Bassam Alghanim, chair of Canadian licensed cannabis producer BZAM, is investing five million Canadian dollars ($3.7 million) in the company.
The non-brokered private placement will include 22,222,223 units of the Vancouver-based company for 0.225 Canadian cents, according to a news release.
Alghanim was appointed chairman of the board on Jan. 24.
In a regulatory filing in April, BZAM said the 71-year-old resident of Kuwait held 79,151,586 common shares, representing 50.3% of company.
BZAM and Mississauga, Ontario-based The Green Organic Dutchman Holdings completed a merger in November.
“This investment falls within the estimated range of funding anticipated at the time of the November merger to be required by the company, as we continue to work toward achieving positive EBITDA and free cashflow in the second half of 2023,” Matt Milich, BZAM’s chief executive officer, said in a statement.
The company plans to use the funds for corporate and working capital purposes, according to the news release.