logo-loader
viewGreen Organic Dutchman Holdings Ltd.

The Green Organic Dutchman to raise C$22M in bought deal financing

It plans to use the proceeds to complete the construction of its processing facility in Ancaster, Ontario and for general corporate purposes

The Green Organic Dutchman Holdings Ltd - The Green Organic Dutchman Holdings Ltd announces plans to raise C$22 million in bought deal financing
A syndicate of underwriters have agreed to purchase 29,334,000 units at a price of C$0.75 per unit

The Green Organic Dutchman Holdings Ltd. (TSX:TGOD) (OTCMKTS:TGODF) announced Tuesday plans to raise C$22 million via bought deal financing. 

In a statement, the company said it intends to use the proceeds to complete the construction of its processing facility in Ancaster, Ontario and for general corporate purposes. 

TGOD has entered into an agreement with a syndicate of underwriters led by Canaccord Genuity Corp that have agreed to purchase 29,334,000 units at a price of C$0.75 per unit.

READ: The Green Organic Dutchman’s 3Q gains traction from entry into the recreational cannabis market

Each unit shall consist of one common share and one-half of one common share purchase warrant. Each warrant shall be exercisable to acquire one common share for a period of 36 months from the closing of the transaction at an exercise price of C$1 per warrant.

TGOD has granted the underwriters an option to purchase up to an additional 4,400,100 units at a price of C$0.75 per unit, exercisable at any time, for a period of 30 days -- which would result in additional proceeds of up to about C$3.3 million. 

The units will be offered by way of a short form prospectus to be filed in all provinces of Canada except Quebec. The offering is expected to close on December 17.

TGOD noted that the offering provides it with more capital advanced on closing and is less dilutive than the previously announced convertible note term sheet, which was structured with a series of conditional tranches and is no longer being pursued by the company.

The company said it continues towards finalizing the mortgage loan arrangement and the sale and leaseback of the energy centre at its Ancaster facility that was also previously announced.

Contact the author: [email protected]

Follow him on Twitter @PatrickMGraham

Quick facts: Green Organic Dutchman Holdings Ltd.

Price: 0.67 CAD

TSX:TGOD
Market: TSX
Market Cap: $209.53 m
Follow

Add related topics to MyProactive

Create your account: sign up and get ahead on news and events

NO INVESTMENT ADVICE

The Company is a publisher. You understand and agree that no content published on the Site constitutes a recommendation that any particular security, portfolio of securities, transaction, or investment strategy is...

In exchange for publishing services rendered by the Company on behalf of Green Organic Dutchman Holdings Ltd. named herein, including the promotion by the Company of Green Organic Dutchman Holdings Ltd. in any...

FOR OUR FULL DISCLAIMER CLICK HERE

Watch

The Green Organic Dutchman making a bold move into the Hemp market

The Green Organic Dutchman (TSE:TGOD) Vice President, General Counsel and Director of TGOD’s subsidiary, HemPoland  Anna Stewart joined Steve Darling from Proactive Investors Vancouver to talk about TGOD’s move into Hemp launching a global division. Stewart talks about what this means...

on 21/6/19

2 min read