Zenabis Announces Cultivation Agreement with Tantalus Labs
Vancouver, British Columbia – October 22, 2019 – Zenabis Global Inc. (TSX:ZENA) (“Zenabis” or the “Company”) today announced that it has entered into an agreement (the “Cultivation Agreement”) with Tantalus Labs Ltd. (“Tantalus Labs”), pursuant to which Zenabis will grow and harvest cannabis plants from clones provided by Tantalus Labs.
The plants will be grown and harvested at Zenabis Langley. Tantalus Labs will be responsible for all drying, trimming and packaging at its own licensed facilities. The initial term of the Cultivation Agreement will be two years with the option to renew thereafter for successive two-year terms by mutual written agreement of the parties. In 2020 and 2021, Zenabis expects to grow and supply quantities of cannabis plants that will be sufficient for Tantalus Labs to produce thousands of kilograms of dried cannabis.
“Tantalus is excited to leverage the proven QA systems and elite agricultural insight of Zenabis at their Langley facility. This relationship will allow Tantalus to deliver our sungrown quality promise to an expanding audience in Canada, while collaborating with some of the brightest agricultural minds in this new Canadian cannabis industry. Our team is motivated to evolve our quality standards with Zenabis for years to come.” said Dan Sutton, Chief Executive Officer, Tantalus Labs.
Andrew Grieve, Chief Executive Officer of Zenabis, stated, “Given Tantalus Labs’ meticulous approach to the design and construction of its own facility, we are pleased that it has selected Zenabis as a cultivation partner. We share Tantalus Labs’ commitment to continuously push growing practices and standards onward and upward for the efficient production of high-quality, sungrown cannabis. To that end, we are excited to enter into this innovative agreement that leverages extensive cultivation experience of the Zenabis team and Zenabis Langley’s significant design capacity.”
About Tantalus Labs
Tantalus Labs is committed to sungrown cultivation of world class cannabis products. Owned and operated in British Columbia, their team is a group of specialized scientists, engineers, and designers committed to the advancement of agricultural science. They believe that passion for natural, sungrown cultivation methods will usher in a brighter future for clean cannabis. For more information, visit www.tantaluslabs.com.
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; 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 and Zenabis Langley is fully converted and dedicated to production, Zenabis will own, and have access to 635,000 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 design capacity of 143,200 kg of dried cannabis under its existing capital plan. 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.
Forward Looking Information
This news release contains statements that may constitute “forward-looking information” within the meaning of applicable Canadian securities legislation. Forward-looking information may include, among others, statements regarding 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. In this news release, forward-looking statements relate, among other things, to: the anticipated quantities of cannabis plans grown pursuant to this agreement and expectations for our relationship with Tantalus; and the projected kilogram yield of licensed facility space and facility space in the process of, or scheduled for, construction and/or licensing.. 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 shelf prospectus dated April 9, 2019, 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: www.zenabis.com