Cannabis producer Zenabis reports CA$70 million loss for 2020

British Columbia-based cannabis producer Zenabis Global reported a net loss of 70.5 million Canadian dollars ($56.3 million) for 2020, an improvement over the previous year’s CA$127 million loss.

Net loss from continuing operations was CA$54.9 million, while the loss from discontinued operations was CA$15.6 million, according to the company’s year-end financial statements.

Interest expenses amounted to CA$23.8 million for the year.

By geographic area, Zenabis earned revenue of:

  • CA$55.6 million from Canada.
  • CA$3.7 million from international exports.

In 2019, Zenabis’ Canadian revenue was CA$29 million, and no money was made from exports.

The company reported receiving almost CA$5 million in government subsidies last year.

Zenabis also said shareholders will vote in May on a proposed acquisition by rival producer Hexo Corp.

The two companies announced a definitive arrangement in February under which Hexo will acquire all of Zenabis’ common shares.

The deal is valued at approximately CA$235 million.

Zenabis had CA$5.7 million in cash as of Dec. 31, 2020.

The company’s shares trade on the Toronto Stock Exchange as ZENA.