With nearly 150 public cannabis companies in Canada alone today, it’s inconceivable to keep track of each one within the frenetic growth industry. But for savvy investors, looking beyond the broader cannabis market for an under-the-radar company may be worth taking the risk.
And Canadian cannabis producer Zenabis Global Inc. (TSXV:ZENA) just might be an interesting play as an unnoticed stock ripe for takeoff.
On May 24, the Vancouver-based company announced it will debut on the Toronto Stock Exchange Monday, while voluntarily getting delisted from the TSX Venture Exchange. Common shares will continued to be traded under the same name “ZENA.”
Newly appointed Zenabis Global CEO Andrew Grieve said a statement the milestone will open the door to a broader range of investors and provide the pot firm improved liquidity.
But what makes the licensed cultivator a potential giant, is its ambitious goals of ramping up production of medical and adult use cannabis to levels similar to the bigger industry players.
The company formed in January with the merger of Bevo Agro, Inc. and Sun Pharm Investments Ltd. By joining forces the combo are now able to operate four large greenhouses in British Columbia with an annual production of 131,000 kg by third quarter. And the total design capacity will allow them to reach nearly 480,000 kg in yearly production.
Lofty goals for a LP that has yet to hit the 900 kg mark in production per month.
Grieve stated last month Zenabis Global’s strategy to reach new milestones would include:
- Becoming one of the largest licensed producers of medical and adult-use recreational cannabis in Canada and securing competitive positions in a number of international markets
- Achieving industrial scale cultivation of top-quality cannabis at a low cost
- Rolling out a large offering of ultra premium, premium and value cannabis products to the market through our significant distribution networks
Bottom line
With a relatively smaller market cap of US$250 million, and the large-scale plans to compete with the bigger Canadian LPs, Zenabis Global could be a stock to watch when it graduates up to the TSX May 27. The new pot firm’s credibility will be tested when it releases its first-ever quarter results on May 30, something investors may use as an early barometer to see if the B.C.-based company is staying on course with its intended goals.
One of the most appealing parts of the equation for investors, is the company remains largely unnoticed in the cannabis space and with Bevo Agro’s massive greenhouse space, and Sun Pharm’s cannabis licenses, it could be a diamond in the rough.
Disclosure: the writer has no stake in Zenabis Global
