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.
About Zenabis
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.
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 1,237,500 common share purchase warrants
("Warrants") to each Noteholder; the issuance of these
securities is subject to TSX approval 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.