BZAM Ltd BZAMF

Exact words from Investor Relations:

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"Quote" In February of 2019 when further capital was injected to redesign and reengineer the facilities to meet the demands of organic cultivation it was communicated that funding would then include a normal course bank facility. It was in October of 2019 that we were made aware by the bank that the facility would be available but we wouldnt be able to draw upon it until later in 2020. Since the redesign also pushed out revenue and production this didnt meet our needs. In the interest of disclosure we communicated the need for alternate funding to the market at that time. That being said 2020 will be a transformational year for TGOD as we ramp up our production and offer a diverse range of product into the 2.0 market. We are now in every province with the exception of two with product and we are working with Quebec to deliver product to meet their demand. As you are aware we changed our production plans in late 2019 to reflect the slower rollout of stores in the Canadian market and the slow ramp up of the medicinal market in Internationally. In the near term we will be launching products in the 2.0 market beginning with our lineup of infusers and vapes, with our tea line to follow in late Q1 or early Q2. Please see the new product offering here. We have also submitted our licence amendment for the processing facility in Ancaster and for the hybrid greenhouse in Valleyfield which we expect to hear back on in the coming weeks. These approvals will allow us to begin cultivation out of the hybrid greenhouse in Valleyfield and process through our Ancaster facility. Also of note, we are applying for the entire Valleyfield facility despite only planning to be in the first six zones in 2020. This will provide the optionality to add rooms without needing further approvals. We have found that being nimble is paramount in this nascent industry and are working to ensure we remain as nimble as possible. If Ontario opens more stores than expected or International markets expand faster than we have forecast we want to be able to add production without filing delays. Our EU GMP application, completed and filed in August of 2019, could be another near term catalyst. We expect to be hearing back from the regulator regarding the status of the application by the end of Q1 or early Q2. If approved this could provide significant running room. The production path as laid out is what will drive TGOD towards OP CF positive by the end of Q2. Regards, Shane