The Green Organic Dutchman Holdings, Ltd. (OTCQX: TGODF) (CSE: TGOD) is a Canadian sustainable cannabis company, which grows its product using certified organic processes including living soil, filtered rainwater, natural inputs and sunlight. The company operates four key brands: The Green Organic Dutchman, Highly Dutch Organics, Ripple by TGOD and Cruuzy Brands. U.S.-listed shares of the cannabis company shot up 47% during trading on Wednesday, October 19, 2022. Over the past thirty days, TGOD has seen average daily volume of 505,509 shares. However, volume of 4.24 million shares or dollar volume of around $310,792, exchanged hands during the day’s trading.
Shares of TGOD surged after the company announced it has entered into a definitive agreement to merge via a share exchange with BZAM Holdings, Inc., a premium cannabis producer located out of Vancouver, British Columbia, Canada. BZAM is considered to be among the top quality producers of cannabis across the country. The company operates its core brands of BZAM-ness and TABLE TOP and partnership brands such as Dunn Cannabis, FRESH, SuperFlower and Snackbar.
Under the terms of the share exchange agreement, TGOD will acquire all issued and outstanding shares of BZAM, in exchange for common shares of TGOD. Once the transaction is completed, BZAM shareholders will own 49.5% of the combined entity shares and have the ability to obtain further ownership through certain financial milestones.
If the merger is completed, the combined entity will become the sixth largest Canadian Licensed Producer (LP) with a portfolio of established brands accounting for over 400-listed SKUs and production facilities across the largest provinces in the country. TGOD’s market strength in Quebec and Ontario paired with BZAM’s focus across western Canada gives the combined entity a solid footprint in the country with room to expand further.
On a combined basis, the entity is estimated to generate net revenues of at least C$100 million during calendar year 2023 and a positive adjusted EBITDA reading by mid-2023. Combination synergies are estimated to generate at least C$10 million in annualized savings from costs of goods sold (COGS) and sell, general & administrative (SG&A) costs.
BZAM’s current CEO, Matt Milich and CCO, Jordan Winnett will take over the combined entity’s CEO and CCO roles, respectively. TGOD’s current CEO and interim CFO, Sean Bovingdon, will take the CFO role of the combined entity.
“This is an exciting day for both companies, for our employees, and for our consumers. We are bringing together two rapidly growing companies that share a passion for cultivation, innovation and brand development,” said Mr. Bovingdon. “Our highly complementary businesses in terms of production footprints, products and distribution networks create a Combined Entity with a leading branded product portfolio along with significant synergies across our operations.”
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