Canadian Cannabis Producer's CA$2M Private Offering Led By Chairman & Largest Shareholder
Portfolio Pulse from Nina Zdinjak
Canadian cannabis producer BZAM Ltd. has entered into an engagement letter with Clarus Securities for a private placement of at least 15.38 million units at an issue price of CA$0.13 per unit, aiming to raise approximately CA$2 million. The offering, led by the company's chairman and largest shareholder, is expected to close on October 12, 2023. The proceeds will be used for general corporate expenses and working capital purposes. BZAM shares traded 18.08% lower at $0.11 per share.
October 03, 2023 | 3:13 pm
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BZAM Ltd. plans to raise CA$2 million through a private placement. The news of this offering, along with the current trading price of BZAM shares, may impact the company's stock price.
The announcement of a private placement often leads to a decrease in the stock price due to potential dilution of shares. This, combined with the current trading price of BZAM shares, may negatively impact the company's stock price in the short term.
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