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The Green Organic Dutchman arranges C$5M bought deal financing agreement

Canaccord Genuity Corp has agreed to purchase 17,858,000 units in the company at a price of C$0.28 apiece

Green Organic Dutchman Holdings Ltd. - The Green Organic Dutchman Holdings Ltd enters into bought deal financing agreement with Canaccord Genuity Corp to raise C$5 million
TGOD intends to use the proceeds for the development of key product lines and for general corporate purposes

The Green Organic Dutchman Holdings Ltd (TSE:TGOD) (OTCMKTS:TGODF), a producer of premium organic cannabis, announced Friday it has entered into an agreement with Canaccord Genuity Corp to raise C$5 million in financing.

In a statement, TGOD said Canaccord has agreed to purchase, on a bought deal basis,17,858,000 units in the company at a price of C$0.28 per unit.

TGOD said it intends to use the proceeds for the development of key product lines and for general corporate purposes.

READ: The Green Organic Dutchman cuts costs while expanding its product portfolio

The Ontario-based company said each unit consists of one common share in the group and one-half of a one common share purchase warrant. Each warrant shall be exercisable to acquire one common share for a period of 36 months from the closing of the transaction at an exercise price of C$0.38 per warrant.

TGOD has also granted Canaccord an over-allotment option to purchase up to an additional 2,678,700 units at C$0.28 apiece, exercisable at any time, for a period of 30 days after and including the closing date, which would result in additional proceeds of C$750,036. 

The units will be offered by way of a short form prospectus to be filed in all provinces of Canada except Quebec. The offering is expected to close on April 17.

Contact the author: patrick@proactiveinvestors.com

Follow him on Twitter @PatrickMGraham

Quick facts: Green Organic Dutchman Holdings Ltd.

Price: 0.33 CAD

TSX:TGOD
Market: TSX
Market Cap: $144.58 m
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