VANCOUVER, BC, Oct. 30, 2020 /CNW/ - Zenabis Global Inc.
(TSX: ZENA) ("Zenabis" or the "Company") is
pleased to announce that it has entered into an agreement
(the "Note Amending Agreement") with the holders (the
"Noteholders") of the subordinated secured convertible notes
originally issued by Zenabis Investments Ltd. on October 17, 2018, as amended on August 21, 2019, January
31, 2020 and June 1, 2020
other than Agentis Capital (each, a "Note" and collectively,
the "Notes"). The Note Amending Agreement provides for the
conversion of 100% of the outstanding principal amount and the
accrued interest on each Note into common shares of Zenabis
("Common Shares") at a price of $0.04794 per Common Share
(the "Conversion") resulting in the issuance of an
aggregate 32,208,806 Common Shares to the Noteholders.
Additionally, the Note Amending Agreement provides for the issuance
of an aggregate 16,104,403 warrants ("Warrants") to the
Noteholders. Each Warrant is exercisable into an additional Common
Share at a price of $0.06768 for a
period of five years from the date of issue, subject to the
Company's right to accelerate the expiry date of the Warrants to a
date that is not less than 15 days following delivery of written
notice from the Company if the trading price of the Common Shares
equals or exceeds $0.1356 for a
period of 10 consecutive trading days on the Toronto Stock Exchange
(the "TSX").
The TSX has conditionally approved the Conversion and the
listing of the additional Commons Shares issuable pursuant to the
Conversion. Listing of these securities is subject to the Company
fulfilling standard TSX listing requirements.
About Zenabis
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 and Zenabis Langley
facilities to join Zenabis Atholville in steady state production in
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. This forward-looking information
includes, among other statements, statements regarding the closing
of the transactions contemplated by the Note Amending Agreements;
Zenabis' issuance of 32,208,806 Common Shares pursuant to the
Conversion; Zenabis' issuance of an aggregate 16,104,403 warrants
to the Noteholders pursuant to the Note Amending Agreement and 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. 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 annual information form dated
March 30, 2020, 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.