Zenabis, one of the big new players in commerical cannabis, has completed its sale of former partner sub-division Bevo, a longtime Langley greenhouse grower.
The sale was first announced at the end of December last year. This week, Zenabis announced that the sale had completed as of march 11, with Langley Propagation and Floral Company taking ownership of the Bevo Farms assets.
The cash proceeds to Zenabis are approximately $8.79 million for the sale, and Langley Propagation will own all of Bevo’s stock shares.
READ MORE: Cannabis grower Zenabis sells Langley-based Bevo
The upshot of the deal, according to Zenabis, is that it will keep its core business of cannabis production, while disposing of Bevo’s plant propagating business. Bevo has long been primarily in the business of starting seedlings for other growers, including peppers, tomatoes, cucumbers, lettuce, and flowers.
Zenabis’s Langley operation, a sizable greenhouse-based premises off Glover Road in the Milner area, will continue. Bevo owns the facility and leases it to Zenabis.
Finally, it will improve Zenabis’s financial position and significantly reduce the amount of debt it owes. Zenabis was expected to reduce its debt load by $42.5 million, according to the December announcement.
Zenabis currently has 111,200 kg of licensed cannabis cultivation space across three facilities including the greenhouses in Langley and two centres in New Brunswick and Nova Scotia. It also has a cannabis import, export, and processing joint venture, ZenPharm, operating from Birżebbuġa, Malta.