Canadian cannabis producer BZAM entered into a definitive agreement to acquire Final Bell Canada from Final Bell Holdings International in an all-stock transaction, the companies announced Wednesday.
The combination will put some of the most popular cannabis brands in Canada under one roof, including Cookies, Sherbinskis and Wyld.
Final Bell Holdings International, which is the sole owner of Final Bell Canada, will receive 90 million common shares of BZAM at a deemed price of 15 Canadian cents (11 cents) per share after the transaction closes.
That represents approximately one-third of the issued and outstanding shares of BZAM.
The deal is expected to close around Dec. 18, 2023.
“This transaction combines BZAM’s cultivation, production, and sales infrastructure with the exceptional portfolio of international brands that Final Bell has brought to market in Canada,” BZAM CEO Matt Milich said in a statement.
“This combination also brings in (Final Bell Holdings International) as an invaluable strategic shareholder to the Company, which creates additional opportunities for long term growth and value creation.”
Under the deal, BZAM will also enter into a supply agreement under which Final Bell Holdings International’s wholly owned subsidiary, 14th Round, will continue providing child-resistant packaging, vaporization hardware and pre-roll cones to BZAM.
Robert Meyer, CEO of Final Bell Holdings International, said the combined entity will be the fifth-largest licensed producer in Canada, on a pro forma revenue basis.
Final Bell Corp. has several Health Canada licenses, including for:
- Medical sales
As part of the pending transaction, Final Bell Canada CEO Greg Boone will join BZAM as president.
Jennifer Maccarone will join as vice president of operations. Maccarone is currently chief operating officer of Final Bell, according to her LinkedIn profile.
In the news release, the companies said they expect to achieve “significant” cost synergies through the reduction of selling, general and administrative expenses as well as supply-chain and distribution integration and optimization.
No specific dollar figure was shared with regard to those cost synergies.
Earlier this year, The Green Organic Dutchman Holdings changed its name to BZAM.
The company trades as BZAM on the Canadian Securities Exchange and BZAMF on the over-the-counter markets.