Overview
We were approached by the management group of Zenabis during the merger of Sun Pharm Pharmaceutical and Bevo Argo. As a newly formed company, they had a long list of crucial tasks to complete if they were to reach their objective of becoming one of the world’s largest LP.
Chief among these challenges was the need to transform agri-propagation greenhouses into massive cannabis producing spaces, complete a number of projects unique to the industry, and transition out of their parent company.
Process – Transition Plan
As Zenabis became a publicly traded company and its own entity, the original parent company, Monark Group, needed to be transitioned out of Zenabis and completely separated. Additionally, Sun Pharm’ reverse takeover of Bevo Farms required the transitioning in of Bevo Farms to the extent necessary into Zenabis.
In order to seamlessly and successfully extricate Zenabis from Monark and also conduct any necessary work to integrate as necessary with Bevo Farms, Virtus Groups assisted and oversaw Zenabis staff in the organization of the transition planning.
Virtus Groups identified key required transition activities for all relevant business areas, including Accounting, Finance, Human Resources, and IT. We also identified areas where issues may arise before taking mitigating action, and developed transition plan documentation to ensure a smooth transition. This enabled Monark Group to be successfully transitioned out of Zenabis and Bevo Farms to be successfully transitioned into Zenabis smoothly.
Process – Facility Conversion Plan
Zenabis needed to convert the Langley Bevo Farms office and greenhouse facilities into a space suitable for the production and cultivation of cannabis. In addition to converting the existing greenhouse space, a feasibility study needed to be conducted for future drying, packaging, and warehousing facilities that may need to be constructed.
Virtus Groups identified three sites and delineated a number of phases that would be crucial to the success of the project. These included the initial construction of 2 acres of growing space which was the basis of Site 1, before the remaining 8 acres of Site 1 would be built. Site 2 was identified as the construction of 30 acres of growing space. Site 3/Future Developments was identified as the potential drying, packaging, and warehousing facility construction.
The conversion plan allowed Zenabis to Obtain Health Canada approval of the new facility design and all of their Sites. It also enabled existing Bevo Farms propagation operations to be moved to a new facility immediately.
Outcome
Due to Virtus Groups input and strategic guidance, Zenabis were well placed to commence operations and begin their journey to becoming one of Canada’s largest LPs. Virtus Groups provided the framework which enabled Zenabis to set up a Health Canada-certified cannabis propagation facility and to become a viable public company. Virtus Groups is proud of the role we took in shaping Zenabis’ journey by providing these core project management capabilities.
