Zenabis Global Inc. (“Zenabis”) is providing an update on its review of its strategic alternatives. As previously announced on December 21, 2020, the Company appointed Echelon Capital Markets (“Echelon”) as its financial advisor. The Company has been working with Echelon to investigate alternatives to maximize shareholder value. On December 30, 2020, Sundial Growers Inc. (“Sundial”), another licensed producer of cannabis and a competitor of Zenabis, announced that it had made a strategic investment in the senior lender to the Company’s wholly-owned subsidiary, Zenabis Investments Ltd. In the Company’s view, the actions were taken by Sundial since December 30, 2020, clearly demonstrate that Sundial made such investment in an attempt to coerce Zenabis into being acquired by Sundial. On December 31, 2020, Zenabis entered into a letter agreement to sell $7 million of dried cannabis to another major Canadian licensed producer of cannabis (the “Buyer”) and used the proceeds received under that letter agreement to make the $7 million repayments to the Senior Lender.
New Cannabis Ventures, 01/06/2021 08:13:00