Zenabis Global (ZENA.V) announced the licensing of Phase 2A of its Zenabis Atholville facility and was rewarded with a 10% stock bump last week.
The facility adds an extra 3,200 kilograms of cannabis cultivation capacity bringing their total capacity from 10,200 kilograms to 13,400 kilograms.
Zenabis enjoyed a 10% boost in stock price on the news, and despite a few days where the company’s fortunes have dipped, they are still hovering around the $1.65 per share mark.
“Since the creation of Zenabis in January of 2019, we have more than doubled our licensed cultivation capacity from approximately 6,000 kg to 13,400 kg, and we have an additional 9,800 kg of cultivation capacity at Zenabis Atholville submitted and awaiting licensing approval. We are currently converting facility space for cultivation and production that will add 108,100 kg of cultivation capacity once licensed,” said Andrew Grieve, CEO of Zenabis.
Purefarma Solutions, one of Heritage’s subsidiaries, will provide toll extraction services and oil extraction to Zenabis in exchange for a supply of dried flower and trim for extraction.
Zenabis Global was formed via an RTO in January 2019 through the combination of propagator, Bevo Agro and Sun Pharm Investments, a large cannabis producer with established medical and recreational brands and distribution.
- Amendment received May 10, 2019 added 3,200 kg of licensed cultivation capacity at its indoor Zenabis Atholville facility;
- This amendment increases licensed operating space from the existing 136,800 square feet at Zenabis Atholville to 174,900 square feet.
The company owns six indoor and greenhouse facilities across Canada, four of which are intended for cannabis cultivation. If all four of those greenhouses were completely built out and converted to cannabis production, they would bring in 479,300 kilograms of dried cannabis per year.
Zenabis Global expects to produce approximately 12,835 kg from May through December of 2019 from its facilities in Atholville and Stellarton.
Zenabis Global Highlights:
- Cultivation output in April, 2019, was 809 kilograms, which represent a 31.3-per-cent outperformance relative to design capacity, or a performance ratio (1) of 31.3 per cent;
- Together with accelerating one harvest versus forecast, cultivation output of 809 kg was 63 per cent greater than forecast output of 495 kg;
- The performance ratio on a by-harvest basis varied from a low of (4.0 per cent) to a high of 56.6 per cent;
- Construction and licensing continue to progress on track at Zenabis Atholville and Zenabis Langley, with annual design capacity forecast to increase to at least 131,300 kg in the third quarter of 2019.
Zenabis will deliver a minimum of 500 kilograms of dried flower and trim to Heritage, and in return Heritage will supply Zenabis with 150 kilograms of CBD or THC extracted distillate by the end of 2019.
Full disclosure: Heritage Cannabis is an Equity.Guru marketing client.