The Long Exhale Has Started: Zenabis flog off facility for $CN6.65 million, media report says “that’s half what it cost them”

It might not yet be the South Sea Bubble but Canada’s corporate cannabis craze is beginning its long exhale.

That’s the second report in the last few hours from MJ Biz that suggests certain companies are struggling.

In the world of C-Suites the language is always of re-alignment or some such similar gumph

This press release just in

Zenabis Announces Conditional Agreement for the Sale of Zenabis Delta

VANCOUVER, BC, Nov. 30, 2020 /CNW/ – Zenabis Global Inc. (TSX: ZENA) (“Zenabis” or the “Company“) today announced that it has entered into a conditional agreement for the sale of its facility in Delta, British Columbia.

The agreement, for the sale of land and buildings only, provides for a gross purchase price of $6.65 million and is subject to conditions that are typical for a transaction of this nature. This transaction is expected to close no later than December 30, 2020.

Shai Altman, Chief Executive Officer of Zenabis, stated, “we are very pleased to have reached a deal for the sale of our Delta facility. Now that the Company has reached a commercial deal encompassing only the land and building of the site, we will start the process of redeploying the state-of-the-art analytical testing equipment located in the Delta facility to Zenabis Atholville. Once completed, this will enable the Company to fulfill a significant amount of its testing requirements in-house, allowing the Company to realize substantial cost savings and reduce testing lead times, versus its currently out-sourced testing arrangements.”

Source: https://www.newswire.ca/news-releases/zenabis-announces-conditional-agreement-for-the-sale-of-zenabis-delta-862456991.html

MJ Biz report..

The gross purchase price of the Delta property is 6.65 million Canadian dollars ($5.1 million), Zenabis said in a news release.
A property matching the same description had been listed for roughly CA$12.75 million earlier this year before being lowered to CA$11.75 million.

Oops !

Full report here

Zenabis selling cannabis facility for half original asking price

Latest posts