The cannabis company continues to be a solid target for investors
Investors involved in the cannabis world should pay attention to the latest moves of The Green Organic Dutchman. The global sustainable marijuana company and leading producer of premium cannabis brands has recently announced the release of escrowed shares and the issuance of new shares. This move is pursuant to certain earn-out provisions related to the firm’s acquisition of all outstanding and issued shares of Galaxie Brands Corporation in mid-November 2021.
As a result, Green Organic Dutchman has released 1,142,857 shares of common stock held in an indemnification escrow account at the closing of the transaction. In addition, the remaining shares of the company’s common stock held in the indemnification escrow account will be returned to the treasury for cancellation at a later date. Furthermore, pursuant to the terms of the definitive agreement related to the acquisition, a total of 1,120,226 shares of common stock will be issued to Green Organic Dutchman’s largest shareholder.
These issued and outstanding shares of BZAM common stock will be valued at an estimated issue price of $0.596 per BZAM share. Such shares will be issued in reliance on various prospectus exemptions available under securities legislation.
They will remain subject to a statutory hold period of four months plus one day. It has been made clear that the cannabis company is relying on the exemptions from the minority shareholder approval requirements available in MI 61-101 and the formal valuation. The company assures that it remains committed to cultivating a better tomorrow by producing its products responsibly, thereby significantly mitigating the impact on the environment.