Zenabis Grows Rapidly Through Innovative Finance Techniques


Watchers of RichTV Live know that Zenabis Global Inc. (TSX:ZENA) (OTCPK:ZBISF) is one of the most impressive pot stocks out there. The company’s financial results for the second quarter of 2019 showed impressive growth in both its revenue and cultivation numbers. Following that, its operations update for July 2019 displayed further growth as the company broke its own expectations.

Today, Rich discusses a recent profile of the company from New Cannabis Ventures, an online publication that highlights exciting companies in the cannabis space. Though ZENA stock has been on a steady downward trend since July, the profile has plenty of good things to report about the company.

“If these great companies like Zenabis go down, let’s just buy them,” says Rich. “Eventually they’re going to explode and we’ll make a killing.”

Zenabis’s Rapid Growth

Unlike some of the more established cannabis companies, such as Canopy Growth Corporation (TSX:WEED) (NYSE:CGC) and Aurora Cannabis Inc. (TSX:ACB) (NYSE:ACB), Zenabis has not been a part of the cannabis space since before Canadian legalization.

“Zenabis Global was formed in January, so it’s only been around for nine months,” explains Rich. “Yet the company’s growing faster than most.”

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The profile from New Cannabis Ventures reveals that Zenabis was formed through a reverse takeover of Bevo Agro by Sun Pharm Investments. Since its inception in January, it has grown its licensed production capacity from around five tons to more than 50 tons. According to CEO Andrew Grieve, the company aims to reach 140 tons of licensed capacity before the year is out.

Zenabis owns and operates four licensed facilities across Canada. These are: a 460,000-square-foot facility in Langley, BC; a 25,000-square-foot facility in Delta, BC; a 255,000-square-foot facility in Stellarton, Nova Scotia; and the company’s flagship, 380,000-square-foot facility in Atholville, New Brunswick.

In addition, it has a five-acre site for floral propagation as well as the cultivation of hemp in Pitt Meadows, BC. Zenabis has been able to acquire so much facility space thanks to a senior secured debt financing worth $25 million.

“They’ve found all these new financial instruments and ideas to fund their facilities without diluting their stock,” explains Rich. “That’s why I like ZENA—it’s these kinds of ideas and values.”

According to the company, when all its facility space is fully dedicated to production, Zenabis will own a total of 635,000 square feet of indoor cannabis production space. Together, this space will produce a total of 143,200 kg of dried cannabis every year.

Zenabis’s Future Growth

As Grieve notes, cannabis companies cannot establish themselves in the sector through capacity alone. That’s why his company is also focusing on offering products to drive consumer interest.

The company currently offers both flower and value-add options through its two brands. It sells medical cannabis under its own name and recreational cannabis through Namaste Technologies (TSXV:N) (OTCQB:NXTTF).

In the near future, Zenabis plans to launch a micro cultivation brand called Founders Reserve, through its Zen Craft Grow program. According to Grieve, it will have one of the first micro cultivation licenses in Canada through an undisclosed partner.

In August, the company also announced that it was entering the market for cannabis-infused beverages. Sometime after ingestible cannabis products can legally hit shelves in December, Zenabis will offer a line of beverages that will have an onset time of “less than five minutes.”

“These guys are setting themselves up to be a global giant,” says Rich. “They’re going to be supplying the world.”

What do you think? Is Zenabis the next cannabis giant? Let us know what your thoughts are on ZENA stock in the comments below. Also, be sure to check out Rich’s recent profile of the company.

Featured image: DepositPhotos © [email protected]

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