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

Zenabis Global Inc. (TSX: ZENA) announces that it is commencing a “best efforts” overnight marketed offering of units of the Company 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.

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 Brunswick; Aldergrove, Pitt Meadows and Langley, British Columbia; and Stellarton, Nova Scotia. Zenabis currently has 111,200 kg of licensed cannabis cultivation space across four licensed facilities. Zenabis has 3.5 million square feet of total facility space dedicated to a mix of cannabis production and cultivation and its propagation and floral business.

Zenabis expects Zenabis Stellarton and Zenabis Langley facilities to join Zenabis Atholville in steady state production in 2020. The Zenabis brand name is used in the cannabis medical market, the Namaste, Blazery, and Re-Up brand names are used in the cannabis adult-use recreational market.

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.

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.