Zenabis Announces Conversion of Remaining Secured Convertible Notes

VANCOUVER, BC, Oct. 30, 2020 /CNW/ - Zenabis Global Inc. (TSX: ZENA) ("Zenabis" or the "Company") is pleased to announce that it has entered into an agreement (the "Note Amending Agreement") with the holders (the "Noteholders") of the subordinated secured convertible notes originally issued by Zenabis Investments Ltd. on October 17, 2018, as amended on August 21, 2019, January 31, 2020 and June 1, 2020 other than Agentis Capital (each, a "Note" and collectively, the "Notes"). The Note Amending Agreement provides for the conversion of 100% of the outstanding principal amount and the accrued interest on each Note into common shares of Zenabis ("Common Shares") at a price of $0.04794 per Common Share (the "Conversion") resulting in the issuance of an aggregate 32,208,806 Common Shares to the Noteholders. Additionally, the Note Amending Agreement provides for the issuance of an aggregate 16,104,403 warrants ("Warrants") to the Noteholders. Each Warrant is exercisable into an additional Common Share at a price of $0.06768 for a period of five years from the date of issue,  subject to the Company's right to accelerate the expiry date of the Warrants to a date that is not less than 15 days following delivery of written notice from the Company if the trading price of the Common Shares equals or exceeds $0.1356 for a period of 10 consecutive trading days on the Toronto Stock Exchange (the "TSX").

The TSX has conditionally approved the Conversion and the listing of the additional Commons Shares issuable pursuant to the Conversion. Listing of these securities is subject to the Company fulfilling standard TSX listing requirements.

About Zenabis

Zenabis is a significant Canadian licensed 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; Aldergrove, Pitt Meadows and Langley, British Columbia; and Stellarton, Nova Scotia. Zenabis currently has 111,200 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.

Zenabis expects Zenabis Stellarton and Zenabis Langley facilities to join Zenabis Atholville in steady state production in 2020. 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.

Forward Looking Information

This news release contains statements that may constitute "forward-looking information" within the meaning of applicable Canadian securities legislation. This forward-looking information includes, among other statements, statements regarding the closing of the transactions contemplated by the Note Amending Agreements; Zenabis' issuance of 32,208,806 Common Shares pursuant to the Conversion; Zenabis' issuance of an aggregate 16,104,403 warrants to the Noteholders pursuant to the Note Amending Agreement and 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 annual information form dated March 30, 2020, 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.

SOURCE Zenabis Global Inc.

Media Relations, Email: [email protected], Phone: [phone]; Investor Relations, E-mail: [email protected], Phone: [phone]

Related Links

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