The Green Organic Dutchman Holdings Ltd (TSE:TGOD) (OTCMKTS:TGODF) announced the distribution of new warrants of its spinout company TGOD Acquisition Corp to registered TGOD shareholders who elected to receive the warrants in January this year.
The new warrants will take effect on June 3, 2019, the company said in a statement Thursday.
TGOD Acquisition Corp is an investment company focused on making cannabis deals in Canada and internationally. The company will be led by Daniel Brody, the former vice president of investor relations at TGOD, who now takes on the CEO role at the new company.
Under the terms of the deal, each TGOD shareholder as of January 31 who indicated they wanted to participate in the transaction will receive 0.15 of one warrant in the new company for each TGOD share held as of the January date. The new warrant will entitle the holder to purchase one unit of TGOD Acquisition Corp at a price of $0.50 per unit, payable by July 10, 2019.
Each new unit consists of one share and one warrant exercisable into one share of TGOD Acquisition at a price of $1.25 for a period of 24 months following the date that TGOD Acquisition shares begin trading on a recognized stock exchange. The company noted that a listing is not guaranteed.
The cannabis company also noted that it will not deliver warrants of the spinout to shareholders who are US residents under the US securities laws.
Shares of TGOD fell 2.1% in Thursday morning trading in Toronto to sit at C$3.83.
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