Zenabis Global’s (TSX:ZENA) cultivation output in August 2019 was 1,996 kg of dried cannabis, 40.9% greater than its revised design capacity and 26.4% greater than its Aug. 6 revised forecast output of 1,579 kg of dried cannabis.
In a statement, Andrew Grieve, CEO, said that output in August 2019 was more than 60% greater than reported for any other month.
“Through to the end of October we expect the variety of cultivation approaches and rapid scale-up of the facility to result in significant room by room variance, after which we expect to achieve steady-state yields for each cultivar at Zenabis Atholville,” Mr. Grieve said. “We expect general steady-state operations in Atholville by December of 2019.”
The company also launched Re-Up, its high value, low cost cannabis brand, through which it expects to provide various cannabis products to consumers at a competitive price.
Zenabis continues to focus on construction and licensing of its Langley facility and is currently converting the second phase of Zenabis Langley’s first 10 acres. The company plans to submit a license amendment application for the facility’s existing cultivation license by the end of September 2019, which would increase Zenabis’ total licensed annual production capacity to 96,400 kg.
At Zenabis Atholville, the company is focusing on operational improvements to reduce operating costs and post-harvest processing. Zenabis is conducting an equipment upgrade that would increase the facility’s extraction capacity to 55,200 kg. The upgrade is expected to be complete by November 2019.
Earlier this month, the company received a cannabis processing license for Zenabis Stellarton and commenced pre-roll production. Zenabis plans to increase its pre-roll capacity from 400 kg to 1,200 kg of pre-rolls per month by November 2019.
The company continues to construct 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, the company expects to produce approximately 14,888kg of dried cannabis from September through December of 2019.
