zenabis brand name is used in the medical market,
while Namaste is used in 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: the use of the proceeds
of the Offering 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 in the
Shelf Prospectus, 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.