- Zenabis Global (TSX:ZENA) has provided a product and strategy update on its Cannabis 2.0 products
- As part of the strategy, Zenabis entered into a production agreement with HYTN Beverages for the manufacture of cannabis-infused drinks
- The company has also completed and shipped its first production run of PAX Era vape cartridges
- The Zenabis Atholville extraction lab is currently operational and expected to reach steady state in March
- Shares in the company are currently up 4.17 per cent to C$0.12, with a market cap of C$43.46 million
Zenabis Global (TSX:ZENA) has provided an update on its Cannabis 2.0 product strategy and execution.
With several facilities around Canada, Zenabis is a licensed cultivator of medical and recreational cannabis.
A key part of the company’s strategy was an agreement signed in December 2019 with HYTN Beverages.
The agreement outlined the manufacture and distribution of cannabis-infused sparkling water drinks under the HYTN brand.
HYTN is currently finishing the installation of a production line at Zenabis’ Stellarton facility, with an initial capacity of 4,400 cans per day.
In turn, Zenabis will provide the necessary cannabinoid extracts to formulate the drinks and provide nationwide distribution.
“We are working with a partner that has experience successfully formulating new beverage options in the Canadian market,” said Zenabis CEO, Kevin Coft.
“The combination of HYTN’s beverage manufacturing expertise with our high-quality cannabis extracts allows Zenabis to provide consumers with a new line of high-quality cannabis-infused beverages.”
The first shipment of the four initial flavours is expected in the second quarter of 2020.
“This will make Zenabis one of the first licensed producers to bring cannabis-infused beverages to the Canadian market,” he continued.
Zenabis has also completed its first production run of PAX Era-compatible vape cartridges.
The initial supply was immediately sold to three of the company’s provincial partners, and shipping commenced on February 5 this year.
The company is one of only five producers licensed to manufacture the cartridges, and originally signed an agreement with PAX in 2019.
“We believe vaporizers are the centrepiece product line in this first phase of Cannabis 2.0,” added Mr. Croft.
“With our Atholville extraction lab up and running, we are gearing up for more orders and production.”
The Atholville facility currently processes 400 kg of biomass each month.
However, this volume is expected to increase to 1,250 kg once the lab reaches steady state production in March.
Mr. Coft believes that a partnership-driven approach to the first phase of Cannabis 2.0 is critical to success.
He concluded by saying that Zenabis is “able to take advantage of industry-leading expertise, respond to market sentiment quickly, and get to market with capital-light investment.”
Shares in the company are currently up 4.17 per cent to C$0.12, with a market cap of C$43.46 million.