Zenabis stock has sunk to a new low this week after the latest update from Zenabis Global (TSX:ZENA) (OTCPK:ZBISF) failed to generate any optimism among investors.
The struggling Vancouver-based cannabis producer endured a disastrous 2019, which saw Zenabis stock collapse from a peak of $4.45 in February to hover around the $0.20 mark in the final three months of 2019. This nightmare year was largely fueled by hugely disappointing financial results, which saw revenue nearly halve to C$12 million in Q3, a performance that was exacerbated by a difficult 12 months for the Canadian cannabis market as a whole. Other issues, such as a failed EU compliance inspection, dragged Zenabis stock down even further.
However, the company has released an update on recent activity that shows that, while still struggling for finance, it has made some strides forward operationally. Zenabis Gobal has said that it exceeded its expected harvest figures at its Atholvill site for the month of November by 2.8%. However, cultivation at its Langley facility was just 20% of overall capacity, but the company said it has identified and addressed a number of ramp-up issues. Zenabis stock is currently trading for just $0.135 on Friday.
Production at that Langley facility remains only semi-complete, with Part 1 and Part 2A both fully licensed and operational at present with a production capacity of 9,900 kg and 39,400 kg, respectively. Zenabis Global has reached substantial completion and submitted a cultivation license amendment on Part 2B, which will have a production capacity of 14,000 kg and is expected to be operational in Q1. Part 2C has a capacity of 32,000 kg, but construction is at a reduced pace, and the company shifted its focus elsewhere. Zenabis shares are down 3.5% today.
In what could provide some optimism for investors in Zenabis stock, the company also announced that it has received its first purchase order from Shoppers Drug Mart. This means that medical cannabis patients will soon be able to purchase Zenabis Global’s premium dried flower, light softgels, and cannabis oil from Shoppers’ online platform, which recently announced the completion of its national roll-out.
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