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by Stockwatch Business Reporter
The Canadian Securities Exchange Composite Index fell 7.53 points to 442.58 Monday. Zenabis Global Inc. (ZENA) sank 11 cents to 57 cents on 2.69 million shares after releasing an operations update for September. Zenabis's stock has had an awful 2019; it has lost over 90 per cent of its value, falling from $6 to today's closing price of 57 cents.
Zenabis grew 2,098 kilograms of marijuana in September, which beat its forecast of 1,731 kg and its August production of 1,996 kg. The company seems to set low forecasts, because it consistently outperforms its estimates while its stock consistently underperforms the market. Based on September's growing, Zenabis is growing marijuana at just over 25,000 kg per year. The cannabis grower claims to have licensed annual growing capacity of 57,000 kg, but evidently much of it is not yet being used. While Zenabis is not using much of its capacity, it had been planning to extend that capacity to 143,200 kg by the end of the third quarter. Well behind that goal, Zenabis now awaits Health Canada's approval for it to increase its annual growing capacity to 96,400 kg. It has pushed its aspirations of reaching 143,200 kg in capacity to the second quarter of 2020.
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