This Cannabis Company Chairman Is Betting On It! Plans To Invest Extra $3.7M In The Business

BZAM Ltd. BZAMF BZAM announced that it intends to complete a non-brokered private placement of up to approximately 22.22 million units of the company at an issue price of CA$0.225 per unit for gross proceeds of up to approximately CA$5 million ($3.7 million).

Matt Milich, CEO, stated: "We are grateful for the continued support of our chairman and largest shareholder. This investment falls within the estimated range of funding anticipated at the time of the November merger to be required by the company, as we continue to work toward achieving positive EBITDA and free cashflow in the second half of 2023."

Each unit will consist of one common share and one share purchase warrant, with each warrant entitling the holder thereof to acquire one share at an exercise price of CA$0.40 per warrant share for a period of three years from the closing date .

The company intends to use the proceeds of the offering for general corporate and working capital purposes.

Subject to customary closing conditions, including, if applicable, regulatory and CSE approvals, it is anticipated that the offering will be completed on or about May 31, 2023, or such other date as may be determined by the company.

The securities issued or issuable in connection with the offering (including the units, shares, warrants, and warrant shares) will be subject to a statutory hold period of four months and one day from the date of issuance in accordance with applicable securities legislation.

As the company's chairman, who is an insider and largest shareholder of the company, will purchase all of the units issued as part of the offering, the offering is considered to be a "related party transaction" for purposes of Multilateral Instrument 61-101 – Protection of minority security holders in special transactions.

Photo: Benzinga edit with photo by Kindel Media on Pexels

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