BZAM Ltd. (CSE:BZAM) (OTCQX:BZAMF) entered into an engagement letter with Clarus Securities under which Clarus will conduct a private placement of at least 15.38 million units at an issue price of CA$0.13 per unit ($0.095) for aggregate gross proceeds of approximately CA$2 million.
“We are incredibly grateful for the support of our chairman throughout the post-merger integration process,” Matt Milich, BZAM CEO stated. “Now that we have effectively completed our post-merger plan, we look forward to the next chapter as we target positive free cash flow in the first quarter of 2024.”
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 CA$0.18 per warrant share for a period of three years from the closing date.
Further to the engagement letter, the agent may offer up to a maximum of 21.15 million units for aggregate gross proceeds of approximately CA$2.75 million and the company has granted the agent an option exercisable in whole or in part, to purchase up to an additional 3.17 million units for a period of 30 days from and including the closing date to cover over-allotments, if any, and for market stabilization purposes. If the over-allotment option is exercised in full, the aggregate gross proceeds of the offering will be around CA$3.16 million.
BZAM plans to use the proceeds of the offering for general corporate expenses and working capital purposes.
The offering is expected to close on or about October 12, 2023, or such other date as may be agreed upon by the company and the agent and is subject to certain conditions including, but not limited to, the receipt of all necessary regulatory approvals, including the approval of the Canadian Securities Exchange.
Price Action
BZAM shares traded 18.08% lower at $0.11 per share at the time of publishing Tuesday morning.
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Photo: Courtesy of Ryan Lange via Unsplash
