Zenabis Global (TSX: ZENA) this morning announced that it has signed a binding term sheet to supply the German medical cannabis market for a period of three years. The trouble however, is that its facilities are still not fully licensed to fulfill such a contract.
The binding term sheet, which has been signed with Farmako, has been signed by Zenabis via ZenPharm, the firms Malta-based joint venture operation. Under the binding term sheet, Zenabis will supply Farmako through ZenPharm with a minimum of 500 kilograms of bulk dried cannabis per year, which will then be distributed through the German market.
Despite this mornings announcement however, ZenPharm is still not fully licensed by the Maltese government for such an arrangement. The subsidiary isn’t expected to receive the necessary licensing to complete such an arrangement until at least the fourth quarter of 2020, thus making this mornings news rather moot, at least in the short term. Upon ZenPharm receiving final EU GMP certification Zenabis will be able to begin the shipment of bulk product, which is anticipated to occur in the fourth quarter of 2020.
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Cannabis oils products are anticipated to follow the bulk dry flower shipments in 2021.
Outside of the German market news, the company also announced that Zenabis Stellarton has received its sales license finally. As a result, the company anticipates moving production of edibles HYTN Beverages, and concentrates to the facility, all of which have been given a timeline of July for production commencement.
Zenabis Global last traded 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.
