|Bid||0.0000 x 0|
|Ask||0.0000 x 0|
|Day's Range||0.4947 - 0.5678|
|52 Week Range||0.4250 - 3.0360|
|Beta (3Y Monthly)||N/A|
|PE Ratio (TTM)||N/A|
|Forward Dividend & Yield||N/A (N/A)|
|1y Target Est||N/A|
Zenabis Global (ZBISF) has large global cannabis aspirations, but the company also has a balance sheet that doesn’t match the size of their aspirations. When the cannabis market was strong, the risk to investors was low. The market shift has the investor focus far away from the ability of the company to expand operations with the biggest questions now shifting to whether the company has the cash to build the empire.August Corporate UpdateZenabis is one of the cannabis companies that was late to the cannabis market, but the company has huge plans to take on the large global cannabis companies in Canada. The Vancouver-based company has gone from limited monthly production to start the year to 1,996 kg of production just in August alone.The company has easily beaten revised capacity goals all this year. The current forecast has Zenabis reaching production of 3,758 kg in October and 5,199 kg in November.At this point, the market will start realizing the company as a legitimate cannabis producer being on target to top 15,000 kg of production in the December quarter. Noteworthy is that Aurora Cannabis only generated 15,590 kg of cannabis in the March quarter. Zenabis is only a few quarters behind the production rate of the biggest in the industry.The company is on path to licensed production of 96,400 kg once obtaining approval for the increased capacity at Zenabis Langley. Management forecasts the existing capital plan allowing for production capacity to reach 143,200 kg of dried cannabis. The long-term goal is to reach production capacity of nearly 500,000 kg once the existing facilities are fully built out. The good news here is that Zenabis hasn’t aggressively entered into plans to build out these operations already. Financing QuestionsThe stock trades at $0.66 likely due to the recent financing disclosed with a 25.8% annualized all-in cost of financing or possibly investors still aren’t familiar with the production plans of the small company. The stock has a listed market valuation of only $150 million despite revenue estimates of $220 million in 2020 that appear very low for a company after reporting C$25 million in Q2 revenues and a serious ramp up in production already in the process.The biggest question has turned to the cost of financing the operations. Zenabis entered the quarter with $8.7 million in cash on the balance sheet. The company raised $25.0 million back in August at a very high cost. In addition, the pre-paid supply agreements add another $40.0 million in cash.The total cash position including another equate to ~$74 million in available cash. The biggest question for Q3 is whether the company can cut the cash burn to a reasonable amount to reach cash flow positive quicker considering the financing options now aren’t very appealing.The company now has over 270 million shares outstanding following the additional cost of the financing. The fully diluted market value is only $180 million even after the extra costs of the debt deal.Consensus Verdict Zenabis Global has a small, but vocal camp of bullish analysts with positive expectations for its stock. Two analysts polled by TipRanks rate the stock a Buy. With a return potential of 350%, the stock's 12-month consensus price target stands at $2.72. TakeawayThe key investor takeaway is that Zenabis Global continues full speed ahead with massive production and cultivation growth. Due to high cost debt, the company must shift to generating cash flows from these growing operations before building the large cannabis empire. The stock is cheap, if the company can avoid needing any further financing until the market improves.ee Zenabis Global stock analysis on TipRanks »
VANCOUVER , Sept. 30, 2019 /CNW/ - Zenabis Global Inc. (ZENA.TO) ("Zenabis" or the "Company") today announced that it has entered into a definitive agreement (the "Agreement") with PAX Labs, Inc. ("PAX"), under which Zenabis will supply cannabis extracts for PAX Era Pods designed for use with the PAX Era vaporizer device. This Agreement will make Zenabis the fifth and only additional Licensed Producer ("LP") to launch PAX Era Pods, later this year, when and as permitted under applicable laws. Under the terms of the Agreement, Zenabis will supply cannabis extracts in the form of PAX Era Pods nationwide through its supply arrangements with the nine provinces and one territory, pending anticipated changes to the Cannabis Act to permit the sale of cannabis extracts for vaporization.
Zenabis has entered into an agreement with beverage technology company Beverage Partner that will supply it with water soluble, odorless, flavorless and colorless cannabis-infused inputs. The beverage inputs supplied by Beverage Partner will be produced from cannabis supplied by Zenabis. Beverage Partner may also produce finished cannabis-infused beverages for Zenais by installing a production line for both beverage Inputs and finished cannabis-infused beverages, at its own cost, at Zenabis Stellarto.
Investing in the cannabis sector is risky in general, but one stock offers a lottery ticket with a good opportunity of paying out. Zenabis Global (ZBISF) has one of the lowest valuations in the sector with the stock trading at $1. The company projects cultivation capacity growth to match some of the industry leaders while the stock valuation is a fraction of the industry leaders.Cultivation Growth In Q2, Zenabis Global cultivated 2,473 kg of dried cannabis to nearly double the cultivation in the prior quarter. The company now has 54,000 kg of licensed cultivation capacity after starting the year at next to nothing and only 10,200 kg at the end of Q1 in March.The below chart is not inclusive as a company like Canopy Growth (CGC) released the harvest of 40,000 kg in the June quarter alone, but the chart provides a solid indication of how Zenabis Global already sits in the middle of the pack in the Canadian cannabis sector.(Source: Zenabis Global website)Stocks like recent IPO Sundial Growers (SNDL) and OrganiGram Holdings (OGI) have market caps near $1 billion while Zenabis Global is only worth $200 million. The company has the capital plans in place to reach capacity of 143,200 kg, recently increased by 12,000 kg due to harvests that have consistently exceeded capacity designs.Zenabis Global has a long-term plan to eventually reach over 470,000 kg of annual cultivation capacity with existing greenhouse facilities built out and converted to cannabis production.Operational HiccupsWhile Zenabis Global continues to exceed capacity targets, the company failed to meet internal Q2 revenue targets. Net revenues doubled sequentially to C$25.0 million, but the guidance was for cannabis revenues between C$10.0 to C$12.0 million. The cannabis segment only generated revenues of C$7.3 million.The propagation revenues of $18.1 million in the quarter is interesting, but the market will focus mainly on the cannabis revenue portion. The issue was two-fold in the quarter: pricing discounts to obtain market share and an issue with a third-party supplier as the company ramps up cultivation.Of the 1,720 kg sold in the quarter, Zenabis Global only sold 1,388 kg from their own supply. Another 554 kg had to be rejected. This part of the business isn’t much of a concern as production ramps will eventually lead to the company selling 10x as much kg from their own production.The one concern is the pricing picture that in a lot of ways is a bigger issue for the market. Zenabis Global saw cultivation cash costs dip to C$0.78 per gram in the quarter with a forecast of the Langley facility dipping to only C $0.50 per gram.These cash cost levels will allow Zenabis Global to make a solid profit even on the net revenue per gram sold of C$4.22. The price dipped 29% sequentially and will need to stabilize for the lottery ticket to pay off.TakeawayThe key investor takeaway is that Zenabis Global has the licensed cultivation capacity to reached annual sales of C$200 million with the market cap now around $200 million. The lottery ticket might not pay off, if industry pricing trends down too far, but the stock offers a better risk/reward scenario than paying 10x future sales estimates for other Canadian cannabis stocks.Visit TipRanks’ Trending Stocks page, and find out what companies Wall Street’s top analysts are looking at now.
Zenabis Global Inc (OTC: ZBISF ) announced Tuesday a Health Canada licensing win that will augment its annual production capacity by roughly one-third. What Happened Zenabis Global said it received a cultivation ...
Canadian cannabis company Zenabis Global Inc. said Tuesday it has received a licence to add 9,900 kg of licensed annual cultivation capacity at its Zenabis Langley facility. Vancouver-based Zenabis said the move increases its total licensed annual cultivation capacity to 42,800 kg of dried cannabis from 32,900 kg, an increase of more than 30%. The company has now received licenses for all four its facilities with 438,200 sq. feet of licensed operational space. U.S.-listed shares were not yet active premarket, but have fallen 19% in the last three months, while the S&P 500 has fallen 3%.
VANCOUVER , Aug. 6, 2019 /CNW/ - Zenabis Global Inc. (ZENA.TO) ("Zenabis" or the "Company") is pleased to announce the receipt of its cultivation license from Health Canada for Zenabis Langley. Zenabis Langley features a highly advanced production environment that supports both growing and packaging operations for both bulk and retail products. Zenabis Langley will employ more than 200 staff after Site A is complete.
Shares of Canadian cannabis company Zenabis Global Inc. rose about 3% Monday, after the company said Health Canada has approved the license for an additional 9.8 tons of production capacity. The move brings the company's total capacity to 32.9 tonnes, up more than 40%. GMP analyst Justin Keywood said the news is consistent with his expected timing. The company is expecting annual licensed capacity to increase to 131.2 tons by the third quarter. If that materializes, it would position the company as a top 5 producer among Canadian licensed players. "In our view, the continued licensing progress for ZENA's facilities helps de-risk our near-term forecasts," said Keywood. The stock is trading well below peers at 6.5 times 2020 EBITDA, while rivals trade at an average of about 20 times, he wrote. GMP rates the stock a buy with a stock price target of C$3.25 ($2.47) that's more than double its current level.
VANCOUVER , July 2, 2019 /CNW/ - Zenabis Global Inc. (ZENA.TO) ("Zenabis" or the "Company") today announced that its wholly-owned subsidiary, Zenabis Ltd., has entered into an agreement with High Park Holdings Ltd. ("High Park") (the "Supply Agreement"), a wholly-owned subsidiary of Tilray, Inc. (TLRY) ("Tilray"), pursuant to which High Park will advance CAD $30 million to Zenabis (the "prepaid amount") in return for a supply of dried cannabis from Zenabis. Under the terms of the Supply Agreement, Zenabis will deliver a monthly quantity of dried cannabis to High Park commencing in October 2019 .
Subject to receipt of all required regulatory approvals, the Amendment will extend the maturity date of the Facility from October 17, 2019 to the date that is one year from the date of the closing of the Amendment (the "Closing Date").
Zenabis Outperforms Design Capacity by 35% in May and Announces 70% Increase in Licensed Annual Cultivation Capacity
The cannabis market is expanding so fast that keeping up with all of the different companies jumping into the business and going public is near impossible. At the same time, some of the developments under the radar of the general market provide opportunities for investors willing to take on risk.One suddenly interesting play in the Canadian cannabis sector is Zenabis Global (ZBISF) that was formed via a RTO merger in January. The company is a potential hidden giant in the making.Major PlansZenabis Global definitely talks a big game. The licensed cultivator of medical and recreational cannabis was formed in January via the combination of Bevo Agro, Inc. and Sun Pharm Investments Ltd.The combination provided a propagation business with greenhouses in North America with a large privately held cannabis producer that operates four facilities intended for cannabis cultivation. Zenabis has a stated plan to reach cannabis production capacity of 131,300 kg in Q3 with a total design capacity of 479,300 kg.The company has very lofty goals for a cannabis player that has yet to top 1,000 kg in monthly cultivation. New CEO Andrew Grieve shared the following corporate objectives along with the conditional approval of “ZENA” joining the Toronto Stock Exchange: * Becoming one of the largest licensed producers of medical and adult-use cannabis in Canada and securing competitive positions in a number of international markets. * Achieving industrial scale cultivation of top-quality cannabis at a low cost. * Rolling out a large offering of ultra premium, premium and value cannabis products to the market through our significant distribution networks.The interesting part is that the stock only has a market cap of $250 million despite all of the large-scale plans in the Canadian cannabis sector. The Sun Pharm portion of the business generated Q4 revenues of C$3.8 million primarily from the medical and recreational cannabis market in Canada while the main Bevo greenhouse is being converted to grow cannabis.Another interesting part is that Zenabis under the new leadership of Andrew Grieve has taken on the stance of providing transparent details on monthly cultivation numbers and plans. The existing licensed Zenabis facilities have the following cultivation targets:Source: Zenabis press releaseMajor UplistingThe biggest news for the stock could be the impending uplisting to the TSE. The company announced conditional approval on April 22. Such a move could lead to a listing on a major exchange in the U.S. similar to the big Canadian LPs that obtained outsized market valuations.The company might be better off pursuing business in the U.S. cannabis market, but a move to the TSE will provide substantially more liquidity for the stock and hence a much higher valuation in the short term. The major exchanges don’t allow for listings of companies with a business that is illegal on a federal level such as cannabis in the U.S.The stock is already down substantially from the highs following the news of the RTO merger. The next key catalyst along with the TSE uplisting that would provide major credibility to the new cannabis firm is Q1 earnings on May 30. The report will provide the first financials of the new company along with analyst access to the CEO and new CFO.TakeawayThe key investor takeaway is that Zenabis Global has an incredible plan to turn the greenhouse and growing expertise of Bevo Agro along with the cannabis licenses of Sun Pharm to build a cannabis industry leader.The market hasn’t taken notice of the stock yet. The current valuation near $250 million is not reflective of the potential growth of the company with one of the largest cannabis cultivation plans.To read more on the nitty gritty of what’s going on in the rising cannabis industry, click here. Disclosure: The author has no positions in Zenabis Global stock. More recent articles from Smarter Analyst: * Facebook Watch Is One to Watch * Rally on! Micron (MU) Stock Has Another 16% to Go, Says Deutsche Bank * Apple (AAPL) Slowly Assembling Approach to Autonomy with Drive.ai * Apple (AAPL): With High Hopes for Trade War Resolution, Is It Time to Buy the Stock?
VANCOUVER , May 13, 2019 /CNW/ - Zenabis Global Inc. (ZENA.V) ("Zenabis" or the "Company") is pleased to announce the licensing of Phase 2A at its Zenabis Atholville facility (an additional 3,200kg of cannabis cultivation capacity) and disclose the date of its next operational update: May 21, 2019 (for the month of April 2019 ). This amendment increases licensed operating space from the existing 136,800 square feet at Zenabis Atholville to 174,900 square feet. "Since the creation of Zenabis in January of 2019, we have more than doubled our licensed cultivation capacity from approximately 6,000 kg to 13,400 kg, and we have an additional 9,800 kg of cultivation capacity at Zenabis Atholville submitted and awaiting licensing approval.
Seattle, Washington--(Newsfile Corp. - May 8, 2019) - CFN Media Group ("CFN Media"), the leading agency and financial media network dedicated to the North American cannabis industry, announces the publication of an article covering Zenabis Global Inc. (TSXV: ZENA) and its aggressive cannabis production model. With licensed facilities in British Columbia, New Brunswick, and Nova Scotia, near-term and large-scale expansion plans, and supply agreements in place across the country, Zenabis is aiming to take ...
"We are very excited to announce the rollout of our new recreational products as they represent a tangible milestone in our product expansion strategy, which will contribute to overall revenue growth in 2019," stated Andrew Grieve , Chief Executive Officer of Zenabis. The Company's new pre-roll products, initially launched in stores in mid-April, are currently being carried in its key markets of New Brunswick and Nova Scotia . Following the receipt of its oil license as announced in news on March 18, 2019 , the Company has begun offering cannabis oil products under its recreational Namaste brand. Initially, the Company will be offering cannabis oil products in 30 mL bottles and will offer additional products such as soft gel capsules and sprays starting in May 2019 .
VANCOUVER , April 22, 2019 /CNW/ - Zenabis Global Inc. (ZENA.V) ("Zenabis" or the "Company") is pleased to announce that it has received conditional approval to graduate its listing from the TSX Venture Exchange (the "TSXV") to the Toronto Stock Exchange (the "TSX"). "Moving to the main board of one of the largest exchanges in the world is a critical milestone for the Company in terms of demonstrating the strength of our business and expanding our investment appeal to a broader and global audience," stated Andrew Grieve , Chief Executive Officer of Zenabis.
More than 40 international companies applied to address the assembled investors and industry experts at Benzinga's Cannabis Capital Conference April 17-18, from major industry players to rapidly growing startups looking to scale to new markets. Pure Global Cannabis Inc. (OTC: PRCNF) is a vertically integrated cannabis company with a goal of becoming the most trusted LP in the medical channel. The company aims to do this by focusing on four main pillars, but also by learning from the past, said CEO and President Maylay Panchal.
Zenabis Announces Appointment of New Chief Financial Officer and Files Final Base Short Form Prospectus
VANCOUVER , March 18, 2019 /CNW/ - Zenabis Global Inc. ("Zenabis") (ZENA.V) announced today that it is now licensed to process and sell cannabis oil products in Canada . The license enables Zenabis to now sell cannabis oil produced at its Atholville, New Brunswick facility, one of the largest indoor cannabis growing facilities in Canada , where Zenabis was already processing oil. Zenabis expects to market and sell cannabis oil products to its medical clients and to adult use consumers through supply and distribution agreements that Zenabis has in place with nine Canadian jurisdictions including British Columbia , Alberta , Saskatchewan , Quebec , Nova Scotia , New Brunswick , Manitoba , Prince Edward Island , and the Yukon .