Zenabis Global strikes cannabis deal with Shoppers Drug Mart

Zenabis Global Inc (CVE:ZENA) announced Monday that it has entered into an agreement to become a cannabis supplier to Shoppers Drug Mart (TSE:L).

This is promising news for the company — a licensed producer and distributor of medical and recreational cannabis. It will supply Shoppers Drug Mart with Zenabis-branded cannabis and cannabis oil (when it receives its license to sell oil).

Shares of Zenabis soared Monday afternoon, adding 13% to C$4.52. 

“We are very excited to provide Shoppers Drug Mart with Zenabis products,” said Andrew Grieve, chief executive officer of Zenabis. “This partnership is very important to us and our strategic goals as a company moving forward, as it strengthens our commitment to serving medical patients across Canada.”

The company says the products will be sold only online, as Canadian regulations currently restrict the sale of medical cannabis in retail pharmacies.

Zenabis Global growing

Zenabis Global is a rapidly growing company, having listed on the TSX Venture Exchange in January, after a reverse takeover between Bevo Agro and Sun Pharm Investments.

It holds a total footprint of 3.5 million square feet in land/premises that can be converted into available production capacity in BC, New Brunswick and Nova Scotia.

The company says it is aiming to potentially become one of largest licensed producers of cannabis in the world, by square feet of production space.

In January, Zenabis Global announced it had entered into a credit agreement with a major Canadian chartered bank for a C$51 million credit facility.

The company now has distribution relationships with government and third-party retailers/distributors in New Brunswick, Nova Scotia, British Columbia, Saskatchewan, Manitoba, Prince Edward Island and the Yukon.

Shoppers Drug Mart major brand

Shoppers Drug Mart is one of Canada’s most identifiable brands and one of the largest pharmacy chains in Canada that is a leading dispensing agent.

With more than 1,307 stores across Canada, the company has a deeply entrenched pharmacy network across the country, operating in nine provinces and two territories. It operates under the Pharmaprix name in Quebec.

Shoppers Drug Mart is owned by Loblaw Companies Ltd (TSE:L), Canada’s largest food retailer.

Story by ProactiveInvestors