The Green Organic Dutchman signs deal to merge with BZAM Cannabis
Nathan Eagle | Aug. 4, 2018
AUSTIN — Green Organic Dutchman Holdings Inc. (CVE: GOOG) announced Wednesday that it has entered into a definitive joint venture agreement with BZAM Cannabis Corp. (TSXV: BZA) under which the companies will combine forces to form a new enterprise under the name Green Organic Dutchman BZAM.
Green Organic Dutchman will operate in the cannabis and hemp space under the leadership of CEO Jeff Johnston, who will serve as chief executive officer. BZAM Cannabis will be led by CEO Marc Lustig, whose role will continue following the merger as chairman of the merged company. The new company will be known as Green Organic Dutchman BZAM, with BZAM Cannabis’ shareholders receiving a combined one third of its voting power.
Under the terms of the agreement, the company has agreed to complete the regulatory approvals necessary to form the joint venture, including completing the required filing with Health Canada and obtaining approval by the Ontario Securities Commission. Green Organic Dutchman and BZAM have agreed to the formation of the joint venture in a bid to avoid having to file for a management buyout of BZAM.
The companies will be expected to complete a management buyout of BZAM shareholders and/or seek shareholder approval for the joint venture.
Green Organic Dutchman will continue to maintain its board and management team.
“This combined structure will significantly enhance our ability to further invest in the future of our business and will accelerate the path to market for our best-selling brand, Green Organic Dutchman cannabis oil and terpene-infused tinctures. We are pleased to have received strong support for this strategic initiative from our shareholders,” said Jeff Johnston, CEO Green Organic Dutchman.
“We have had a long history of building strong relationships with existing cannabis operations across our global footprint. In bringing Green Organic Dutchman BZAM together with our existing business, we will be able to accelerate our growth in North America and significantly expand our reach into multiple regions across the world,” added Lustig, CEO BZAM Cannabis.
The deal with Green Organic Dutchman BZ