Zenabis Announces Completion of Over-Subscribed Rights Offering
VANCOUVER, Nov. 28, 2019 /CNW/ – Zenabis Global Inc. (TSX: ZENA) (“Zenabis” or the “Company”) is pleased to announce that it has closed its previously announced rights offering (the “Rights Offering”), which expired at 5:00 p.m. (EST) on November 27, 2019. The Rights Offering was over-subscribed and will result in the issuance of the maximum of 139,086,624 common shares of the Company (“Common Shares”) at a price of $0.15 per Common Share for gross proceeds of approximately $20.8 million.
Zenabis is working with its transfer agent to calculate the amounts exercised under the basic subscription privilege and the additional subscription privilege in connection with the Rights Offering and will provide further details, including information required by National Instrument 45-106 – Prospectus Exemptions, once available.
Zenabis is grateful for the support shown by its shareholders in this over-subscribed rights offering by both the public market and insiders. To see an over-subscribed rights offering is a strong vote of confidence from the market.
Andrew Grieve, Chief Executive Officer of 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; Delta, Aldergrove, Pitt Meadows and Langley, British Columbia; and Stellarton, Nova Scotia. Zenabis currently has 57,000 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 have a licensed annual production capacity of 143,200 kg of dried cannabis by the second quarter of 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, and the True Büch brand name is used for Zenabis’ kombucha products.