CAN (BC): Zenabis provides production, construction and licensing update

Zenabis Global has provided an update on its recent cannabis production figures; anticipated future harvests; facility construction and licensing status; and medical program update.

Andrew Grieve, Chief Executive Officer of Zenabis, stated, “Cultivation output was very strong in the month of April. We continue to experience variance on a room-by-room basis based on a variety of cultivation approaches being tested. We expect this variance to continue through the month of May. Beyond the harvests in May, aside from variance resulting from ramp-up in rooms, we expect greater consistency in output as a result of a more consistent cultivation approach. In addition, licence amendments are being received in a timely manner, and our construction and licencing teams remain on time, or in some cases are ahead of the previously disclosed schedule.”

Cannabis production summary
"In April 2019, Zenabis had its highest monthly harvest weight to date of 809 kg," the team with the company says. "Zenabis has consistently grown more than the previous month’s harvest weight from October 2018 to April of 2019."

"The amount harvested for the three months ending April 30, 2019 exceeded the design capacity of the flower rooms by an average of 15%, compared to the three-month period from January 2019 through March 2019, during which the amount harvested exceeded the design capacity by 11%."

"In April 2019, Zenabis achieved four harvests at Zenabis Atholville, whereas the forecast included three harvests, with one harvest being accelerated versus schedule. The Performance Ratio of these harvests ranged from (4.0%) to 56.6%."

2019 Full year harvest forecast - Zenabis Athoville and Zenabis Stellarton
According to the company, for its existing licensed facilities of Zenabis Atholville and Zenabis Stellarton (and excluding Zenabis Delta), they expect to produce approximately 12,835 kg from May through December of 2019. Upon receipt of its cultivation license at Zenabis Langley, Zenabis intends to provide a monthly cultivation forecast for Zenabis Langley. 

Construction and Facility Update
The company continues: "The 380,000-square-foot Zenabis Atholville indoor facility is currently licensed to produce cannabis from 174,900 square feet with annual design capacity of 12,500 kg. We are in the process of constructing and licensing additional flower rooms and support space to expand cultivation capacity in two blocks divided into “Phase 2B” consisting of 76,700 square feet and “Phase 2C” consisting of 118,000 square feet. Specific updates are:

  • Phase 2B: We have submitted license amendments to Health Canada to commence production in our Phase 2B expansion project, which will expand the facility’s annual design capacity by 9,800 kg.
  • Phase 2C: Room construction and lighting are complete for this phase. HVAC and electrical are nearly complete. Installation of benches and irrigation equipment are ongoing. We intend to submit our license amendment to Health Canada to commence production in Phase 2C in late May or early June of 2019, versus the prior timing of June or July of 2019 previously provided in the March operational update.

In addition to that, the company states that it is currently converting 10 acres of the first greenhouse property (“Site A”) following the successful transfer of all floral and propagation business from Site A to Zenabis Aldergrove. "Construction at Zenabis Langley is progressing well and is on time. We have completed the construction of all interior and exterior insulated wall panels, offices and staff support areas, and the majority of operational workspaces. The security and HVAC work are ongoing and completion for June is on schedule."

"Site A is divided into six flower zones, which are similar to those in an indoor facility, but much larger in size. Construction of the flower rooms is expected to be completed between June and August, with the first phase of construction completed by the end of June, and construction substantially complete for all rooms by the end of July. Site A has an annual design capacity of 96,100 kg."

Additionally, Zenabis is currently in the process of constructing an extraction, post-processing and analytical testing lab at Zenabis Delta. All components of this construction are scheduled to be completed in the third quarter of 2019.

Finally, Zenabis is currently using Zenabis Pitt Meadows, Zenabis Aldergrove and Zenabis Langley for the propagation and floral business. Zenabis intends to grow hemp on available land at the Zenabis Pitt Meadows and Zenabis Aldergrove facilities upon receipt of industrial hemp licenses from Health Canada. Zenabis intends to grow hemp on available land and in available greenhouse space at the Zenabis Langley facility upon receipt of an industrial hemp license from Health Canada. 

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