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Zenabis Global Inc. T.ZENA

We are a diverse, passionate team of doctors, scientists, researchers, growers, educators, and advocates who came together with the goal of increasing access to safe, high quality cannabis for medical patients and recreational consumers. Our four facilities are located coast-to-coast across Canada in Delta and Langley, British Columbia; Atholville, New Brunswick; and Stellarton, Nova Scotia. Zenabis currently owns 3.5 million square feet of facility space.


TSX:ZENA - Post by User

Post by MisterPuton Mar 09, 2020 10:49pm
201 Views
Post# 30786532

High Risk Stock BUT High Reward if....

High Risk Stock BUT High Reward if....

 

I've been contemplating taking a considerable position in Zena, as at this price point with a market cap of $25M it's quite attractive; but,  the concern that I have is if Zena has enough runway to see it through.

I figure they need at least 3 Qs to get there, but currently has enough cash probably for no more than 1Q. Also, they have +$60M in debt due this June.

Sales are likely going to be decent; but, not enough to organically grow the cash necessary. Traction in Cannabis 2.0 not before Q2 at the earliest, so don't expect much before Q3. Also, they have been ramping up big time, and with that come the additional operating expenditures which typically pay off 1-2Qs thereafter.

Am I missing something here?

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