Zenabis Global Inc (TSX: ZENA) has issued an operational update regarding facility licensing and construction, and cannabis production for its several facilities across Canada.
Regarding updates for Zenabis’s operational facilities in Atholville, Stellarton, and Langley. The company produced above its projections for the month of September 2019; however, actual harvest amounts were below the estimates for the months of October, November, and December 2019. For September, the company projected to harvest 1,731 kg of cannabis, but ended up harvesting 2,089 kg. For October the firm projected 3,758 kg, for November 3,881 kg, and for December 4,200 kg – but only harvested actual amounts of 3,586 kg, 3,332 kg, and 3,841 kg respectively. Overall, the company was expecting to harvest a total of 19,420 kg of cannabis for the fiscal year, but came up short with total production of 19,242 kg of dried cannabis at Atholville.
With respect to the company’s Langley facility, the firm experienced its largest monthly harvest in December with 3,841 kg of cannabis being harvested. Overall, the facility produced 19,420 kg of cannabis for the calendar year of 2019.
In terms of construction updates, Zenabis is currently not cash flow positive, and is therefore reviewing the need for analytical testing at its Delta, BC facilities. The Langley facility has been divided into 4 parts, with parts 1 and 2A currently fully operational and licensed. Part 2B is partially complete, but the company did submit an amendment to its license amendment application in December 2019, citing it wants to increase the available square footage by 2,500 square feet for flower space, and 18,000 square feet for operations. The increase in square footage was initially intended for part 2C, but was bumped to be included in part 2B. The remainder of the part 2C phase has seen its progress reduced as the firm looks to focus on its currently operational space.
Elsewhere, the company submitted an application for a sales license for its Stellarton location in October, with plans to use the facility for processing and packaging upon licensing. In addition, the Delta facility has halted its conversion, and the company is determining whether there is a market demand for its laboratory and analytical services.
Lastly, Zenabis introduced a compassionate pricing program for its medical cannabis products as a way to ensure that patients have access to affordable cannabis dried cannabis and cannabis oil. This new pricing program will also serve as a means of competing with the illicit market on pricing.
Zenabis Global is a licensed medical and recreational cannabis cultivator, and is currently trading at $0.14 on the TSX.
Information for this briefing was found via Sedar and Zenabis Global Inc. 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.