Zenabis Global Inc.
It makes Ontario the 10th province/territory in Canada that Zenabis supplies, following deals in British Columbia, Alberta, Saskatchewan, Manitoba, New Brunswick, Nova Scotia, Prince Edward Island, Quebec and the Yukon Territory. Its products are now available to 98% of the Canadian population.
Namaste by Zenabis is a premium recreational brand featuring dried flower and prerolls. Blazery includes a number of high THC prerolls, while the company’s medicinal cannabis is sold under the Zenabis umbrella.
“Adding Ontario to our coast-to-coast distribution network makes Zenabis one of six licensed producers that has distribution to ten or more provinces and territories across Canada,” said Zenabis chief executive Andrew Grieve.
He reiterated his ambition to turn Zenabis into one of Canada’s largest cannabis producers. It has facilities across the country, in Atholville, New Brunswick; Delta, Aldergrove, Pitt Meadows and Langley, British Columbia; and Stellarton, Nova Scotia. If each one is fully built out, they would have the capacity to yield approximately 490,800 kg of dried cannabis annually, making Zenabis one of the world’s largest cannabis producers.
Yet that sort of annual yield is a long way off. In Q2 2019, it cultivated 2,473 kg of dried cannabis flower, which exceeded its forecast by 40%. It also sources cannabis from third-party producers, but it had to reject an order for 554 kg from an unnamed company, as the quality was so poor.
That contributed to net revenue falling short of expectations. It expected net revenue on cannabis sales to hit $10 million to $12 million during the three months to June 30, 2019. However, it only managed to achieve $7.25 million.
Last month it announced $25 million in additional debt financing this week in a bid to complete the expansion of its facilities. It aims to reach production capacity of 143,200 kg on an annualized basis when current expansion plans are completed.
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