Zenabis Global Inc (OTCMKTS:ZBISF) reported a growth of 61.1% YoY in revenues to CAD 21.486 million in Q4 2020. Its full-year revenues are CAD 75.039 million (up 105.9% YoY).
Signs a credit accord
Zenabis signed a credit agreement with a private debt fund based in Canada for principal up to CAD 60 million. Advances drawn from this facility will have an interest of 10%.
The company applied to the Supreme Court of British Columbia in February 2021, to determine the amount required to pay back and close the senior debt.
Enters a merger pact with Hexo Corp
Zenabis and Hexo Corp (NYSE:HEXO) entered a definitive agreement on February 16, 2021. As per the terms of the agreement, Hexo will purchase all of the outstanding and issued common shares of Zenabis.
It is an all-stock deal amounting to $235 million. The shareholders of Zenabis will get 0.01772Â common shares of Hexo for every common share they hold.
The board of directors of both Zenabis and Hexo approved the deal. Following the merger, the combined company will become one of the three top licensed producers in adult-use cannabis sales in Canada. Hexo will get access to the medical cannabis market in Europe through a local partner of Zenabis.
The local partner’s facility in Europe will also serve as a GMP packaging/ distribution center in Europe for the medical cannabis products manufactured at Atholville Facility of Zenabis.
Hexo will also realize synergies of $20 million annually on closing the deal. The company can manufacture additional premium quality cannabis of 111,200 kg every year. It will also get access to a greenhouse facility of 2.1 million sq. Ft. and two indoor facilities spanning 635,000 sq. Ft.
Hexo Corp CEO, Sebastien St-Louis said the company is excited to welcome the team of Zenabis into its family. The transaction offers improved value to the shareholders besides promoting the growth of Hexo in the global and domestic markets.
Growth in 2021
According to Zenabis, the recreational markets in Canada provide enormous growth opportunities in 2021.
The company focuses on growth this year using the operational excellence it established in 2020. It accomplished positive adjusted EBITDA in 2020 by implementing various strategic initiatives.
, Posts A Growth Of 61.1% In Q4 2020 Revenues){kind=link}