BZAM Ltd BZAMF

Healthcare Cannabis

BZAM Ltd. is a Canadian cannabis producer with a focus on branded consumer goods. Its portfolio includes core brands, such as BZAM, TGOD, ness, Highly Dutch Organic, TABLE TOP, as well as partner brands Jeeter, Cookies, Sherbinskis, Dunn Cannabis, FRESH and Wyld. It operates facilities in British Columbia (BC), Alberta (AB), Ontario and Quebec, as well as retail stores in Regina, Saskatchewan. The Company’s subsidiaries, The Green Organic Dutchman Ltd. (TGOD), BZAM Management Inc., Folium Life Science Inc. and BZAM Cannabis Corp., are licensed producers and hold licenses to produce cannabis plants, cannabis plant seeds, dried cannabis, fresh cannabis, cannabis oils, cannabis topicals, cannabis extracts and edible cannabis and sell such cannabis products within Canada to provincially authorized retailers or distributors and federally licensed entities. Its product portfolio includes categories, such as Infused, Multi-packs, Edibles, Organic, and Craft.

GREY:BZAMF - Post by User

BZAM Ltd

Bullboard Posts

Comment by newGuy01on Jul 19, 2018 10:32am

212 Views

Post# 28338176

RE:RE:The Green Organic Dutchman to Provide Dividend

Also great because the shorts need to cover because they can't be short the SpinCo. Added to that, the fall lockup... the SpinCo structure is going to incentivize people to hold on to their shares I they want to participate based on deal terms. Very sweet transaction. It will be very interesting to see how this competes with the Canopy Rivers entity in the coming months and years.

UserError wrote: Very interesting. I think they went into acquisition/partnership mode in order to add value and then realized that some of the deals went against what their original plans were. This is good because they could have done the deals anyway, and then potentially been scrutinized by investors and the street. This shows good leadership to recognize opportunity, but to approach it in a way that does not jeopardize the original plan.

In the PR I received from the company it also mentions that management has the right to backstop the unit that is being issued. This is a single line that people might not recognize or skim by, but it actually says a lot. This means that if anyone chooses not to exercise their warrant to buy a unit, then management or TGOD can step in and "use the warrant" to make the unit purchase. This shows that management is very keen on the spin-off and think that it could be a valuable post IPO. In short, they are saying, "If you don't want to use your warrant to buy a unit in the new company, then we will!"

The warrant allows you to participate in a financing at $0.50, and then you'll receive a unit in the new company, as well as another warrant for a future price/date (terms not disclosed yet).

I think this is solid news. There is really no downside to doing this and they aren't actually spinning anything out. There are no assets being given to the TGOD Acq other than a $25 million loan that will be repaid before TGOD even needs it. They are sitting on a lot of cash right now and it's not doing anything. They are building out their facilities, but a portion of that cost will not be payable until the final completion of the Valleyfield facility in late 2019.

Putting money to work.