Zenabis Announces Increase in Licensed Capacity by More Than 40% and Substantial Completion of Zenabis Atholville

Press Release

VANCOUVER, July 29, 2019 zzx – Zenabis Global Inc. (TSX:ZENA) (“Zenabis” or the “Company”) is pleased to announce the licensing of Phase 2C – Part 1 at Zenabis Atholville (an additional 9,800 kg of licensed annual cultivation capacity).

Highlights:

• The amendment received July 26, 2019 adds 9,800 kg of licensed annual cultivation capacity at Zenabis Atholville;
  
  
• This amendment increases total Zenabis licensed annual cultivation capacity by more than 40%, from 23,100 kg to 32,900 kg of dried cannabis, and Zenabis Atholville licensed annual cultivation capacity from 22,300 kg to 32,100 kg of dried cannabis;
  
  
• This amendment increases licensed operating space from the existing 251,600 square feet at Zenabis Atholville to 295,200 square feet;
  
  
• Zenabis expects to submit a license amendment for the final unlicensed portion of Zenabis Atholville, Phase 2C – Part 2 (15,900 square feet of operating space) shortly, which, once approved, will increase the licensed annual cultivation capacity of Zenabis Atholville to 34,300 kg of dried cannabis (the total design capacity of the facility); and
  
  
• Zenabis has achieved substantial completion at Zenabis Atholville.¹

Andrew Grieve, Chief Executive Officer of Zenabis, stated, “We would like to express our gratitude to the communities of northern New Brunswick that supported us from 2015 through to substantial completion, including the Listuguj First Nation, an initial equity investor in our business. We would also like to express our gratitude to the Province of New Brunswick for investing in our business, and to the people of New Brunswick for making us the number one selling recreational cannabis company in this province.

Personally, I would like to thank every member of the construction and licensing teams for their exceptional effort in completing this asset. We believe that the efficient approval of the Phase 2C – Part 1 license amendment is a testament to the outstanding quality of our construction and licensing teams.

We look forward to the cultivation team delivering well above the design capacity of this asset in accordance with recent performance. Zenabis has now increased its licensed capacity nearly six-fold since the creation of the company in January of 2019 through the business combination of Sun Pharm Investments Ltd. and Bevo Agro Inc. We intend to deliver on our commitment to more than quadruple capacity again in the near-term with the licensing and completion of our Zenabis Langley initial conversion.”

About Zenabis
Zenabis is a significant Canadian licensed cannabis 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; Delta, Aldergrove, Pitt Meadows and Langley, British Columbia; and Stellarton, Nova Scotia. In addition to gaining technologically advanced knowledge of plant propagation, the recent addition of state-of-the-art greenhouses in Langley, Pitt Meadows and Aldergrove provides Zenabis with 3.5 million square feet of facility space that can, if fully converted, be dedicated to cannabis production.

If all facility space at Zenabis Atholville, Zenabis Stellarton, Zenabis Delta and Zenabis Langley is fully converted and dedicated to production, Zenabis will own, and have access to 660,000 square feet of high quality indoor cannabis production space, as well as 2.1 million square feet of greenhouse cannabis production space at its Langley facility, with this production strategically positioned on Canada’s coasts. Zenabis expects these facilities to have an annual cultivation capacity of 131,200 kg of dried cannabis by the third quarter of 2019. These facilities, if fully built out and converted for cannabis production, would have an annual design capacity to yield approximately 478,800 kg of dried cannabis annually, for both national and international market distribution. An additional 700,000 square feet of greenhouse space will be used to continue the existing propagation business and produce industrial hemp, and can be converted to cannabis production at such a time that is beneficial to the strategic position of the Company. The Zenabis brand name is used in the cannabis medical market, while the Namaste and Blazery brand names are used in the cannabis adult-use recreational market, and the True Büch brand name is used for Zenabis’ kombucha products.

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