Canadian Cannabis Producer Green Organic Dutchman Raises $112 Million
January 16, 2018 at 5:01 pm
Published by NCV Newswire
The Green Organic Dutchman Holdings Ltd. Announces Closing of $112 Million Financing and Strategic Investment by Aurora Cannabis Inc.
HAMILTON, Ontario, Jan. 16, 2018 (GLOBE NEWSWIRE) — The Green Organic Dutchman Holdings Ltd. (the “Company” or “TGOD”) is pleased to announce the closing of its previously announced brokered and non-brokered private placements. TGOD has issued 67,878,788 Units (the “Units”) at a price of $1.65 per Unit, for gross proceeds of $112,000,000. Each Unit consists of one common share of the Company (a “Common Share”) and one-half common share purchase warrant of the Company (a “Warrant”). Each whole Warrant is exercisable into one Common Share (the “Warrant Share”) at the exercise price of $3.00 per share and has an expiry date that is the earlier of (a) 36 months from the date the Common Shares commence trading on a recognized stock exchange (the “Listing Date”), and (b) February 28, 2021. The Company will make all reasonable efforts to ensure the Warrants are listed on the same exchange on which the Common Shares are listed.
The Company is pleased to announce the closing of Aurora Cannabis Inc.’s (TSX:ACB) strategic investment into TGOD. The investment consists of 33,333,334 Units, priced at $1.65 per Unit, for gross proceeds of $55 million.
To date, the Company has raised a total of $160 million, fully funding the expansion of 970,000 sq. ft. state-of-the-art, ultra-high technology hybrid greenhouse facilities in Ancaster, Ontario and Valleyfield, Quebec. TGOD’s expansion and strategic partnership with Aurora positions the Company as an industry leader and sets the foundation for the highly anticipated upcoming 2018 IPO.
Upon completion of the Company’s expansion, it is expected to be one of the largest and most technologically advanced cannabis production facilities in the world, producing ultra-low cost, premium-quality organic cannabis. Additionally, TGOD’s facilities will be LEED certified and operating with close to a zero-carbon footprint with some of the lowest-cost power rates in the country.
LEED, stands for “Leadership in Energy and Environmental Design”, is an internationally recognized green building certification system, providing third-party verification that a building was designed and built using strategies aimed at improving performance across all the metrics that matter most: energy savings, water efficiency, CO2 emissions reduction, improved indoor environmental quality, and stewardship of resources and sensitivity to their impacts.
In addition to Aurora’s investment in TGOD, the companies shall enter into a supply agreement, providing Aurora with the right to purchase up to 20% of TGOD’s annual production of premium high quality organic cannabis.
Further, Aurora and Aurora Larssen Projects Inc. (“ALPS”) will provide additional services to TGOD on the completion and commissioning of its Ancaster and Valleyfield facilities, which are anticipated for Winter 2018. The facilities, when completed, will have an annual productive capacity of 116,000 kg of premium, high quality organic cannabis.
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