BZAM Ltd. (OTCQX:BZAMF) (CSE:BZAM) completed the disposal of Galaxie Brands Corporation via a share purchase agreement 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, between The Green Organic Dutchman Ltd., a wholly-owned subsidiary of BZAM, and its Canadian lender.
The lender and the borrower have agreed to enter into a fifth amendment to the credit agreement to: amend the EBITDA financial covenant to take effect on July 31, 2023; reduce the term portion of the credit facility by the greater of $3 million or 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 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.
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Photo: Benzinga edit with photos by Matthias Zomer on Pexels, squarefrog on Pixabay
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