ZENA Website NR - Mar 23/20 Zenabis Closes on $7 Million in Additional Debt Financing
Vancouver, British Columbia – March 23, 2020 – Zenabis Global Inc. (TSX:ZENA) (“Zenabis” or the “Company”) is pleased to announce that it has signed definitive documentation and closed on $7,000,000 (the “New Senior Debt”) in new senior secured debt financing (the “Financing”) from a syndicate of lenders (collectively, the “Senior Lenders”). The Financing has been effected by way of amending and restating the amended and restated debenture representing senior secured debt in the principal amount of $50,000,000 provided by the Senior Lenders (the “Original Senior Debt”, and together with the New Senior Debt, the “Senior Debt”), such that the amended and restated debenture (the “Amended and Restated Debenture”) now represents $57,000,000 in senior secured debt.
The New Senior Debt will bear interest at a rate of 14% per annum, calculated and payable monthly. The Senior Debt will have a maturity date of July 20, 2020 and will automatically renew for an additional four (4) month period under certain circumstances. The Company will have the right to prepay any principal amount of the Senior Debt so long as it pays the Senior Lenders not less than four (4) months of accrued interest on the New Senior Debt.
In connection with the New Senior Debt, the Company has paid certain customary fees, including a structuring fee to the Senior Lenders in an amount equal to five percent of the New Senior Debt.
About Zenabis
Zenabis is a significant Canadian licensed cannabis cultivator of medical and recreational cannabis, and a propagator and cultivator of floral and vegetable products. Zenabis employs staff coast-to-coast, across facilities in Atholville, New Brunswick; Delta, Aldergrove, Pitt Meadows and Langley, British Columbia; and Stellarton, Nova Scotia. Zenabis currently has 96,400 kg of licensed cannabis cultivation space across four licensed facilities. Zenabis has 3.5 million square feet of total facility space dedicated to a mix of cannabis production and cultivation and its propagation and floral business.
The Zenabis brand name is used in the cannabis medical market, the Namaste, Blazery and Re-Up brand names are used in the cannabis adult-use recreational market, and the True Bch brand name is used for Zenabis’ kombucha products.
Forward Looking Information
This news release contains statements that may constitute “forward-looking information” within the meaning of applicable Canadian securities legislation. Forward-looking information may include, among others, statements regarding the future plans, costs, objectives or performance of Zenabis, or the assumptions underlying any of the foregoing. In this news release, words such as “may”, “would”, “could”, “will”, “likely”, “believe”, “expect”, “anticipate”, “intend”, “plan”, “estimate” and similar words and the negative form thereof are used to identify forward-looking statements. Forward-looking statements should not be read as guarantees of future performance or results, and will not necessarily be accurate indications of whether, or the times at or by which, such future performance will be achieved. No assurance can be given that any events anticipated by the forward-looking information will transpire or occur. Forward-looking information is based on information available at the time and/or management’s good-faith belief with respect to future events and are subject to known or unknown risks, uncertainties, assumptions and other unpredictable factors, many of which are beyond Zenabis’ control. These risks, uncertainties and assumptions include, but are not limited to, those described in the shelf prospectus dated April 9, 2019, a copy of which is available on SEDAR at www.sedar.com and could cause actual events or results to differ materially from those projected in any forward-looking statements. Furthermore, any forward-looking information with respect to available space for cannabis production is subject to the qualification that management of Zenabis may decide not to use all available space for cannabis production, and the assumptions that any construction or conversion would not be cost prohibitive, required permits will be obtained and the labour, materials and equipment necessary to complete such construction or conversion will be available. Accordingly, readers should not place undue reliance on the forward-looking statements and information contained in this news release. Zenabis does not intend, nor undertake any obligation, to update or revise any forward-looking information contained in this news release to reflect subsequent information, events or circumstances or otherwise, except if required by applicable laws.
For more information, visit: https://www.zenabis.com.
Media Relations
Email: media@zenabis.com
Phone: 1-844-523-8679
Investor Relations
E-mail: invest@zenabis.com
Phone: 1-844-523-8679