Licensed producer Zenabis Ltd. – which is merging with Bevo Agro to become Zenabis Global – has received $2.1m in additional investments from strategic partners.
Vancouver, British Columbia – November 27, 2018 – Bevo Agro Inc. (TSXV: BVO) (“Bevo”) and Sun Pharm Investments Ltd. “Sun Pharm” are pleased to announce that Zenabis has signed subscription agreements with three additional strategic investors, including two members of the ownership and management team of Hillsboro Corp Inc. (“True Buch”), for $2.1m at a subscription price of $5.00 per share for a total of 420,000 common shares. Sun Pharm agreed verbally to the price of $5.05 per share on November 16, 2018, after taking into account the exchange ratio of 0.991x. This represents a premium of $0.35 to the closing price of Bevo of $4.70 on that day. True Buch previously invested $1.0m at a subscription price of $2.82 per share for a total of 354,610 common shares, representing a total investment of $3.1m.
True Buch is a kombucha company with expertise in the creation of cultured tea beverages. True Buch cultured tea beverages are raw, unpasteurized, gluten free and non-GMO, with over 11 distinct flavours. Zenabis and TrueBuch intend to utilize each other’s expertise to infuse cannabis into True Buch beverages, creating a cultured tea beverage CBD product.
“As previously announced on October 16, 2018, Zenabis and True Buch formed a significant partnership to develop and distribute CBD-based kombucha,” said Rick Brar, CEO of Zenabis. “This commitment from large existing owners of True Buch shows their belief in our mission and our partnership. We believe our combined expertise in product and brand development and Kombucha brewing will result in delivery of a superior product to Canadians nationwide.”
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. Zenabis intends to convert the Bevo Langley greenhouse (2.1 million square feet) by March 2020. Zenabis will build and/or acquire additional propagation greenhouse space over the coming year in order to maintain all of Bevo’s current food/floral propagation capacity while the current Langley facility is being converted.
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.