Zenabis, through its subsidiary Bevo, completed the acquisition of Topgro for consideration of $12 million.
The Topgro Acquisition includes 10.4 acres of greenhouse on 50 acres of land in Aldergrove, British Columbia, which Zenabis intends to use for vegetable and floral propagation. This will ensure continuity for existing Bevo propagation customers while the first ~10 acres (435,600 sq. ft.) of the Zenabis Langley facility is converted for cannabis cultivation.
To fund the acquisition, and as previously released on January 21, 2019, Zenabis, through its subsidiary Bevo, entered into a credit agreement for an aggregate of $51,000,000 in credit facilities. On January 22, 2019, $33.7 million was drawn on the facilities for the purpose of refinancing existing debt and acquiring Topgro. $13 million of the facilities remain available for the conversion of Zenabis Langley and Topro propagation conversion.
“The acquisition of Topgro solidifies Zenabis’ commitment to our existing propagation customers and enables us to immediately commence conversion of the Langley facility for the purposes of cannabis production,” said Andrew Grieve, CEO of Zenabis. “We are excited to move forward with our plans for greenhouse cultivation in Langley, which is a key aspect of our growth strategy.”