Zenabis Global Inc. (OTCMKTS:ZBISF) has provided an operations update on its recent facility construction as well as licensing activities.
The company is finalizing the construction and licensing of the Zenabis Atholville facility and has set sights at Zenabis Langley. The construction at Zenabis Langley is on track with previous guidance. This will increase annual cultivation capacity to 143,200 Kgs of dried cannabis upon completion of licensing.
Review of design capacity for Zenabis Atholville
Zenabis CEO Andrew Grieve stated that the company attained strong cultivations results in July thanks to cultivation success through June. Grieve said that the company reviewed its design capacity upwards by 35% for Zenabis Atholville. He added that the cultivation team has been refining growing practices to optimize yields from the currently licensed space.
The CEO indicated that through October, the company expects a range of cultivation approaches and the scale-up of the facility to result in the substantial room by room variance. After which the company will attain steady-state yield for every cultivar at the Zenabis Atholville facility.
The company will update and publish the latest design updates for the facilities once it has completed harvest from all the flower rooms. The design capacity for Zenabis Atholville was increased to 46,300 kg per year from 34,300 kg per year.
The $25 million senior secured bet
Last month the company announced the completion of a new senior secured debt of $25 million. This will enable the company to finalize the expansion of its facilities to attain an annual design capacity of 143,200 kg dried flower. Equally, Zenabis believes that the financing is enough for the company to become cash-flow positive without seeking incremental debt financing, issue incremental equity capital, or raise convertible debt.
Concerning the senior secured debt, the company also issued warrants to R.C. Morris Capital Management Ltd for the acquisition of 902, 514 common stock. Also, it reviewed the terms of the subordinated secured convertible notes with holders of the Secured Convertible notes receiving warrants for the acquisition of 1.37 million common shares.