Bzam Ltd (BZAMF)

[BigNexEnd]

Yes.."The Green Organic Dutchman Closes Sale of its Quebec Facility, and retires Senior Term Debt"...

Wed, June 23, 2021, 6:00 AM

--Sale of Quebec Facility to Cannara Biotech Inc. completed

--TGOD enters into leaseback agreement

--TGOD repaid and eliminated senior term debt

TORONTO, June 23, 2021 /PRNewswire/ - The Green Organic Dutchman Holdings Ltd. (the "Company" or "TGOD") (TSX: TGOD) (US-OTC: TGODF), a leading producer of premium certified organically grown cannabis, is pleased to announce that its wholly owned Quebec subsidiary Medican Organic Inc. ("Medican") has completed the previously announced sale (the "Transaction") of the majority of its assets in Valleyfield, Quebec (the "Quebec Facility"), including all industrial and agricultural land, main hybrid greenhouse, rooftop greenhouse, all support buildings and certain related equipment, to Cannara Biotech (OPS) Inc. (the "Purchaser") for the $27 million purchase price contemplated in the purchase and sale agreement relating to the Transaction. In addition, Medican received a $5.7 million deposit refund from Hydro-Quebec.

Concurrent with the closing of the Transaction, TGOD repaid approximately $31.8 million to its senior lender to settle all of its outstanding obligations and terminated the loan agreement with such lender.

As also agreed to with the Purchaser, Medican entered into a lease with the Purchaser concurrent with the closing of the Transaction, for approximately 80,000 square feet of cultivation and processing space in the Quebec Facility.

BMO Capital Markets acted as exclusive representative and financial advisor to the Company in connection with the Transaction, and Langlois Lawyers LLP acted as TGOD's legal counsel.

About The Green Organic Dutchman Holdings Ltd.

[Ignatius J. Reilly]

But this time only by one day....

[BigNexEnd]

AND...$TGOD's Leadership Missed ANOTHER Deadline...EOM

[BigNexEnd]

$TGOD's Volume has Dried Up Big Time. No_Investor_Interest...EOM

[JohnCM]

I have invested in Cannabis for over 7 years. I have been scouring all of the names between $0.05 and $0.50 looking for hidden gems.

I caught my share and road them higher.

I have exhausted my search. Although I have a Yahoo Finance portfolio that tracks all names $0.05 to $0.50, there is nothing that I see at this point in time that interests me. One occasion the arbitrage play works, see Supreme. IF the premium paid is decent.

Fortunately, previous to this latest swoon, I have pared down my personal portfolio and hold just a single Cannabis stock priced at $0.50.

MJ, the Cannabis ETF, is flirting with the teens again. There will be some money to be made when MJ bottoms, again. This will probably take place somewhere around $18.00 - $20.00

[Halks1122]

Let them come. The share price will be higher than where it is now.

[BigNexEnd]

I Believe Buyout Offers will Come at Low_Ball_Prices...EOM

[CES2002]

Excellent information but is it fact or fantasy. I think TGOD would welcome a takeover. They have probably burned through $500M and what do they have to show for it?

[BigNexEnd]

Might as Well Place $TGOD in a Time_Capsule_and_Check_Back_in_24_Months..EOM

[spshond]

Only thing that I see driving this price upward is insider purchases and strong sales next qtr.

[BigNexEnd]

$TGOD Has No Near Term Upward Price Drivers..Stay_Strong_Longs!!...EOM

[Halks1122]

Thanks for sharing. Good read.

Being cash flow positive is STILL just a target - damn! I really hope they get it together and make things happen…

…that way the buyout will be higher. ;)

$TGODF LOOOOOOONG

[BigNexEnd]

Halks1122... Check this out...

https://mjbizdaily.com/green-organic-dutchman-ceo-sean-bovingdon-talks-turnaround/

Cannabis turnarounds and not being ‘easy’ M&A target: Q&A with Green Organic Dutchman CEO Bovingdon
Published June 3, 2021 | By Matt Lamers

Mississauga, Ontario-based The Green Organic Dutchman Holdings (TGOD) is in the midst of executing a turnaround the company hopes will allow it to shrink debt, generate positive cash flow and avoid being easy prey for a takeover.

TGOD – which specializes in organic cannabis – is among a large group of Canadian licensed producers looking to cut costs and sell assets after overextending themselves at home and overseas.

For TGOD and others, that means unloading once-prized assets such as giant greenhouses.

“We spent over CA$200 million building (the Quebec greenhouse), but most of that has been already accounted for in impairments over the last year-and-a-half. The bids that are coming in are at levels that are at levels that can retire our senior debt, which was the plan,” CEO Sean Bovingdon told MJBizDaily in an interview.

“You’re not going to get what you paid to build the thing. No one is, and that’s why we had the write-downs.”

MJBizDaily talked with Bovingdon about how he intends to steer his ship out of troubled waters.

Green Organic Dutchman has had some tough quarters. How is the turnaround going?

We’ve been driving three things for the past year – focus, execution and discipline. The focus in the last year has been not trying to (make and sell) every single product in the cannabis market but focusing on what we can do well.

Execution: We frankly weren’t very good. We started production out of Ancaster (a city in Ontario). We took a lot of time to get it commissioned and get it right. I brought in a (chief operating officer), Michel Gagné, to focus on that execution.

So a lot of focus has meant a few things: We’re consistently getting good products out there. Costs have come down. Yields have gone up.

That helps immensely in terms of that transition, having repeatability and consistency in products, and also accountability.

And we also need to (keep up) financial discipline.

I’ve spent a lot of time over the last year-and-a-half raising money, keeping things going while also trying to get things turned around. I think that balance sheet is now in a much stronger position from where it was.

Expected production from the Quebec greenhouse underpinned the company’s valuation for years. Why should investors have faith in the company’s vision now that the greenhouse is being sold for a huge loss?

The metric in 2018 and 2019 was all about what your (production) capacity was.

That’s great, but what’s the size of the market? … It’s not a case of “build it and they will come.”

It was the same as the tech boom in the late 1990s. It’s not just about spending millions and millions on websites and dot-coms when you don’t really know what the market is.

(Why investors should trust us now) is that focus, execution and discipline.

Where we are now, the forecast that we have is achievable with the assets we have.

Getting rid of that debt (with proceeds from the Quebec greenhouse sale) is a big catalyst.

The reductions we’ve done in our (general and administrative costs), the progress we’ve made in the brands that we’ve been consistently delivering on, leads us to being cash-flow positive on a monthly basis before the end of this year. That’s the target.

Have you given any thought to moving beyond organic cannabis?

No. When you talk about opportunities in the U.S. or internationally, our lane is that organic branding.

You become a commodity if you just want to start selling whatever.

We have to be true to our brand, true to our mission, and organically grown cannabis is our halo in that regard.

Organic is great from a differentiator and from an ESG (environmental, social and corporate governance) perspective of sustainability, but it has to have quality. The value comes not just from being organic but from the quality.

Why have any focus on the U.S. before you have a foothold in Canada?

What we’re looking to do is get the optionality to get to that market. That’s why we’re looking at the application for the (Canadian Securities Exchange), to allow the optionality to invest in the U.S.

You wait till the end of 2022 for all the regulations to be in place, the cost of entry is going to be significantly more than what it is now.

We’re not spending money (in the U.S.) right now. We’re building the ability to, post-having paid off our debt, be able to investigate options and partnerships.

The other thing we’re not going to do is we’re not going to go and raise CA$200 million and build facilities from scratch. It takes too long.

What are your domestic priorities?

We’re still in only about 20% of the stores in Ontario. The No. 1 focus is to double that in Ontario.

The other aspect we’ve got to be aware of is that there’s going to be more M&A in Canada, like Hexo taking Zenabis, like Supreme and Canopy.

Our goal in Canada is to ensure that getting to cash-flow positive and paying off our debt puts us in a position not to be an easy target.

TGOD is eyeing Germany. How do you balance that while executing in your core market?

When I joined (in 2018), the management’s thought at that time was, it was a spray-gun effect. You name a country, they were trying to talk to someone there.

That’s been paired way back.

(Germany): We’re just about final on our EU-(Good Manufacturing Practice), and we have an established distribution agreement in Germany ready to go. It is the largest medical cannabis market in Europe.

(Mexico): Our first four oil products are in the final stages with COFEPRIS (the regulator) for getting cleared for distribution there.

(Australia): The third one is newer … the relationship with LeafCann in Australia. Because they were already well developed.

Much the same as the focus, same principle: Let’s focus on what we already have established and what we’re capable of delivering on, and let’s execute on it.

This interview has been edited for length and clarity.

[Halks1122]

I’ll nibble a few more under $.30. Buyout is imminent.

$TGDOF

[BigNexEnd]

2021 1st Quarter Conference Call...

https://seekingalpha.com/article/4428965-green-organic-dutchman-holdings-ltd-tgodf-ceo-sean-bovingdon-on-q1-2021-results-earnings-call

Operator

[Operator Instructions]. Your first question comes from Tamy Chen with BMO Capital Markets.

Tamy Chen

First, I was just wondering, regarding the anticipated sale of Valleyfield. Are you looking to give us a sense of what the proceeds amount maybe?

Sean Bovingdon

As we're finalizing the bid process to the formal binding level by the end of this month, as Michel mentioned, I can't pull specifically to dollar amounts, but the range we are in just now is sufficient to at least retire, as in repay, our senior term debt that we expected and working on amounts that could be in excess of that.

[MY INSERT: SENIOR DEBT IS $31.5 Million. VF sold for $27 Million]

[Halks1122]

Can you elaborate? What was misleading…the deadline?

[BigNexEnd]

TGOD's Leadership is VERY Misleading...Listen to the 1st_Q_CC...EOM

[BigNexEnd]

VERY DISAPPOINTING--ONLY GOT $27 Million for VF....

THE GREEN ORGANIC DUTCHMAN SIGNS SALE AGREEMENT AND LEASEBACK FOR ITS QUEBEC FACILITY
By: The Green Organic Dutchman

--Gross total value of $32.7 million, consisting of sale price of $27 million, plus $5.7 million from Hydro Quebec deposit return
--TGOD’s operations to remain in Valleyfield, through leaseback agreement
--Sale expected to close on or before June 22, 2021
--TGOD to use net proceeds to eliminate senior term debt

TORONTO, June 10, 2021 - The Green Organic Dutchman Holdings Ltd. (the "Company" or "TGOD") (TSX: TGOD) (US-OTC: TGODF), a leading producer of premium certified organically grown cannabis, is pleased to announce that its wholly owned Quebec subsidiary Medican Organic Inc. (“Medican”) has entered into a binding agreement of purchase and sale (the “APS”) with Cannara Biotech Inc. (the “Purchaser”) (TSXV: LOVE) for the sale of the majority of its assets in Valleyfield, Quebec (the “Quebec Facility”), including all industrial and agricultural land, main hybrid greenhouse, rooftop greenhouse, all support buildings and certain related equipment. The processing and manufacturing equipment currently utilized by Medican for the production of its cannabis 2.0 portfolio in the Quebec Facility is not subject to the APS. Pursuant to the APS, the Purchaser will have deposited the full $27 million (the “Purchase Price”) into escrow prior to the close of the sale which is scheduled to close on or before June 22, 2021 (the “Closing”). As agreed between the parties in the APS, Medican will enter on Closing into a lease with the Purchaser, for approximately 80,000 square feet of cultivation and processing space in the Quebec Facility.

Management Commentary:

“This is a major transition point for the Company, as we continue to execute our plans, allowing us to significantly reduce our debt while right-sizing our operations in Quebec without disruption,” commented Sean Bovingdon, TGOD’s CEO and Interim CFO. “Furthermore, we are pleased to be in position to provide for potential future growth in cultivation in Quebec through the leaseback of an appropriate portion of the Quebec Facility. Our portfolio of products is receiving positive reviews across the country and we look forward to providing Quebec with locally grown products, as demand continues to increase. Our balance sheet is being strengthened through the sale of excess assets and the elimination of term debt, and we expect annualized net cashflow savings of approximately $4 million in interest and overhead costs. This sets the foundation for the Company to take advantage of other growth opportunities in Canada and the United States,” added Bovingdon.

Transaction details:

--Gross Purchase Price of $27 million, paid on Closing in cash from funds deposited into escrow by the Purchaser.

--Medican will be provided with an initial two-year lease for 80,000 square feet, representing cultivation, processing and manufacturing spaces in the Quebec Facility, at an annual rate of $12.50 per square foot.

--In addition, Medican will enter into a three-year lease and cannabis supply agreement with the Purchaser, commencing after the initial two-year lease, for approximately 80,000 square feet of the Quebec Facility, whereby Medican will pay $8.75 per square foot per year for the processing and manufacturing space only and will pay the Purchaser a net amount based on the wholesale value of bulk dried cannabis that Medican produces from the growing premises in lieu of rent for that space. This will be a net amount based on bulk wholesale market prices at that time less all costs of cultivation and costs to process to point of sale of bulk dried cannabis. Medican will maintain ownership of its organic cannabis produced for sale into the retail markets.

--Concurrent with Closing, TGOD will pay approximately $31.8 million to its senior lender in full and complete settlement of all its obligations to such lender.

--The APS closing is subject to usual and customary conditions for such transactions.

--BMO Capital Markets acted as exclusive representative and financial advisor in connection with the transaction, and Langlois Lawyers LLP acted as TGOD’s legal counsel.


About The Green Organic Dutchman Holdings Ltd.

The Green Organic Dutchman Holdings Ltd. (TSX: TGOD) (US-OTC: TGODF) is a premium certified organically grown cannabis company focused on the health and wellness market. Its organic cannabis is cultivated in living soil, as nature intended.

[spshond]

Is anyone home at TGOD, it’s very quiet in here.

[BigNexEnd]

TGOD Has 3 Loans Outstanding As Shown Here...

As of March 31, 2021, Principal Balance Outstanding (All in CAD):

Senior Loan: $31,513,000

Revolver Loan: $14,401,000

HemPoland Loan: $470,000

[spshond]

Does anyone know what their second lien Term loan amount is for that they are mentioning in their response here? Majority of debt paid off would be great

[Halks1122]

Solid. Thanks for sharing, Big.

[BigNexEnd]

Shane Dungey's Reply to my Email Q's about $TGOD....

My Email:

Investor Relations:

I've been an investor of TGOD for a few years and currently own 100,500 shares at an average share price of $0.7582, which means I'm seriously underwater currently. I believe in TGOD's differentiated selling point (certified organic cannabis at scale), but am frustrated with TGOD's leadership's ability to grasp the concept of 'Under-Promising and Over-Delivering'. TGOD's Leadership too often 'Over-Promise and Under-Deliver'. The most recent case-in-point is the sale of Valleyfield. It was stated a few times in the 1st Q 2021 conference call that the sale of VF would be finalized by the end of May 2021 with closing occurring by the end of June 2021. Well... the end of May has come and gone and Investors are still waiting on updates on that process. What is the new prediction time frame for finalizing the sale of VF and closing the deal 100%? Has TGOD decided if all proceeds will be used to retire the $46 million is Senior Debt, or will a portion of the debt be refinanced for repayment in later years to allow TGOD to use funds from the sale of VF for growth purposes?

Thank you for your time and consideration.

Shane's Response:

[326T658]

The ETF who is buying the shares of TGODF must want it for their MIX of holdings!!


https://etfmg.com/funds/mj/

Go to their site to look down the list of their other holdings.
Most top Cannabis companies, evidently they are thinking that TGODF is good enough to be in their mix of their ownership
They are in the business of selling shares of their holdings ( incase people dont know what an ETF is.)

[326T658]

The ETF who is buying the shares of TGODF must want it for their MIX of holdings!!


https://etfmg.com/funds/mj/

Go to their site to look down the list of their other holdings.
Most top Cannabis companies, evidently they are thinking that TGODF is good enough to be in their mix of their ownership
They are in the business of selling shares of their holdings ( incase people dont know what an ETF is.)

[326T658]

The ETF who is buying the shares of TGODF must want it for their MIX of holdings!!


https://etfmg.com/funds/mj/

Go to their site to look down the list of their other holdings.
Most top Cannabis companies, evidently they are thinking that TGODF is good enough to be in their mix of their ownership
They are in the business of selling shares of their holdings ( incase people dont know what an ETF is.)

[BigNexEnd]

Yes. 1st Q CC: VF Sale Finalized by_End_of_May,_Closed_by_End_of_June...EOM

[spshond]

Are you talking about the sale of VF? I thought that was supposed to be in June late June??

[BigNexEnd]

AGAIN!! TGOD Over-Promised and Under-Delivered--End of May Has_Gone...EOM

[BigNexEnd]

We Need $TGOD to become a "Meme Stock"...EOM

[CES2002]

https://www.etf.com/MJ#overview

[spshond]

So they own 11% of Tgod, who is that company?

[BigNexEnd]

Well, Well, Well... Lookie Here About TGOD...

This was filed on SEDAR today....

[spshond]

This is kind of what we needed. If we can close around $.33 it would be a good thing, reset amd jumó into the $.40’s later this week or next week

[Halks1122]

Cannabis sector getting hot ahead of some key legalization moves.

$TGODF

[Halks1122]

https://www.technical420.com/cannabis-article/9-major-cannabis-sector-development-since-last-memorial-day/

Bullish outlook on the global cannabis industry and believe that the biggest catalyst for the sector will be federal legalization or decriminalization in the US. The global cannabis industry is in the early innings of a major growth cycle and are favorable on how the industry is positioned for growth.

[BigNexEnd]

My Speculation....

TGOD is serious about entering the USA. I predict they will go through with transferring from the TSX to the CSE. Once VF is sold and with the exercising of all those cheap warrants, TGOD will have enough cash to enter the USA. Being that they are aligning themselves with a SPAC is interesting. Not sure how the benefit of that will unfold, but I'm very curious. During their 1st Q Conference Call, the CEO mentioned TerrAscend Corporation as a model to follow. I hope something more comes of that mention. 2021 will be an exciting year.

[realtynj]

whats the play here BNE?

care to speculate?

[Halks1122]

Agreed.

[BigNexEnd]

TGOD's New Board of Directors Member is CFO_of_a_New_York_SPAC...

https://legatomerger.com/our-team

[BigNexEnd]

These Cheap Warrants Are Getting Exercised....

The VF sale plus proceeds from these Warrants will have TGOD with enough CASH to make some serious moves!!

$TGOD's Share Price (05/28/21) = $0.4750 CAD

All these Warrant prices are in CAD:

[spshond]

Anyone agree that we need a good 5M + shares traded cool down period in order to sustain this uptrend? any news and this thing goes into 100 RSI land

[realtynj]

$10 / share?!! im long too, but ... : )

[BigNexEnd]

HEXO bought Redecan. $TGOD is SAFE!! We Roll_Solo...EOM

[spshond]

If so, which I hope not, it will probably only be for $.50-$.75 that’s all we are really worth on paper with a multiple

[whatisthecolorofmone]

HEXO gonna eat up TGODF ...

https://ca.finance.yahoo.com/news/hexo-corp-announces-public-offering-024800849.html

[realtynj]

this girl is on fire !!!

[BigNexEnd]

Slow, Steady Rise With A Boatload of Good_News_in_the_Hopper...EOM

[Halks1122]

Solid close! Highest percentage gain in the sector.

[Halks1122]

Would love to see $.35 hold going into Friday and the long weekend.