Two Canadian cannabis producers are joining forces: The Green Organic Dutchman (TGOD), a publicly traded operator based in Toronto, and BZAM Cannabis, a privately held operator based in Vancouver. The resulting business is expected to be the sixth largest cannabis cultivation company in Canada.

All told, the two businesses generated a total of $85.7 million “pro forma unaudited net revenue” for the past 12 months.

“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,” TGOD CEO Sean Bovingdon said in a public statement. “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.”

Those synergies include cost-cutting efficiencies up and down the supply chain once the companies combine. For example, BZAM’s British Columbia facility will supply the combined company with THC distillate and extraction capabilities to build on the rising demand for such products under Canada’s ongoing “cannabis 2.0” market rollout. The company that emerges from this business combination is expected to place more than 400 SKUs on shelves across Canada.

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