Zenabis quietly building a Canadian cannabis empire from sea to sea
Company has a total of 400,000 square feet licensed for the production of cannabis in B.C. and New Brunswick, with an additional facility slated to open in Nova Scotia
While high-profile cannabis IPOs and buyouts have dominated news headlines, privately owned Zenabis has been quietly building a diversified Canadian cannabis company that straddles both coasts.
Laser-focused on cannabis production, research, education and product development, the Delta, B.C.-based company leverages strengths in the startup sector, pharmaceutical industry, distribution networks, horticulture and sustainability.
“Publicly traded cannabis companies are faced with a lot of distractions around generating funds and satisfying short-term obligations to shareholders,” says Kevin Coft, chief executive officer of Zenabis. “We’re using the privately owned model so that we can train our focus on getting everything right for the imminent legalization of recreational cannabis in Canada and the eventual prospect of exporting our products to world markets.”
The company’s systematic approach to cannabis is evident in everything from the selection of its executive team to its partnerships, from the location of its state-of-theart facilities to its infrastructure construction. Between Zenabis West in Delta and Zenabis East in Atholville, N.B., it has a total 400,000 square feet licensed for the production and distribution of pharmaceutical-grade medical marijuana.
The Zenabis executive team includes chief operating officer John Kondrosky, an accomplished senior executive with more than 25 years of experience leading complex global medical life sciences organizations in the U.S. and Canada. Prior to joining the company, Kondrosky served as vice-president and general manager at Pharmascience Canada, one of the nation’s largest generic drug manufacturers.
“One of the keys to success for Zenabis will be our ability to rapidly scale up to meet the opportunities in front of us,” says Kondrosky. “That’s not simply a matter of increasing production. It involves careful planning, an unwavering commitment to quality and a relentless focus on execution to ensure that we meet the needs and expectations of our customers with a product we are all proud to put the Zenabis name on.”
Chief science officer Natasha Ryz brings more than 15 years of experience as a medical and nutrition researcher to the company and leads the science team in development of all cannabis products. She is also a member of the International Cannabinoid Research Society and the Canadian Consortium for the Investigation of Cannabinoids.
The company’s dual-coast strategy was deliberate, says Karen Parent, chief quality and compliance officer for Zenabis, who has worked in the regulated cannabis industry since its inception—from seed to sale.
“We wanted to cover the geography of Canada, but we’re also poised to export product to other global markets,” she says.
The company is currently preparing to obtain its good manufacturing practice certification to qualify for entry into the European Union market.
In November 2017, Zenabis was selected by the government of New Brunswick as one of three suppliers of recreational marijuana through the New Brunswick Liquor Corporation. That agreement, worth an estimated $40 million annually, could be the single largest cannabis sale for any B.C.based company.
The company also signed a letter of intent (LOI) with pharmacy retailer Pharmasave, pending Health Canada approval, to become its preferred supplier of medical cannabis across the country. Furthermore, as part of the LOI agreement, Zenabis will help educate Pharmasave pharmacists, technicians and physicians across the country.
By promoting a deeper understanding of cannabis among the general public, educational institutions, government and the medical industry, Zenabis hopes to change perceptions and end the stigma around it.
Zenabis has also partnered with Kwantlen Polytechnic University to develop the curriculum for their Cannabis Professional Series Program. Zenabis staff teaches courses and offers students firsthand insight into the industry. The company has also hired students from the program to work in their Delta facility.
Zenabis has ensured it gets every aspect of its business right. The company partnered with Listuguj First Nation, which invested $3 million in the Atholville facility, to supply workers and eventually operate Listuguj-owned dispensaries providing company products. The company is working with Millbrook First Nation on a similar agreement in relation to its new 255,000-square-foot facility in Stellarton, N.S., which is currently applying for a licence under Access to Cannabis for Medical Purposes Regulations.
Zenabis is also looking to partner with smaller craft growers when Health Canada finalizes the Cannabis Act.
“We see the value of these partnerships, bringing in cultivators of craft products who have perhaps been operating outside of the regulatory framework,” says Parent. “As a private company, we’re not only able to focus on business strategy, but can also work on perfecting partnerships that will help others benefit from the development of the Canadian cannabis sector.”