Zenabis Global Inc. (TSX:ZENA) (OTCPK:ZBISF) keeps making headlines at RichTV Live and around the cannabis sector. Hot on the heels of ZENA’s second-quarter 2019 financial results, today the company provides an operational update for the month of July.
While most cannabis companies will provide updates once every fiscal quarter, Zenabis has so much good news to tout that an update for last month alone provides more than enough material.
Rich has long been bullish on this company, saying two weeks ago that, “[With Zenabis] we’re finding a gem of a company at a really low price before they explode.” Today we may be seeing the beginning of that explosion, so let’s take a look at what the company has to say.
Zenabis Highlights for July 2019
One aspect of ZENA that makes it such an attractive cannabis stock for investors is its formidable cultivation capacity. Divided between Canada’s east and west coasts, Zenabis owns several state-of-the-art greenhouses that collectively cover 3.5 million square feet.
The company is still in the process of constructing and licensing several of its facilities. In July, it largely finalized work on its Atholville facility, allowing it to focus on its facility in Langley, British Columbia. When this greenhouse is fully licensed for operations, Zenabis projects that its annual cultivation capacity of dried cannabis will be as high as 143,200 kg.
In July, the company produced 1,238 kg of dried cannabis. This number exceeded original performance estimates by 46.2 percent. Even though those initial production estimates were revised, ZENA still outperformed the revised design capacity by 12.9 percent.
“They just keep beating all of their revised design capacity expectations,” explains Rich. “This is showing progress, this is showing growth.”
Andrew Grieve, Chief Executive Officer of Zenabis, explains how this spectacular performance occurred:
“As a result of our cultivation success through June 2019, we revised our design capacity for Zenabis Atholville upwards by 35.0%. I remain extremely pleased with our cultivation team’s ability to refine our growing practices to maximize yield from existing licensed space.”
Grieve further explained that the company will rapidly scale up its Atholville facility through October. In addition, the wide variety of cultivation techniques used there will continue to result in departures from the expected output. This is expected to stabilize, though, before the end of the year.
ZENA’s Future Prospects
Earlier this week, Zenabis Global had some more exciting news to report. The company is officially throwing its hat into the ring of cannabis-infused beverages by producing its own product line.
By working with Hillsboro Corp Inc., a partially-owned subsidiary of ZENA, the company will produce CBD-infused kombucha beverages for retail once cannabis edibles can legally hit the shelves in December.
On top of that, when all of its facilities are fully operational, Zenabis projects its annual cultivation capacity of dried cannabis to be a whopping 490,800 kg.
“Zenabis is going to be so huge,” says Rich, who has gone on record saying he owns ZENA stock and is looking for more.
Despite the positive outlook, ZENA stock has fallen surely and steadily throughout the last year. It hit its 52-week high in November at $6.85, and lately, it has been hovering just above $1.00.
If you think Zenabis is a company destined to grow, now might be the best time to consider investing.
What do you think? Is ZENA stock at its bottom? Will the company’s operational update and cannabis beverages plan cause the price to shoot back up? Let us know your thoughts in the comments below.
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