Zenabis Global (TSX: ZENA) failed a facility inspection at its Delta, BC location for EU-GMP certification last December. First reported by BNN Bloomberg, it’s been found that Zenabis failed to address any deficiencies within the initial report within a timely manner. As a result, it has failed the EU-GMP certification process for its facility.
In speaking to BNN Bloomberg, CEO Andrew Grieve stated that the decision “would not have had any material impact on revenue,” which is on the basis that the Delta, BC facility would only yield about 100 kilos of dried cannabis product. This statement alone brings into question why, exactly, Zenabis Global ever entertained the idea of producing product for Europe from this facility if no material impact was expected from the corresponding revenues. Rather, it appears that the endeavor was a massive waste of resources in terms of both time and money for the company.
To be fair, Zenabis announced, albeit rather quietly, in August that the firm was relinquishing its pursuit of GMP certification at its Delta facility in favour of moving the facility towards a processing center. Instead, the firm is focused on developing it’s Atholville facility into that of its EU-GMP certified operation. Zenabis expects this facility to be certified in the first half of 2020.
Included within the report outlining Zenabis’ failed inspection, the Maltese government identified that there were 9 major and 20 minor deficiencies at the Delta facility related to receiving EU GMP certification. Additionally, 1 critical deficiency existed in that Zenabis did not have a pharmaceutical quality system installed at the facility. The failure of Zenabis was in relation to follow up with corrected deficiencies. A copy of the report, filed with EudraGMDP, can be found here.
Zenabis Global last traded at $0.18 on the TSX.
Information for this briefing was found via Sedar 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.
As the founder of The Deep Dive, Jay is focused on all aspects of the firm. This includes operations, as well as acting as the primary writer for The Deep Dive’s stock analysis. In addition to The Deep Dive, Jay performs freelance writing for a number of firms and has been published on Stockhouse.com and CannaInvestor Magazine among others.