Tantalus Labs appears to be inching ever closer to a go-public transaction, announcing this afternoon to the public that it has entered a definitive agreement with Zenabis Global (TSX: ZENA) for contract growing. The agreement, which was mum on details, will see the private licensed producer contract certain growing processes out to that of Zenabis.
The agreement is said to be for an initial two year term, and will result in Zenabis growing “thousands of kilograms” for Tantalus over that time period. The few terms of the agreement provided identify that Tantalus will ship cuttings to Zenabis’ Langley, BC facility for cultivation. Once the growth of the plant is complete, the product will then be shipped back to Tantalus’ facility for the purpose of cold cure drying, processing, and final distribution.
The contractual growing between Zenabis and Tantalus is said to allow the private firm to enter additional markets across Canada.
No financial data was released in connection with the definitive agreement. It is not known when the first clones will be shipped to Zenabis Langley for cultivation.
The news of Zenabis performing contractual growing operations follows yesterdays news that the firm is effectively facing oversupply conditions at its BC facilities. The signing of the definitive agreement will enable the low cost producer to continue to scale its operations, while maintaining a consistent and known buyer for its product.
Zenabis Global closed today’s session at a price of $0.50 on the TSX, down 12.28%.
Information for this briefing was found via Sedar, Tantalus Labs and Zenabis Global. The author has no securities or affiliations related to this organization. Not a recommendation to buy or sell. Always do additional research and consult a professional before purchasing a security. The author holds no licenses.
