Zenabis Raises $21 Million in Over-Subscribed Offering

Zenabis

Since hitting a nadir in the middle of the month, pot stocks have rebounded somewhat to end November on a positive note. While the Q3 2019 earnings season wasn’t all investors were hoping it would be, there are signs that 2020 will be an improvement on 2019—especially for stocks like Zenabis Global Inc. (TSX:ZENA) (OTCPK:ZBISF).

As Rich frequently notes, Zenabis continuously exceeds projections. It’s been one of his most consistent picks, and he’s repeatedly referred to the company as a “gem.”

Today, once again, Rich brings the latest ZENA news. There’s plenty for current investors to celebrate here and lots of upside for future investors. So, let’s break down the news.

Zenabis Completes Over-Subscribed Rights Offering

Yesterday, the company announced the completion of a rights offering for gross proceeds of approximately $20.8 million.

This tremendous amount of money was raised through an over-subscription of the offering. This led to the issuance of the maximum number of ZENA common shares: 139,086,624. Each share was priced at $0.15.

Enter Your E-mail Address To Subscribe

* indicates required
 

The company’s CEO Andrew Grieve said of the offering:

“Zenabis is grateful for the support shown by its shareholders in this over-subscribed rights offering by both the public market and insiders. To see an over-subscribed rights offering is a strong vote of confidence from the market.”

The Vancouver-based company is currently working with its transfer agent to sort out the further details of the offering.

“Andrew Grieve, I didn’t think you’d be able to do it, but you did it,” says Rich. “You raised almost $21 million. You found a way. I’ve got to give you a round of applause.”

Zenabis’s Capacity and Growth

ZENA is making a play in both Canada’s medical and recreational cannabis markets.

Its staff and facilities are coast to coast, from Atholville, New Brunswick, and Stellarton, Nova Scotia, to Delta, Aldergrove, Pitt Meadows, and Langley, British Columbia. The company currently has 3.5 million square feet of total facility space dedicated to a mix of cannabis production and cultivation.

By Q2 2020, Zenabis expects its Atholville, Stellarton, and Langley facilities to have a licensed annual production capacity of 143,200 kg.

About two weeks ago, the company announced its Q3 financial results. In those three months alone, Zenabis greatly expanded its licensed capacity and cultivation yields. It also raised $65 million in new financing, which makes today’s news even more remarkable.

ZENA Performance

Zenabis stock gained value on its Q3 report and is now up again.

Ultimately, it appears ZENA will leave November in much the same state that it entered the month. The stock is down more than 95% from the start of the year, however. So, while long-term investors will likely want to see this downturn through, prospective investors might never find an opportunity like this again.

“I think we’ll be seeing serious growth from these prices,” says Rich. “There’s a lot of potential in Zenabis. I’m a believer, and I think we’re going to be seeing some big things.”

What do you think? Is Zenabis a company poised for growth? Are these the right prices to get in on? Let us know what you’re thinking, and keep watching RichTV Live.

Featured image: DepositPhotos © efired

If You Liked This Article Click To Share