Zenabis Global Inc (OTCMKTS:ZBISF) Posts Strong Cultivation Results In September

Zenabis Global Inc (OTCMKTS:ZBISF) issued an update on cannabis production results. The company filed a license amendment application for its cultivation license, which will help its production capacity to hit 96,400 kg from 39,400 kg. This growth will be an outcome of expanded cultivation areas to 101,300 square feet for Zenabis Langley – Part 2A.

Zenabis Langley project Timeline

Zenabis has announced new construction timelines for its Zenabis Langley project. Now it will be carried out in two phases, Zenabis Langley-Part 2B and Zenabis Langley-Part 2C. The license amendment for Part 2B will be submitted in next month, while the license amendment for the next phase will be out in February 2020. With this revised timeline, the company can preserve cashflow and lower ramp-up risk. Completing the licensing at Zenabis Langley in the second quarter of next year, the total cultivation capacity on an annual basis will touch 143,200 kg of dried cannabis. The changes in the timeline for Zenabis Langley will defer reaching full design capacity at the Zenabis facility. Still, the company expects to achieve capacity of 96,400 kg by the end of 2019. This is expected to increase to over 111,000 kg after the license approval of Part 2B amendment.

Andrew Grieve, the CEO of Zenabis, expressed his optimism on the recent production results. He stated that they were able to record exceptional production results in September. The production output showed remarkable growth as it surpassed the initial forecast by more than 21%. Performance Ratio declined to 14.2% in September from 30%. The increase in the number of harvests from licensed rooms helped the company to boost its performance.

As of now, the only challenge that the company face is that of rapid scale-up and different cultivation approaches at Zenabis Atholville, which results in room by room variance. The company expects this problem to offset with steady-state production yields for each cultivar in the near-term. Zenabis Atholville has been taking adequate measures to achieve general steady-state operations by the end of 2019.

By Steven Russell

Steve covers business and investing in emerging medical marijuana markets. Steve graduated from the university of New Orleans with a degree in Broadcast Journalism. Steve has published several articles in professional journals and magazines. His experience gives readers an inside look at the intersection of his specialties, business and medical marijuana.

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