Canadian licensed producer Zenabis, who recently merged with Bevo Agro Inc. via a reverse takeover, saw its share price surge more than 70% in the first day of trading following the merger, according to a press release.
Zenabis’ parent company Sun Pharm is forming a new company with Bevo Agro Inc. called Zenabis Global Inc. that will fuse the business model of a cannabis LP with agricultural plant propagation. Bevo Agro’s current agricultural business model will not be abandoned but instead shifted into other greenhouse facilities as Zenabis converts the company’s previous facilities into cannabis production centers.
Zenabis was producing only cannabis flower but is expected to expand into concentrates, oils, and pre-rolls when it opens its third production facility in Nova Scotia sometime next year. The company is attempting to scale its growth in time with the development of Canada‘s cannabis market.
Though trading of the shares has opened, the merger will not technically be complete until sometime in December. While all majority shareholders involved have finalized the deal, it still needs to be approved by TSX Venture Exchange and the British Columbia Supreme Court.
The merged companies’ ticker symbol is BVO.