BZAM Ltd., a leading Canadian cannabis producer, is pleased to announce that, as planned following the Company’s recent merger in November 2022, it has now completed the disposal of Galaxie Brands Corporation via a share purchase agreement (the “Transaction”) whereby it will sell all of the issued and outstanding shares in the capital of Galaxie to a third party for $556,522 less usual post closing adjustments. This is materially consistent with the valuation of Galaxie assets and liabilities that were deemed “Held for Sale” in the Company’s most recent interim unaudited financial statements.
In conjunction with the Transaction, the Company and its Lender agreed to amend the terms of the amended and restated credit agreement dated September 29, 2021, as amended (the “Credit Agreement“), between The Green Organic Dutchman Ltd. (the “Borrower“), a wholly-owned subsidiary of BZAM, and its Canadian lender (the “Lender“).
The Lender and the Borrower have agreed to enter into a fifth amendment to the Credit Agreement (the “Fifth Amendment“) to: (i) amend the EBITDA financial covenant to take effect on July 31, 2023; (ii) reduce the term portion of the credit facility by the greater of (a) $3 million or (b) fifty percent (50%) of the net proceeds of the sale of the Company’s Cedar Way property and the Midway property, with increased availability under the revolving portion of the credit facility by same amount; and (iii) make certain prepayments on the term portion of the credit facility commencing on or after September, on a reasonable monthly basis to be determined by the Agent. For clarity, this amendment does not result in a reduction of availability on the credit facility; any reduction in the term portion of the facility is added to the availability under the revolving portion of the facility. All other terms of the Credit Agreement will remain materially consistent.
About BZAM Ltd.
BZAM Ltd. is a leading Canadian cannabis producer with a focus on branded consumer goods, innovation, quality, consistency, integrity and transparency. The BZAM family includes core brands BZAM™, TGOD™, ness™, Highly Dutch Organic™, TABLE TOP™, and partner brands Dunn Cannabis, FRESH and Wyld. BZAM operates facilities in BC, Alberta, Ontario and Quebec, as well as retail stores in Winnipeg, Manitoba, and Regina, Saskatchewan. For more information on BZAM Ltd., please visit www.bzam.com.
