Licensed producer Zenabis Ltd. - which is
merging with Bevo Agro to become
Zenabis Global - has signed an LOI and received a purchase order
from Running Leaf Corporation, one of the first approved
distributors to supply cannabis to the Saskatchewan adult-use market.
VANCOUVER, Oct. 25, 2018 /CNW/ - Bevo Agro Inc. (TSXV: BVO)
("Bevo") and Sun Pharm Investments Ltd. "Sun Pharm" are pleased to
announce that Zenabis has entered into a LOI with Running Leaf
Corporation (Running Leaf) to supply up to 11,858 kilograms to
October 2020 to Saskatchewan adult-use retailers licensed and
approved for adult-use cannabis sales. Zenabis will sell under the
premium Namaste brand. Namaste's products include dried flower,
milled cannabis, and pre-rolls. Running Leaf Corporation is one of
the first wholesale distributors approved to supply cannabis to
licensed Saskatchewan
retailers.
Running Leaf has issued its first Purchase order with Zenabis to
supply its wholesale operation with cannabis for Q4. Zenabis has
fulfilled and will ship its first order upon receipt of a license
from SGLA. Running Leaf has requested an estimated total volume of
up to 11,858 kilograms from Zenabis for its recreational adult-use
distribution needs which both parties expect to increase over as
product demand grows and shifts into new categories such as edibles
(including beverages), and concentrates (including in cartridges).
Running Leaf and Zenabis intend to enter into an exclusive supply
and distribution agreement under which Running Leaf will be the
exclusive distributor of Namaste branded adult-use cannabis in
Saskatchewan, and Running Leaf
will source exclusive strains from the Namaste by Zenabis brand of
Adult Use products. A definitive distribution agreement covering
all the points above is expected to be signed shortly – subject to
Zenabis receipt of license in Saskatchewan by the SGLA.
"We have been looking to partner and align ourselves with
companies that are leaders in the cannabis industry since the
beginning. We know that Zenabis will be one of those companies that
is a leader in the industry and that they will be able to bring a
consistent quality product to the market," said Dawson MacKinnon and Jesiah Wedel, Founders of Running Leaf. "All of
us at Running Leaf are excited to move forward into a partnership
with Zenabis and are prepared to supply Namaste products to the
province of Saskatchewan."
"We are pleased that this Agreement will allow us to introduce
our premium 'Namaste' branded adult-use products to Saskatchewan residents," said Rick Brar, CEO of Zenabis. "This Agreement
furthers our strategy of meeting the demand for Namaste Products in
each Province. In these early days of legalization, we are
discovering that Namaste adult-use Products are in high
demand in British Columbia,
the Yukon, Quebec, New
Brunswick and Nova Scotia.
We look forward to working with Running Leaf and taking advantage
of their considerable expertise in commercial wholesaling and
distribution."
Learn more about Zenabis' premium Namaste brand:
https://www.namaste.com/
As previously announced on announced October 4, 2018, Bevo and
Sun Pharm have entered into an arrangement agreement with
respect to a reverse take-over of Bevo (the "Bevo-Sun Pharm
Transaction"), and announced that the resulting issuer will change
its name to Zenabis Global Inc. ("Zenabis"). Through Sun Pharm's subsidiary licensed producer Zenabis
Ltd. ("Zenabis"), Zenabis Global Inc. will have nearly 3.5 million
square feet of available production space.1
Completion of the Bevo-Sun Pharm Transaction remains subject to
receipt of shareholder and all required regulatory approvals.
Zenabis Key Milestones
- On October 4, 2018 Bevo and Sun
Pharm announced the RTO and the intent of Bevo to change their name
to Zenabis Global Inc. upon completion of the amalgamation
- On October 5, 2018, Zenabis
released a presentation introducing the combined business
- On October 25, 2018, Bevo resumed
trading under the ticker "BVO"
- As of October 25, 2018, Zenabis
has secured purchase orders from government and third party
retailers/distributors in New
Brunswick, Nova Scotia,
British Columbia, and the
Yukon Territory
About Bevo
Agro
Bevo Agro is
North America's leading supplier
of propagated agricultural plants, operating approximately 53 acres
of state-of-the-art greenhouse facilities on 98 acres of land in
Langley, BC and 20 acres of land
in Pitt Meadows, BC. The company
has entered into a binding agreement to acquire 10.4 acres of
greenhouse space on 50 acres of land in Aldergrove, British Columbia (the "Greenhouse
Acquisition"). The Company's main products have been the
propagation of vegetable plants such as tomatoes, peppers,
cucumbers, and other plants such as bedding plants, flowers and
grasses. The Company markets its products to established
greenhouse growers, nurseries and retail outlets throughout
North America.
About Sun
Pharm
Sun Pharm has
significant experience in agriculture, technology, pharmaceutical
sales, consumer packaged goods, international distribution and
brand marketing, with cannabis and cannabis-related purchase orders
from the provinces of New
Brunswick, British
Columbia, Nova Scotia, and
Yukon Territory. Sun Pharm is
currently a privately-held cannabis company which has one of the
largest, federally licensed indoor medical cultivation footprints
in Canada, operating two licensed
production facilities in British
Columbia and New Brunswick,
with a third expected to be coming online shortly in Nova Scotia. These facilities encompass
660,000 square feet of indoor pharmaceutical grade cannabis
production space, strategically positioned on Canada's coasts, facilitating national
distribution and access to international markets. Sun Pharm is currently working towards globally
recognized EU GMP certifications. Sun
Pharm has a management team with decades of experience in
the industry, with expertise in retail consumer packaged goods,
global pharmaceutical sales and manufacturing, quality assurance,
and commercialized cultivation. The growing team has more than two
decades of experience in organic cultivation and distribution of
herbs and nutraceutical products throughout the Americas,
North Africa, and the Middle
East. Sun Pharm's sales team
has more than two decades in product development,
commercialization, and retail and pharmaceutical sales including
international distribution.
This news release contains statements that may constitute
"forward-looking information" within the meaning of applicable
Canadian securities legislation. Forward-looking information may
include, among others, statements regarding the future plans,
costs, objectives or performance of Bevo, or the assumptions
underlying any of the foregoing. In this news release, words such
as "may", "would", "could", "will", "likely", "believe", "expect",
"anticipate", "intend", "plan", "estimate" and similar words and
the negative form thereof are used to identify forward-looking
statements. Forward-looking statements should not be read as
guarantees of future performance or results, and will not
necessarily be accurate indications of whether, or the times at or
by which, such future performance will be achieved. No assurance
can be given that any events anticipated by the forward-looking
information will transpire or occur, including the completion of
the Transaction. Forward-looking information is based on
information available at the time and/or management's good-faith
belief with respect to future events and are subject to known or
unknown risks, uncertainties, assumptions and other unpredictable
factors, many of which are beyond Bevo's control. These risks,
uncertainties and assumptions include, but are not limited to,
those described Bevo's Management's Discussion & Analysis for
the fiscal year ended June 30, 2018,
a copy of which is available on SEDAR at www.sedar.com, and could
cause actual events or results to differ materially from those
projected in any forward-looking statements. Bevo does not intend,
nor does Bevo undertake any obligation, to update or revise any
forward-looking information contained in this news release to
reflect subsequent information, events or circumstances or
otherwise, except if required by applicable laws.
For more information,
Follow Zenabis on Facebook @zenabismmj or on Twitter and
Instagram @Zenabis
Follow Zenabis' adult-use brand, Namaste, on Twitter, Facebook
and Instagram @Namaste.com
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1
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After completion of
planned expansions
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SOURCE Bevo Agro Inc.