​The Green Organic Dutchman Announces $25 Million Special Warrant Bought Deal Financing

Spotlight Companies |

The Green Organic Dutchman Ltd. (TSX:TGOD) is pleased to announce that it has entered into an engagement letter with Canaccord Genuity Corp., acting as co-lead underwriter and sole bookrunner, on behalf of a syndicate of underwriters including PI Financial Corp. as co-lead underwriter, and Mackie Research Capital Corporation (collectively, the "Underwriters") pursuant to which the Underwriters have agreed to purchase 3,910,000 special warrants of the Company (the "Special Warrants"), on an bought deal basis, at a price per Special Warrant of $6.40 for aggregate gross proceeds of approximately $25 million (the "Offering"). Closing of the Offering is expected to occur on June 26, 2018.

Each Special Warrant not previously exercised will be automatically exercised, without payment of additional consideration, on the earlier of: (i) the Qualification Deadline (as defined below); and (ii) the third business day after the Prospectus Qualification (as defined below). The holders of Special Warrants will receive, upon such deemed exercise and for no additional consideration, one unit of the Company (the "Units") for each Special Warrant held. Each Unit will be comprised of one common share of the Company (the "Common Shares") and one-half of one common share purchase warrant (each whole warrant, a "Warrant"). Each Warrant will entitle the holder to purchase one Common Share at an exercise price of $9.50 for a period of 36 months from the date of closing of the Offering.

The Company will file and obtain a receipt for a preliminary prospectus, qualifying the Units issuable pursuant to the exercise of the Special Warrants (the "Prospectus") in all of the provinces of Canada (the "Qualifying Jurisdictions") within 10 business days from the Closing. The Company will diligently pursue all approvals and take all commercially reasonable steps to obtain a final receipt for the Prospectus in the Qualifying Jurisdictions. In the event that a receipt for a preliminary Prospectus has not occurred prior to 10 days after the Closing Date, each unexercised Special Warrant will, at the Time of Expiry, entitle the holder thereof to receive upon the exercise thereof, at no additional cost, 1.05 Units per Special Warrant.

In consideration for their services, the Underwriters will receive a cash commission equal to 6% of the gross proceeds of the Offering and will issue such number of underwriters' warrants equal to 6% of the number of Special Warrants sold in the Offering. Each underwriters' warrant will be exercisable into a common share of the Company at the Offering Price for a period of three years from the closing date.

The Company intends to use the net proceeds of the Offering to fund strategic investments and international expansion opportunities.



This news release does not constitute an offer to sell or a solicitation of an offer to buy any of the securities in the United States. The securities have not been and will not be registered under the United States Securities Act of 1933, as amended (the "U.S. Securities Act") or any state securities laws and may not be offered or sold within the United States unless registered under the U.S. Securities Act and applicable state securities laws or an exemption from such registration is available.

On Behalf of the Board of Directors,

The Green Organic Dutchman Holdings Ltd.
Robert Anderson
Chief Executive Officer and Co-Chairman

ABOUT THE GREEN ORGANIC DUTCHMAN HOLDINGS LTD.

The Green Organic Dutchman Holdings Ltd. is a research & development company licensed under the Access to Cannabis for Medical Purposes Regulations ("ACMPR") to cultivate medical cannabis. The Company carries out its principal activities producing cannabis from its facilities in Ancaster, Ont., pursuant to the provisions of the ACMPR and the Controlled Drugs and Substances Act (Canada) and its regulations.

The Company grows high quality, organic cannabis with sustainable, all-natural principles. TGOD's products are laboratory tested to ensure patients have access to a standardized, safe and consistent product. TGOD has a funded capacity of 116,000 kg and is building 970,000 sq. ft. of cultivation facilities in Ontario and Quebec.

The Company has developed a strategic partnership with Aurora Cannabis Inc. (TSX:ACB) whereby Aurora has invested approximately $78.1 million for an approximate 17.5% stake in TGOD. In addition, the Company has raised approximately $290 million dollars and has over 5,000 shareholders.

TGOD's Common Shares and warrants issued under the indenture dated November 1, 2017 trade on the TSX under the symbol "TGOD" and "TGOD.WT", respectively.

In the interest of full disclosure, we call the reader's attention to the fact that Equities.com, Inc. is compensated by the companies profiled in the Spotlight Companies section. The purpose of these profiles is to provide awareness of these companies to investors in the micro, small-cap and growth equity community and should not in any way be considered as a recommendation to buy, sell or hold these securities. Equities.com is not a registered broker dealer, investment advisor, financial analyst, investment banker or other investment professional. We are a publisher of original and third party news and information. All profiles are based on information that is available to the public. The information contained herein should not be considered to be complete and is not guaranteed by Equities.com to be free from misstatement or errors. The views expressed are our own and not intended to be the basis for any investment decision. Readers are reminded to do their own due diligence when researching any companies mentioned on this website. Always bear in mind that investing in early-stage companies is risky and you are encouraged to only invest an amount that you can afford to lose completely without any change in your lifestyle. Equities has been compensated with cash, common shares and/or warrants for market awareness services provided.

DISCLOSURE: The views and opinions expressed in this article are those of the authors, and do not represent the views of equities.com. Readers should not consider statements made by the author as formal recommendations and should consult their financial advisor before making any investment decisions. To read our full disclosure, please go to: http://www.equities.com/disclaimer

Comments