Rockshield Capital Comments On Strategic Partnership In Investee Company, The Green Organic Dutchman (TGOD)
PRESS RELEASE PR Newswire
Jan. 16, 2018, 09:00 AM
VANCOUVER, Jan. 16, 2018 /CNW/ - Rockshield Capital Corp. (CSE: RKS), (US: CRUOF), (FSE: 6BC) ("Rockshield" or the "Company") is pleased to announce that a private investee company, The Green Organic Dutchman ("TGOD") has signed a strategic partnership with industry leader Aurora Cannabis.
Aurora will acquire, through a private placement of $55 million a 17.62% interest on a non-diluted basis of The Green Organic Dutchman. The Placement consists of 33,333,334 units, priced at $1.65 per unit, with each unit consisting of one common share and one half of one common share purchase warrant, exercisable at $3.00 per common share for a period of 36 months following closing of the offering. Upon TGOD achieving certain corporate, operational, construction and financial milestones, as described below, Aurora shall have the option to incrementally increase its ownership interest in TGOD to 51%.
As part of the agreement, the companies shall enter into a supply contract, providing Aurora with the right to purchase up to 20% of TGOD's annual production of organic cannabis from TGOD's Ancaster and Valleyfield facilities. Consequently, Aurora anticipates being able to procure in excess of 20,000 kg per annum of premium organic products once TGOD's Valleyfield and Ancaster facilities are completed and at full capacity. The supply contract provides Aurora with the right to purchase up to 33% of TGOD's production at the two facilities if Aurora increases its ownership interest to 31%.
Dave Doherty, President and CEO said, "This is a major development for TGOD and provides a strategic partnership with an industry leader. TGOD has done an incredible job of progressing two large scale organic licensed facilities in Ontario and Quebec which should have combined total production capacity of 116,000 kg per year once complete. This strategic partnership further strengthens the development of these projects and should provide additional cost savings and enhanced yields. We look forward to the pending IPO of TGOD this March."
Rockshield Capital was an early stage investor in TGOD holding 500,000 shares at $0.50.
ABOUT ROCKSHIELD CAPITAL CORP.
Rockshield Capital is a publicly traded venture capital fund under the symbol RKS on the Canadian Securities Exchange. Rockshield Capital offers investors a chance to gain exposure to early stage seed investments in companies they typically would not get access to. Leveraging the vast professional network and experience of the management Rockshield reviews hundreds of deals a year and chooses those which have the best return potential under the current market environment. For more information please refer to our website www.rockshield.ca.
For further information regarding Rockshield, see Rockshield's disclosure documents on SEDAR at www.sedar.com.
The Canadian Securities Exchange has neither approved nor disapproved the information contained herein and does not accept responsibility for the adequacy or accuracy of this news release.
SOURCE Rockshield Capital Corp.