Zenabis Global Inc (OTCMKTS:ZBISF) reported an increase of 18% in revenues in Q1 2020. It is on the backdrop of surging cannabis sales. The company expects to report continued growth going forward because of an improved footprint in the global markets and enhanced penetration into provincial markets. Zenabis has achieved cost savings of $10 million in each quarter and helps to grow business. It expects to realize the benefits of cost reductions in Q2 2020.
Developments in Q1
Zenabis produced vape cartridges for use with Era vapor devices of Pax Labs Inc initially. The company has sold vape cartridges from the initial run to three regional distributors.
Health Canada grants an export license to Zenabis
Health Canada has issued an export license to help Zenabis export cannabis in Q1 to the EU. The company shipped the first consignment to a partner in Malta in April 2020. It also fulfilled the PO received from an Israel based certified importer for bulk dried cannabis in May 2020.
As part of cost-cutting measures, Zenabis downsized its workforce by 22% at its head office and cannabis operations. The company’s Atholville facility has received nod of EU-GMP and expects to begin exports to the EU in Q3 2020. It also received approval from Health Canada for additional processing and growing regions at Zenabis Langley.
CEO of Zenabis, Kevin Coft, said the company is proud to receive EU-GMP approval together with Natrix Sciences Ltd, a partner based in the EU, and ZenPharm Ltd. The EU-GMP nod allows the company to ship medicinal cannabis in large quantities to the EU. ZenPharm can satisfy the demand of European customers, with high-quality medical-use cannabis. Zenabis holds a stake of 43.5% in ZenPharm, which is a JV formed with Natrix.
Annual packaging capacity – 7000 kg
The annual packaging capacity of ZenPharm is 7,000 kg. The company has to improve the packaging capacity to satisfy the demand in the EU as per shareholders’ undertaking. ZenPharm is negotiating with several potential clients in the EU to begin shipments.
Vice President (Strategic Development) of Zenabis, Olen Vanderleeden, said the association with ZenPharm provides an opportunity to sell medical cannabis in the EU and boost revenues.
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