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.
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 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.