Replies to post #7955 on Bzam Ltd (BZAMF)

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From The Final Prospectus Filed December 13, 2019...

The Company’s cash position as at November 30, 2019 was $19.7 million including $14.7 million in restricted cash related to construction cost holdbacks. The Company estimates that the Company’s working capital
as at November 30, 2019 is a net liability of $40.7 million mainly as a result of accounts payable for construction. The construction payables that are the main component of the working capital deficit are expected to be settled over the first nine months of 2020 under negotiated terms with suppliers. This will require the proceeds of the first tranche of the credit facility as well as the generation of positive operating cashflow; if the first tranche of the credit facility is not received and/or if positive operating cashflow is not achieved, the Company will require additional sources of financing in order to settle the working capital deficit. See “Risk Factors – Dilution”. The net proceeds of
the Offering, together with other sources of available funds, are expected to fund operations until the end of February, 2020, at which time the Company will require additional capital to fund operations. While the Company expects to receive additional funds from its announced senior secured first lien credit facility, there can be no assurance that the credit facility will close in a timely fashion or at all. See “Risk Factors – Senior Secured Credit Facility”. The cash flow model used to forecast this funding projection assumes Canadian general and
administrative costs of $19.65 million for the 2020 fiscal year. This is a reduction compared to the recurring quarterly Canadian general and administrative costs of $10.7 million reported in the Company’s financial statements for the third quarter of 2019. The total $13.3 million general and administrative costs reported in the financial
statements for the third quarter of 2019 also included $1.8 million from international subsidiaries and a one-time expense of approximately $0.8 million related to new offices. The Company previously announced that it had identified savings opportunities for $4 million in annualized general administrative costs. Since that announcement, the Company has identified further savings opportunities (primarily due to reduced professional and consulting fees and head count reductions), resulting in additional projected savings of approximately $7.2 million on an annual basis. Taking these savings opportunities into account, the Company projects Canadian general and administrative expenses of $19.65 million for the 2020 fiscal year.