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

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.

Published at Tue, 29 Oct 2019 12:05:01 +0000