Canadian cannabis producer BZAM Ltd. (CSE:BZAM) (OTC:BZAMF) has entered into a definitive share exchange agreement on Tuesday to acquire Final Bell Canada Inc. from Final Bell Holdings International Ltd.
What Happened
Under the terms of the agreement, FBHI, the sole shareholder of FBC, will receive 90 million common shares of BZAM at a deemed price of $0.15 per share, representing approximately one-third of the issued and outstanding shares of BZAM following the closing of the transaction, which is anticipated to occur on or about Dec. 18.
BZAM will also enter into a supply agreement under which FBHI's wholly-owned subsidiary, 14th Round Inc., will continue to provide industry-leading child-resistant packaging, high-tech vaporization hardware, and pre-roll cones to BZAM.
As part of the deal, Greg Boone will join BZAM as president and Jennifer Maccarone will join as VP of operations, the company said on Wednesday.
FBC's chief legal officer Christy Zhou will assume the same role at BZAM, and Lana MacKenzie will also take on a senior role within BZAM. Matt Milich will remain as CEO of BZAM. In addition, FBHI will be entitled to appoint a new member to BZAM's board of directors.
Why It Matters
The combined company will be the Canadian home of some of the most recognizable international brands in the cannabis industry – including Berner's Cookies, Sherbinskis and Wyld.
"This combination places the combined entity as the 5th largest Canadian L.P. on a proforma basis," Robert Meyer, FBHI CEO said. "BZAM's demonstrated prowess in the Canadian marketplace, coupled with our brand portfolio and packaging and hardware innovation are a recipe for continued growth with many competitive advantages."
BZAM' Milich seconded Meyer, calling FBHI "an invaluable strategic shareholder" to the company.
"This transaction combines BZAM's cultivation, production, and sales infrastructure with the exceptional portfolio of international brands that Final Bell has brought to market in Canada," Milich said.
BZAMF Price Action
BZAM's shares traded 1.8000% higher at $0.1018 per share after the market close on Tuesday.
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Photo: Courtesy of Iryna Rahalskaya on Shutterstock