BZAM Ltd. Announces $2 Million Brokered Private Placement Led by Chairman and Largest Shareholder

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VANCOUVER, British Columbia and TORONTO, Oct. 02, 2023 (GLOBE NEWSWIRE) -- BZAM Ltd. (the “Company” or “BZAM”) (CSE: BZAM) (US-OTC:BZAMF), a leading Canadian cannabis producer, has entered into an engagement letter with Clarus Securities Inc. (the “Agent”), pursuant to which the Agent has agreed to conduct, on a “best-efforts” marketed basis, a private placement (the “Offering”) of at least 15,384,615 units (each, a “Unit”) at an issue price of C$0.13 per Unit (the “Offering Price”) for aggregate gross proceeds of approximately C$2,000,000. The Units will be offered by way of the listed issuer financing exemption under Part 5A of National Instrument 45-106 – Prospectus Exemptions (the “Listed Issuer Financing Exemption”).

Matt Milich, the Chief Executive Officer of the Company, stated: “We are incredibly grateful for the support of our Chairman throughout the post-merger integration process. Now that we have effectively completed our post-merger plan, we look forward to the next chapter as we target positive free cashflow in the first quarter of 2024.”

Each Unit will consist of one common share (each, a “Share”) and one Share purchase warrant (each, a “Warrant”), with each Warrant entitling the holder thereof to acquire one Share (each, a “Warrant Share”) at an exercise price of C$0.18 per Warrant Share for a period of three years from the Closing Date (as defined below).

Further to the engagement letter, the Agent may offer up to a maximum of 21,153,846 Units for aggregate gross proceeds of approximately C$2,750,000 and the Company has granted the Agent an option (the “Over-Allotment Option”), exercisable in whole or in part, to purchase up to an additional 3,173,076 Units for a period of 30 days from and including the Closing Date to cover over-allotments, if any, and for market stabilization purposes. The Agent shall be under no obligation whatsoever to exercise the Over-Allotment Option in whole or in part. If the Over-Allotment Option is exercised in full, the aggregate gross proceeds of the Offering will be approximately C$3,162,500.