A little over two years after coming together in a reverse takeover, cannabis grower Zenabis and 91原创-based greenhouse operation Bevo are going their separate ways.
A press release by Zenabis on Jan. 4 said that the company had entered into an agreement with 91原创 Propagation and Floral Company that included selling all of Zenabis鈥檚 shares in its subsidiary, Bevo Farms.
The deal with 91原创 Propagation includes funding for some of Zenabis鈥檚 liabilities and a guarantee for Bevo鈥檚 existing debt by 91原创 Propagation.
Rent amounts Zenabis owes to Bevo will also be reduced significantly.
The upshot of the deal, according to Zenabis, is that it will keep its core business of cannabis production, while disposing of Bevo鈥檚 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鈥檚 91原创 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鈥檚 financial position and significantly reduce the amount of debt it owes. Zenabis will functionally reduce its debt load by $42.5 million, according to the announcement.
Bevo and Zenabis went into business together in 2018, when Sun Pharm Investments, a medical marijuana firm, reinvented itself as Zenabis to take advantage of cannabis legalization.
READ MORE: 91原创 greenhouse announces move into marijuana growing
Bevo continued its business of propagating hothouse vegetables and flowers while building out more greenhouse space for cannabis, and even experimenting with vertical farming of hemp.
