Green Organic Dutchman Holdings Ltd.
said Wednesday it will merge with BZAM Cannabis in a deal to create the sixth-largest licensed Canadian cannabis producer. Privately owned BZAM Cannabis has one shareholder, who will own 49.5% of the combined company once the deal closes. BZAM CEO Matt Milich and Jordan Winnett, BZAM’s chief commercial officer, will lead the combined company as CEO and COO respectively. The transaction includes up to C$33 million ($24 million) to be paid to BZAM in combined entity shares subject for achieving milestones. The combined company says it expects to generate about C$100 million in revenue in 2023 and about C$10 million in cost savings. Green Organic Dutchman CEO and interim CFO Sean Bovingdon will be CFO of the combined company. Current directors at Green Organic Dutchman will hold five seats on the board of the combined company, while two members will be nominated by GZAM. Shares of Green Organic Dutchman rose 6% on Wednesday. The company has a market cap of about $29 million.
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