BZAM announced today that it has entered into a definitive share exchange agreement to acquire Final Bell Canada Inc. from Final Bell Holdings International Ltd, a hardware, packaging and brand development company serving the cannabis industry.
The deal will make BZAM the fifth-largest Canadian LP, including a production facility in Ontario.
Among other ventures, Final Bell has developed nicotine and cannabis vape hardware, co-founded Dosist, a cannabis vape company, in 2016, and operates a cannabis production facility in Ontario under WeedMD’s Starseed brand. Final Bell recently fully acquired Dosist.
The company also lists cannabis brands operating in Canada like Tweed, Spinach, Sherbinskis, Foray, Ace Valley, B40, Beurre Blanc, Kolab, Cookies, and others among its clients. Products from Jeeter Canada at a recent cannabis industry event in Ontario list Final Bell on the packaging. Jeeter Canada’s website also says “Proudly Brought to You by Final Bell Corp.”
Under the terms of the agreement, FBHI, the sole shareholder of FBC, will receive 90,000,000 common shares of BZAM at a deemed price of $0.15 per share, representing approximately one-third of the issued and outstanding shares of BZAM. The transaction is anticipated to occur on or about December 18, 2023, subject to customary closing conditions.
BZAM says it will also enter into a supply agreement in which FBHI’s wholly-owned subsidiary, 14th Round Inc., will continue to provide child-resistant packaging, vaporization hardware, and pre-roll cones to BZAM.
“This Transaction combines BZAM’s cultivation, production, and sales infrastructure with the exceptional portfolio of international brands that Final Bell has brought to market in Canada. FBHI, together with Greg Boone and his team at FBC, have done an incredible job introducing the biggest names in cannabis to Canadian consumers and creating significant value in the process. We are pleased to bring this team and these brands to BZAM,” said Matt Milich, Chief Executive Officer of BZAM. “This combination also brings in FBHI as an invaluable strategic shareholder to the Company, which creates additional opportunities for long term growth and value creation.”(2)
“This combination places the combined entity as the 5th largest Canadian L.P. on a proforma basis”(1)(2) said Robert Meyer, CEO of FBHI. “BZAM’s demonstrated prowess in the Canadian marketplace, coupled with our brand portfolio and packaging and hardware innovation are a recipe for continued growth with many competitive advantages.”(2)
“We are proud of the work we have done to bring many of the leading cannabis brands from California to Canada and I am excited to continue the work of developing those brands under the BZAM umbrella with the incredible resources BZAM brings to the table,” said Greg Boone, CEO of FBC.
As part of the Transaction, Greg Boone will join BZAM as President, and Jennifer Maccarone will join as VP of Operations. FBC’s Chief Legal Officer Christy Zhou will assume the same role at BZAM, and Lana MacKenzie will also take on a senior role within BZAM. Matt Milich will remain as CEO of BZAM. In addition, FBHI will be entitled to appoint a new member to BZAM’s board of directors.
After FBHI completed the acquisitions of 14th Round Inc. and Final Bell Canada Inc. in late 2022, Boone noted the company’s early success in the Canadian market.
“Final Bell’s success in Canada as a co-manufacturer and commercialization partner is reflected not only in how quickly we are climbing the LP rankings – specifically in Cannabis 2.0 products – but also in the innovative SKUs launched with our brand partners.”
14th Round is the company behind many of Final Bell’s vape brand partnerships.
Further to the transaction, the combined Company will be the Canadian home of several well-known cannabis brands – including Cookies, Sherbinskis, and Wyld.
