VANCOUVER, BCFeb. 19, 2021 /CNW/ – Zenabis Global Inc. (TSX: ZENA) (“Zenabis” or the “Company“) declares that its wholly-owned subsidiary, Zenabis Investments Ltd. (“Zenabis Investments“), has filed a petition with the Supreme Court of British Columbia (the “Court“) for a willpower of the quantity required to repay and terminate its fifth amended and restated debenture (the “Debenture“) and to acquire discharges of the Debenture and associated safety. The Debenture is held by a subsidiary (the “Debenture Lender“) of Sundial Growers Inc. (“Sundial“), one other licenced hashish producer and a competitor of Zenabis.

The function of the petition is to search the Court’s willpower of the proper calculation of the quantity required to train an choice to purchase out the amended royalty offered for within the Debenture (the “Amended Royalty“) (which Zenabis contends is nil primarily based on present information and circumstances and the Debenture Lender asserts is $13.7 million), whether or not the Amended Royalty is secured by the identical safety charging the Debenture in addition to associated safety (which the Debenture Lender contends and Zenabis Investments disputes), and whether or not sure prepayment quantities and default charges are payable beneath the Debenture (which the Debenture Lender contends and Zenabis Investments disputes).

As beforehand introduced on January 22, 2021, the Company entered right into a credit score settlement (the “Credit Agreement“) with a Canadian non-public debt fund, as agent on behalf of sure lenders (the “Facility Lenders“), in respect of a dedicated revolving credit score facility in a principal quantity of up to $60 million, topic to borrowing base necessities primarily based on eligible receivables, stock and actual property (the “Credit Facility“). The proceeds of the Credit Facility are meant to be used to prepay the Debenture, which has an excellent principal steadiness of roughly $51.875 million, and for normal company functions. The obligation of the Facility Lenders to make advances beneath the Credit Facility, together with the preliminary advance, is topic to the satisfaction of a variety of situations precedent, together with, as is customary, payout and discharge of the Debenture and the associated safety. Regrettably, after a number of makes an attempt, Zenabis Investments and the Debenture Lender are unable to agree on the quantity required to prepay and terminate the Debenture (the “Payout Amount“) and discharge the associated safety.

To date, all quantities owing to the Debenture Lender have been paid. In early January 2021, Zenabis Investments obtained discover from the Debenture Lender alleging quite a lot of defaults beneath the phrases of the Debenture. None of the alleged defaults are for failure to make funds of principal or curiosity. As beforehand introduced on January 6, 2021, the Company believes the Debenture Lender’s allegations of default to be spurious and with out benefit and to have been an ill-disguised try to circumvent a good and aggressive course of to purchase the Company by improperly foreclosing the fairness of the Company or compelling Zenabis to enter right into a transaction with Sundial.

Accordingly, Zenabis Investments has filed a petition with the Court to search judicial willpower of the Payout Amount, though there will be no assurances that the Court will rule in Zenabis’ favour on all or any of the problems in dispute or that Zenabis might be ready to entry and draw down all or any quantities beneath the Credit Facility and prepay and terminate the Debenture and discharge all safety thereunder.

About Zenabis

Zenabis is a big Canadian licensed cultivator of medical and leisure hashish. Zenabis employs employees coast-to-coast, throughout services in Atholville, New BrunswickLangley, British Columbia; and Stellarton, Nova Scotia. Zenabis presently has 111,200 kg of licensed hashish cultivation area throughout three licensed services in Canada, along with its hashish import, export and processing three way partnership, ZenPharm, working from Birżebbuġa, Malta.

The TSX has not reviewed and doesn’t settle for duty for the adequacy of the content material of the data contained herein. This press launch incorporates sure “forward-looking statements” and “forward-looking information” as outlined beneath relevant Canadian securities legal guidelines. Forward-looking statements or forward-looking data contain dangers, uncertainties and different elements that would trigger precise outcomes, performances, prospects and alternatives to differ materially from these expressed or implied by such forward-looking statements. Forward- trying statements or forward-looking data will be recognized by phrases comparable to “anticipate”, “intend”, “plan”, “goal”, “project”, “estimate”, “expect”, “believe”, “future”, “likely”, “may”, “should”, “could”, “will” and related references to future durations. All statements apart from statements of historic reality included on this launch are forward-looking statements, together with, with out limitation, statements concerning the power of Zenabis to drawdown quantities beneath the Credit Facility. There will be no assurance that such statements will show to be correct and precise outcomes and future occasions might differ materially from these anticipated in such statements or data. Important dangers and elements that would trigger precise outcomes or occasions to differ materially from Zenabis’ plans and expectations embrace availability of the Court, the end result of the dispute over the Payout Amount, the Company’s skill to fund the Payout Amount as decided by the Court, the satisfaction of the situations precedent to the Facility Lenders’ dedication to fund advances beneath the Credit Agreement and the timing thereof, together with well timed receipt of all required third occasion approvals, together with TSX approval of the Commitment Shares, the termination of the Debenture and associated safety, the Facility Lenders’ skill to fund advances beneath the Credit Facility, precise outcomes of enterprise negotiations, advertising and marketing actions, antagonistic normal financial, market or enterprise situations, regulatory adjustments, dangers relating to the COVID-19 pandemic, governmental responses thereto, measures taken by the Company in respect thereto and the affect thereof on the worldwide financial system, capital markets, the hashish business and the Company, and different dangers and elements detailed herein and from time to time within the filings made by Zenabis with securities regulators and inventory exchanges. Any forward-looking assertion or data solely speaks as of the date on which it was made and, besides as could also be required by relevant securities legal guidelines, Zenabis disclaims any intent or obligation to replace any forward-looking assertion, whether or not on account of new data, future occasions or in any other case. Although Zenabis believes that the assumptions inherent within the forward-looking statements are cheap, forward-looking statements aren’t ensures of future efficiency or occasions, and accordingly, traders mustn’t depend on such statements.

SOURCE Zenabis Global Inc.

For additional data: go to:; Media Relations, Email:, Phone: 1-855-936-2247; Investor Relations, E-mail: make, Phone: 1-855-936-2247

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