Zenabis provides operational update; appoints Natascha Kiernan to board
Zenabis Global (TSXV:ZENA) provide an update on its recent cannabis production figures, anticipated future harvests, facility construction and licensing status, and medical program update.
Separately, the company named Natascha Kiernan, an experienced international finance and M&A attorney, as a director.
Ms. Kiernan's experience includes working as counsel in the London office of Skadden, Arps, Slate, Meagher & Flom, where she represented Fortune 500 companies, financial institutions and international governments in complex corporate finance and M&A transactions totalling more than $100-billion and spanning six continents.
In a statement, Andrew Grieve, CEO of Zenabis, said cultivation output was very strong in the month of April. “Beyond the harvests in May, aside from variance resulting from ramp-up in rooms, we expect greater consistency in output as a result of a more consistent cultivation approach.”
In addition, Mr. Grieve said licence amendments are being received in a timely manner, and our construction and licencing teams remain on time, or in some cases are ahead of earlier schedules.
Zenabis achieved four harvests at its Zenabis Atholville site, compared with a forecast of three harvests. As a result, the company in April had its highest monthly harvest weight to date of 809 kg, up 63% from forecast output of 495 kg.
For its existing licensed facilities of Zenabis Atholville and Zenabis Stellarton, but excluding Zenabis Delta, the company expects to produce approximately 12,835 kg from May through December 2019.
The 380,000-square-foot Zenabis Atholville indoor facility is currently licensed to produce cannabis from 174,900 square feet with annual design capacity of 12,500 kg.
Zenabis is in the process of constructing and licensing additional flower rooms and support space to expand cultivation capacity in two blocks divided into Phase 2B, consisting of 76,700 square feet, and Phase 2C, consisting of 118,000 square feet.
The company also is converting 10 acres of the first greenhouse property (Site A) following the successful transfer of all floral and propagation business from Site A to Zenabis Aldergrove. In addition, construction at Zenabis Langley is progressing on time.
Site A is divided into six flower zones, which are similar to those in an indoor facility, but much larger in size. Construction of the flower rooms is expected to be completed between June and August. Site A has an annual design capacity of 96,100 kg.