Zenabis Announces Overnight Marketed Public Offering of Units for Proceeds of Approximately 6 Million

Published: September 18, 2020

Zenabis Announces Overnight Marketed Public Offering of Units for Proceeds of Approximately 6 Million

Zenabis Global Inc. announced that it is commencing a “best efforts” overnight marketed offering of units of the Company (the “Offering”) for gross proceeds of approximately $6,000,000 with ATB Capital Markets Inc., as lead agent on behalf of a syndicate of agents to be formed.

Each Unit will be offered at a price of $0.085 per Unit and will consist of one common share of the Company (each, a “Common Share”) and one common share purchase warrant (each, a “Warrant”) to purchase a Common Share at a price of $0.10 for a period of 60 months following the closing date of the Offering. The Units will be offered in each of the provinces of Canada, except Québec, pursuant to a prospectus supplement to the Company’s base shelf prospectus dated April 9, 2019 (the “Shelf Prospectus”).

Zenabis intends to use the net proceeds of the Offering for general working capital and corporate purposes and the partial repayment of the Company’s unsecured convertible debentures.

The Company also expects to grant to the Agents a 30-day over-allotment option to purchase up to an additional 15% of the number of Units offered in the Offering. The Offering is expected to be priced in the context of the market, with the final terms of the Offering to be determined at the time of pricing. There can be no assurance as to whether or when the Offering may be completed, or as to the actual size or terms of the Offering. The Offering is expected to close on or about Wednesday, September 23, 2020 and will be subject to customary closing conditions, including the listing of the Common Shares on the Toronto Stock Exchange.

This news release shall not constitute an offer to sell or the solicitation of an offer to buy, nor shall there be any sale of these securities in any province, state or jurisdiction in which such offer, solicitation or sale would be unlawful prior to the registration or qualification under the securities laws of any such province, state or jurisdiction.

Zenabis is a significant Canadian licensed cultivator of medical and recreational cannabis, and a propagator and cultivator of floral and vegetable products. Zenabis employs staff coast-to-coast, across facilities in Atholville, New BrunswickAldergrovePitt Meadows and Langley, British Columbia; and Stellarton, Nova Scotia.