Zenabis stock is soaring today after Zenabis Global (TSX:ZENA) (OTCPK:ZBISF) issued an update on its cannabis 2.0 strategy, in which it said the first shipments of its cannabis-infused sparkling water beverages are expected in Q2 2020.
Zenabis Global penned an agreement with HYTN Beverages back in December to produce a range of cannabis-infused beverages at its Stellarton facility. HYTN is currently in the process of installing a production line at the Stellarton site, which is expected to be completed by March, with Zenabis supplying the required cannabis extracts and distribution network. A range of infused sparkling-water drinks in four different flavors will be the first to go to market. Zenabis stock is up 5% today following the update.
“We are working with a partner that has experience successfully formulating new beverage options in the Canadian market. 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,” said CEO Kevin Coft, “Initial indicative demand from our provincial partners is strong and we hope to have these products into their supply chains in Q2 2020.” Zenabis stock is currently trading for $0.125.
Can Cannabis 2.0 Transform the Fortunes of Zenabis Stock?
Zenabis Global’s proposed timetable for the launch of its beverage line would make it the first pot firm in Canada to bring these products to market after Canopy Growth (TSX:WEED) (NYSE:CGC) was forced to delay the launch of its line in January due to scaling issues. However, Zenabis has already entered the cannabis 2.0 space, having recently completed its first shipment of PAX Era Vapes Pods to provincial counterparties.
Mr. Coft believes that the company’s partnership-focused approach is both “prudent and scalable” in a way that will allow the company “to take advantage of industry-leading expertise, respond to market sentiment quickly, and get to market with capital-light investment.” With Zenabis stock down a massive 95% in the last year, investors are eagerly looking to the 2.0 market to help turn their fortunes around.
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