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Zenabis outperforms cannabis design capacity by 46% in July

Zenabis Global’s (TSX:ZENA) cultivation output in July 2019 was 1,238 kg of dried cannabis, which represents a 46.2% outperformance relative to original design capacity and a 12.9% outperformance relative to revised design capacity.

Cultivation output of 1,238 kg of dried cannabis was 2.1% greater than the company’s Aug. 6 revised forecast output of 1,212 kg of dried cannabis.

With construction and licensing at Zenabis Atholville largely complete, Zenabis is now focused on construction and licensing of its Zenabis Langley facility. Zenabis Langley construction continues to be on track with prior guidance, with Zenabis’ total annual cultivation capacity expected to increase to 143,200 kg of dried cannabis on completion of licensing at Zenabis Langley.

In a statement, Andrew Grieve, CEO, said the company achieved strong cultivation results again in July. “As a result of our cultivation success through June 2019, we revised our design capacity for Zenabis Atholville upwards by 35%,” he added. “I remain extremely pleased with our cultivation team’s ability to refine our growing practices maximize yield from existing licensed space.”

Mr. Grieve said that through to the end of October, the company expects the variety of cultivation approaches and rapid scale-up of the facility to result in significant room-by-room variance, to be followed by steady-state yields for each cultivar at Zenabis Atholville.

Construction is substantially complete at Zenabis Atholville, which is licensed to have an annual cultivation capacity of 43,300 kg of dried cannabis.

Zenabis is in the process of licensing the final phase at Zenabis Atholville, consisting of four flower rooms (Phase 2C – Part 2). Zenabis submitted a license amendment for Phase 2C – Part 2 in early August, which would increase the licensed annual production capacity of Zenabis Atholville to 46,300 kg of dried cannabis from 43,300 kg.

The company is currently constructing an extraction, post-processing and analytical testing lab at Zenabis Delta, which is expected to be finished by the fourth quarter of 2019.

For its existing licensed facilities of Zenabis Atholville, Zenabis Stellarton and Zenabis Langley Site A – Part 1, Zenabis expects to produce approximately 16,467 kg of dried cannabis from August through December of 2019.

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