Zenabis Completes $15 Million First Tranche of $75 Million Convertible Debenture Financing

March 27, 2019

Zenabis Global Inc. (TSXV: ZENA), a licensed cannabis cultivator of medical and recreational cannabis, has completed a bought deal private placement of 15,000 unsecured convertible debentures, at a price of $1,000 per convertible debenture (the “Issue Price”) for gross proceeds of $15,000,000 (the “Offering”). Eight Capital acted as underwriter of the Offering.

Additionally, Zenabis has also entered into an Investment Agreement with three institutional investors (the “Subscribers”), and an Agency Agreement with Eight Capital, pursuant to which Eight Capital has agreed to offer for sale, and the Subscribers have agreed to purchase, an additional 60,000 convertible debentures at the Issue Price, for additional gross proceeds of $60,000,000. The additional debentures will be issuable in four tranches of $15,000,000, at the option of Zenabis.

Wildeboer Dellelce LLP acted for Eight Capital in connection with the Offering with a team that consisted of Perry Dellelce, Peter Volk, Carlye Bellavia, Niall Sweeney and Melissa Smith (corporate/securities).