Licensed producer Zenabis Ltd. – which is merging with Bevo Agro to become Zenabis Global – has signed an LOI and received a purchase order from Running Leaf Corporation, one of the first approved distributors to supply cannabis to the Saskatchewan adult-use market.
Vancouver, British Columbia – October 25, 2018 – Bevo Agro Inc. (TSXV: BVO) (“Bevo”) and Sun Pharm Investments Ltd. “Sun Pharm” are pleased to announce that Zenabis has entered into a LOI with Running Leaf Corporation (Running Leaf) to supply up to 11,858 kilograms to October 2020 to Saskatchewan adult-use retailers licensed and approved for adult-use cannabis sales. Zenabis will sell under the premium Namaste brand. Namaste’s products include dried flower, milled cannabis, and pre-rolls. Running Leaf Corporation is one of the first wholesale distributors approved to supply cannabis to licensed Saskatchewan retailers.
Running Leaf has issued its first Purchase order with Zenabis to supply its wholesale operation with cannabis for Q4. Zenabis has fulfilled and will ship its first order upon receipt of a license from SLGA. Running Leaf has requested an estimated total volume of up to 11,858 kilograms from Zenabis for its recreational adult-use distribution needs which both parties expect to increase over as product demand grows and shifts into new categories such as edibles (including beverages), and concentrates (including in cartridges). Running Leaf and Zenabis intend to enter into an exclusive supply and distribution agreement under which Running Leaf will be the exclusive distributor of Namaste branded adult-use cannabis in Saskatchewan, and Running Leaf will source exclusive strains from the Namaste by Zenabis brand of Adult Use products. A definitive distribution agreement covering all the points above is expected to be signed shortly – subject to Zenabis receipt of license in Saskatchewan by the SLGA.
“We have been looking to partner and align ourselves with companies that are leaders in the cannabis industry since the beginning. We know that Zenabis will be one of those companies that is a leader in the industry and that they will be able to bring a consistent quality product to the market,” said Dawson MacKinnon and Jesiah Wedel, Founders of Running Leaf. “All of us at Running Leaf are excited to move forward into a partnership with Zenabis and are prepared to supply Namaste products to the province of Saskatchewan.”
“We are pleased that this Agreement will allow us to introduce our premium ‘Namaste’ branded adult-use products to Saskatchewan residents,” said Rick Brar, CEO of Zenabis. “This Agreement furthers our strategy of meeting the demand for Namaste Products in each Province. In these early days of legalization, we are discovering that Namaste adult-use Products are in high demand in British Columbia, the Yukon, Quebec, New Brunswick and Nova Scotia. We look forward to working with Running Leaf and taking advantage of their considerable expertise in commercial wholesaling and distribution.”
Learn more about Zenabis’ premium Namaste brand: https://www.namaste.com/
As previously announced on announced October 4, 2018, Bevo and Sun Pharm have entered into an arrangement agreement with respect to a reverse take-over of Bevo (the “Bevo-Sun Pharm Transaction”), and announced that the resulting issuer will change its name to Zenabis Global Inc. (“Zenabis”). Through Sun Pharm’s subsidiary licensed producer Zenabis Ltd. (“Zenabis”), Zenabis Global Inc. will have nearly 3.5 million square feet of available production space.1 Completion of the Bevo-Sun Pharm Transaction remains subject to receipt of shareholder and all required regulatory approvals.
Zenabis Key Milestones
About Bevo Agro
Bevo Agro is North America’s leading supplier of propagated agricultural plants, operating approximately 53 acres of state-of-the-art greenhouse facilities on 98 acres of land in Langley, BC and 20 acres of land in Pitt Meadows, BC. The company has entered into a binding agreement to acquire 10.4 acres of greenhouse space on 50 acres of land in Aldergrove, British Columbia (the “Greenhouse Acquisition”). The Company’s main products have been the propagation of vegetable plants such as tomatoes, peppers, cucumbers, and other plants such as bedding plants, flowers and grasses. The Company markets its products to established greenhouse growers, nurseries and retail outlets throughout North America.
About Sun Pharm
Sun Pharm has significant experience in agriculture, technology, pharmaceutical sales, consumer packaged goods, international distribution and brand marketing, with cannabis and cannabis-related purchase orders from the provinces of New Brunswick, British Columbia, Nova Scotia, and Yukon Territory. Sun Pharm is currently a privately-held cannabis company which has one of the largest, federally licensed indoor medical cultivation footprints in Canada, operating two licensed production facilities in British Columbia and New Brunswick, with a third expected to be coming online shortly in Nova Scotia. These facilities encompass 660,000 square feet of indoor pharmaceutical grade cannabis production space, strategically positioned on Canada’s coasts, facilitating national distribution and access to international markets. Sun Pharm is currently working towards globally recognized EU GMP certifications. Sun Pharm has a management team with decades of experience in the industry, with expertise in retail consumer packaged goods, global pharmaceutical sales and manufacturing, quality assurance, and commercialized cultivation. The growing team has more than two decades of experience in organic cultivation and distribution of herbs and nutraceutical products throughout the Americas, North Africa, and the Middle East. Sun Pharm’s sales team has more than two decades in product development, commercialization, and retail and pharmaceutical sales including international distribution.
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 Bevo, 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, including the completion of the Transaction. 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 Bevo’s control. These risks, uncertainties and assumptions include, but are not limited to, those described Bevo’s Management’s Discussion & Analysis for the fiscal year ended June 30, 2018, 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. Bevo does not intend, nor does Bevo 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.
1 After completion of planned expansions
For more information, visit: https://www.zenabis.com.