Zenabis Acquires 51% Stake in A Canadian Kombucha Maker Zenabis has completed the acquisition of 51% of Hillsboro Corp Inc., a Canadian cultured tea beverage company known for its True Buch Kombucha, adding a new product line
Vancouver, British Columbia – January 29, 2019 – Zenabis Global Inc. (“Zenabis”) (TSXV: ZENA) is pleased to announce that Zenabis has completed the acquisition of 51% of Hilllsboro Corp Inc. (“True Buch”).
True Buch is a kombucha company with expertise in the creation of cultured tea beverages. True Buch cultured tea beverages are raw, unpasteurized, gluten free and non-GMO, with over 11 distinct flavours. Zenabis and True Buch intend to draw upon each other’s expertise to infuse cannabis into True Buch beverages when permitted under applicable laws and regulations, creating a cultured tea beverage CBD or THC product.
Zenabis has acquired 51% of True Buch in consideration of the issuance to the True Buch shareholders of 455,947 common shares of Zenabis. In addition to this closing payment, the True Buch shareholders are entitled to cash earn-out payments based on the future financial results of True Buch exceeding the forecast on which the closing payment was based.
Zenabis has the option, on or after the second anniversary of the date of the agreement, to purchase the remaining 49% of the equity in True Buch at eight times the EBITDA for the preceding 12 months payable in cash (the “Option”).
“The strategic acquisition of True Buch marks a significant milestone for both companies” said Andrew Grieve, CEO of Zenabis. “We are excited to enter into this business arrangement with True Buch for several reasons, with the first among these the opportunity to leverage the expert management and operational expertise being contributed by each of our entrepreneurial teams,” said Grieve. “Zenabis is moving rapidly to augment our existing recreational and medical cannabis product lines with the creation of a new consumer product portfolio, in anticipation of upcoming changes to regulations around the sale of cannabis-infused edibles.”
“We are extremely excited to partner with Zenabis and to work with their successful management team to further enhance their innovation, while maintaining great quality in the national and global cannabis infused beverage space,” said Conrad Ferrel, CEO of True Buch. “Our team looks forward to working with Zenabis on expanding the reach of our already great branded kombucha products into new markets, as well as developing a new line of innovative products for their growing customer base.”
About Zenabis
- On January 8, 2019, Bevo Agro Inc. and Sun Pharm competed the reverse takeover announced on October 4, 2018, to become Zenabis Global Inc.
- On January 21, 2019, Zenabis entered into a credit agreement with a major Canadian chartered bank for a $51,000,000 credit facility.
- As of January 28, 2019, 70% of the Zenabis common shares have been contributed to the Pooling Agreement announced December 21, 2018, including 9 of the top 12 shareholders.
- As of January 28, 2019, Zenabis has distribution relationships with government and third- party retailers/distributors in New Brunswick, Price Edward Island and the Yukon Territory.