Zenabis Global has entered into a letter agreement with a major Canadian licenced producer of cannabis, pursuant to which the Buyer has agreed to purchase $7 million of dried cannabis on delivery terms to be agreed under a cannabis purchase agreement to be negotiated between the parties.
Zenabis has directed the Purchase Amount to be paid to its senior lender, a wholly-owned subsidiary of Sundial Growers Inc., another licenced producer of cannabis, to satisfy its principal repayment obligations of $7 million to the senior lender, which were due on December 31, 2020. The Company also satisfied its other debt obligations which were due December 31, 2020. The Letter Agreement and subsequent Purchase Agreement (or Placement), together with the sale of Bevo Farms Ltd. announced concurrently and the repayments of key debt obligations which were due December 31, 2020, has greatly improved the Company’s liquidity position and overall financial capacity.
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Zenabis
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zenabis.com