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The Green Organic Dutchman (OTC: TGODF) shares popped on the news that it bought privately owned Canadian-based BZAM Holdings (BZAM) in an all-stock deal. BZAM shareholders will end up holding roughly 49.5% of the combined company. The deal is expected to close on Nov. 8, 2022.  Shares jumped by 30% to sell at roughly six and half cents.

The combined company is estimated to be the sixth-largest Canadian cannabis company based on June to August 2022 retail sales. Together, the combined company forecasts net revenue of at least $100 million for the calendar year 2023 and adjusted EBITDA positive by mid-2023.

TGOD and BZAM generated $30.2 million and $32.2 million, respectively, of net revenue in calendar 2021, and $31.6 million and $32.7 million, respectively, of net revenue from January to September 2022. The combined company generated $85.7 million pro forma unaudited net revenue for the 12 months leading to September 2022. BZAM and TGOD said in a statement that they have experienced one of the fastest growth rates in the Canadian cannabis market.

BZAM’s current Chief Executive Officer Matt Milich, and Chief Commercial Officer Jordan Winnett, will lead the company, along with TGOD’s current CEO and Interim Chief Financial Officer, Sean Bovingdon, who will take the role of CFO. The board of directors will consist of seven members including five members from TGOD’s existing board of directors, and two members nominated by BZAM.

“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 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.”

BZAM Cannabis is a multi-licensed Canadian cannabis producer focused on branded consumer goods, cultivation, processing, and people. The BZAM Cannabis family includes core recreational cannabis brands BZAM, -ness and TABLE TOP, and partner brands Dunn Cannabis, FRESH, SuperFlower, and Snackbar. The company operates facilities in the Lower Mainland, West Kootenay, and Vancouver Island in British Columbia. Its sister companies operate facilities in Edmonton, Alberta, as well as a retail BZAM store in Winnipeg, Manitoba and Regina, Saskatchewan.

The merged companies will have local production presence in the largest provinces, and over 400 listed SKUs across Canada. The combined company’s facilities are right-sized to demand without the need for material capital expenditure. The facilities offer complete, scalable capabilities for the Combined Entity’s broad range of cannabis products.

“We are looking forward to bringing together TGOD’s organic flower and hash with our crowd pleasing vapes and the exceptional flower of our craft partners, including Dunn Cannabis and FRESH,” added Milich. “Together, we expect to expand on what we have each accomplished so far, as we build a strong, EBITDA-positive cannabis company.”

Green Organic Dutchman Merges With BZAM on Green Market Report.