Troubled cannabis producer Zenabis Global Inc. says it has entered exclusive merger talks with “another significant licensed cannabis producer.” Zenabis said it wouldn’t disclose further details. Zenabis’ announcement in a Wednesday morning news release also included a swipe at competing producer Sundial Growers Inc., which made a “strategic investment ” to buy the senior secured debt of Zenabis subsidiary Zenabis Investments Ltd. on Dec. 30. In a news release issued 30 minutes before Zenabis’ Wednesday announcement, Sundial said it had issued a notice of default to Zenabis on that debt, despite receiving a principal repayment worth 7 million Canadian dollars ($5.5 million) on Dec. 31. “Zenabis is disputing said defaults,” said Sundial. Zenabis characterized Sundial’s December investment as “an attempt to coerce Zenabis into being acquired by Sundial,” and said it had been negotiating an extension of the principal repayment with its senior lender just before Sundial bought the debt.

Marijuana Business Daily, 01/06/2021 12:47:00

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