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Zenabis cultivation output of dried cannabis up 21.8% in September

Zenabis

Zenabis Global’s (TSX:ZENA) cultivation output of dried cannabis reached 2,089 kg in September 2019, or 21.2% greater than its revised forecast output of 1,731 kg.

Output at the company’s Zenabis Atholville plant outperformed its revised design capacity by 21.8%.

The company submitted a license amendment application for Zenabis Langley’s existing cultivation license to include additional growing areas totalling 101,300 sq. ft. Zenabis’ licensed annual production capacity is expected to increase by 39,400 kg to 96,400 kg after the license amendment is approved by Health Canada.

In addition, the company has revised its construction timelines at Zenabis Langley to split Zenabis Langley – Part 2B into two phases: Part 2B and Part 2C. Zenabis expects to submit a license amendment for Part 2B in November 2019 (14,800 kg of licensed annual production capacity) and a license amendment for Part 2C in February 2020 (32,000 kg of licensed annual production capacity) to the extent this is justified by market demand at economic prices.

Zenabis’ total annual cultivation capacity is expected to increase to 143,200 kg of dried cannabis on completion of licensing at Zenabis Langley early in the second quarter of 2020.

In a statement, Andrew Grieve, CEO, said the company expects to have 96,400 kg of capacity licensed and operational by the end of 2019, with approval of the Zenabis Langley – Part 2A amendment.

“By early in the first quarter of 2020, we expect to have 111,200 kg of capacity licensed and operational with the approval of the Zenabis Langley – Part 2B amendment,” he added.

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