Zenabis Global Inc. (TSX:ZENA) ("Zenabis" or the "Company") today announced that it has established an at-the-market equity program (the "ATM Program") that allows the Company to issue up to C$15,000,000 of common shares in the capital of the Company (the "Common Shares") from treasury to the public from time to time, at the Company's discretion. Any Common Shares sold through the ATM Program will be sold through the Toronto Stock Exchange (the "TSX") or any other marketplace on which the Common Shares are listed, quoted or otherwise traded, at the prevailing market price at the time of sale.
Distributions of the Common Shares through the ATM Program will be made pursuant to the terms of an equity distribution agreement dated February 9, 2021 between the Company and Echelon Wealth Partners Inc. (the "Agent").
The volume and timing of distributions under the ATM Program, if any, will be determined in the Company's sole discretion. The ATM Program will be effective until the earlier of the issuance and sale of all of the Common Shares issuable pursuant to the ATM Program and May 10, 2021, unless terminated prior to such date by the Company or the Agent. As Common Shares sold in the ATM Program will be issued and sold at the prevailing market price at the time of the sale, prices may vary among purchasers during the period of the distribution. The Company expects to use the net proceeds from the ATM Program for general corporate purposes and working capital needs.
The offering under the ATM Program will be made pursuant to a prospectus supplement dated February 9, 2021 (the "Prospectus Supplement") to the Company's amended and restated final base shelf prospectus dated December 9, 2020 filed with the securities commissions in each of the provinces of Canada except Quebec and the Company's final base shelf prospectus dated December 9, 2020 filed with the Autorite des marches financiers in Quebec (the "Base Shelf Prospectus"). The Prospectus Supplement and the Base Shelf Prospectus are available on the SEDAR website maintained by the Canadian Securities Administrators at www.sedar.com.
Alternatively, the Agent will send copies of the Prospectus Supplement and the Base Shelf Prospectus, as applicable, upon request to Echelon Wealth Partners Inc., 1 Adelaide St. East, Suite 2100, Toronto, ON M5C 2V9, or by telephone at (647) 484-8285, or by email at ecm@echelonpartners.com.
No securities regulatory authority has either approved or disapproved of the contents of this press release. This press release is for information purposes only and does not constitute an offer to sell or the solicitation of an offer to buy the Common Shares, nor shall there be any sale of these securities in any state or jurisdiction in which such offer, solicitation or sale would be unlawful prior to registration or qualification under the securities laws of any such state or jurisdiction.