Yet another Canadian cannabis operator is waving the white flag. BZAM Ltd (CSE: BZAM), whom in late 2022 merged with The Green Organic Dutchman, has filed for creditor protection with the Ontario Superior Court of Justice under the Companies’ Creditor Arrangement Act.
The filing applies to both BZAM’s Canadian subsidiaries, as well as to its foreign subsidiaries.
In making its filing, it blamed its situation on margin pressure caused by competition and market fragmentation within the cannabis space, as well as its own financial underperformance and pressure from creditors. The company to date has failed to generate positive cash flow, meaning it was simply a matter of time until such a filing would be necessary.
FTI Consulting has been appointed as monitor for the filing. Debtor in possession financing is to be provided under an existing credit facility, with up to $2.4 million to be made available to the company.
A sale and investment solicitation process is expected to begin for the company on March 8, under which BZAM expects to enter a deal with a company related to a current creditor and significant stakeholder, whom will acquire substantially all of the assets and operations of BZAM.
BZAM last traded at $0.095 on the CSE.
Information for this briefing was found via Sedar and the companies mentioned. The author has no securities or affiliations related to this organization. Not a recommendation to buy or sell. Always do additional research and consult a professional before purchasing a security. The author holds no licenses.
