VANCOUVER, BC, Oct. 19, 2020 /CNW/ – Zenabis Global Inc. (TSX: ZENA) (“ Zenabis” or the “Company“) is pleased to announce that it has entered into definitive agreements (the “Note Amending Agreements“) with the holders (the “Noteholders“) of two of the unsecured convertible notes originally issued by Zenabis Investments Ltd. on October 17, 2018, as amended on January 3, 2019(each, a “Note” and collectively, the “Notes“). Such Notes have an aggregate principal amount of $6,400,000 with a prior maturity date of October 17, 2020. The key terms of the Note Amending Agreements include:
- the deferral of the maturity date of the Notes from October 17, 2020 to June 30, 2021 (the “New Maturity Date“); and
- Zenabis’ issuance of 1,237,500 common share purchase warrants (“Warrants“) to each Noteholder. Each Warrant entitles the Noteholder to purchase a common share in the capital of Zenabis at an exercise price of $0.15 for a period of five years from the date of issue.
Additionally, the holder of a third Note with a principal amount of $2,600,000 has delivered an interim waiver (the “Waiver“) of any default under such Note upon its maturity to facilitate ongoing negotiations for the extension or settlement of such Note.
All of the Notes with a maturity date of October 17, 2020 were covered by the Note Amending Agreements or the Waiver.
The Toronto Stock Exchange (the “TSX“) has not approved the issuance of the Warrants and the issuance of these securities is subject to TSX approval.
Zenabis is a significant Canadian licensed cannabis 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; Delta, 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 its Zenabis Atholville, Zenabis Stellarton and Zenabis Langley facilities to be 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.
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