BZAM intends to complete a non-brokered private placement of up to approximately 22,222,223 units of the company at an issue price of C$0.225 per Unit for gross proceeds of up to approximately C$5,000,000.
Matt Milich, CEO, stated: "We are grateful for the continued support of our Chairman and largest shareholder. This investment falls within the estimated range of funding anticipated at the time of the November merger to be required by the company as we continue to work toward achieving positive EBITDA and free cash flow in the second half of 2023."
Each unit will consist of one common share and one share purchase warrant, with each warrant entitling the holder thereof to acquire one share at an exercise price of C$0.40 per warrant share for a period of three years from the closing date.
The company intends to use the proceeds of the offering for general corporate and working capital purposes.
Subject to customary closing conditions, including, if applicable, regulatory and CSE approvals, it is anticipated that the offering will be completed on or about May 31, 2023, or such other date as may be determined by the company. There can be no assurances that the offering will be completed on the terms set out herein, or at all, or that the proceeds of the offering will be sufficient for the purposes of the company set out herein.
The securities issued or issuable in connection with the offering (including the units, shares, warrants, and warrant shares) will be subject to a statutory hold period of four months and one day from the date of issuance in accordance with applicable securities legislation.
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