Is Aurora Cannabis Dumping The Green Organic Dutchman?

Aurora Cannabis (TSX: ACB) (NYSE: ACB) appears to be shopping its final holdings in The Green Organic Dutchman (TSX: TGOD) to institutional and accredited investors. An apparent email was distributed to numerous accredited investors this afternoon indicating that the firm was looking to sell its position.

In total, Aurora Cannabis appears to be selling its final 28.3 million shares in the company at a price of $3.00 per share. Cumulatively, the sale will result in cash proceeds of $86.5 million for the Alberta based issuer, which will go towards its continuous consumption of funding. Upon completion of the sale, Aurora will only hold 19.8 million share purchase warrants in the organic producer.

Industry followers had recently suspected that a raise of sorts may be incoming for The Green Organic Dutchman as a result of recent borrow rates placed on the firm by retail brokerages. Borrow rates were reportedly as high as 131.50% for the equity heading into the long weekend. However, that reasoning didn’t resonate with long-position holders who identified that the firm reported $68.7 million in cash in the latest financials.

TGOD's Logo

Aurora Cannabis originally invested in The Green Organic Dutchman back in January 2018. Originally taking a 17.62% stake in the organic producer, Aurora held roughly 33.3 million shares at a price of $1.65, with additional warrants that have an exercise price of $3.00. As part of the initial investment, certain rights were assigned to Aurora that would allow it to purchase a portion of the cannabis produced by TGOD, as well as options to increase its ownership.

Rather than increase ownership, Aurora elected to sell its shares in the organic producer as a result of the gains it had seen on its initial investment. Aurora Cannabis began selling its position in The Green Organic Dutchman in early October 2018, and proceeded to reduce its share count in several installments through to January 2019, at which point it held a remaining 28.3 million shares. Those shares, evidently, are now up for grabs as the firm attempts to sell its final position in TGOD’s common shares.

The Green Organic Dutchman closed today’s session at $3.51, up 4.46% on the news that the firm received final licensing at its Hamilton facility.


Information for this briefing was found via Sedar and The Green Organic Dutchman. The author has no securities or affiliations related to this organization. Not a recommendation to buy or sell. Always do additional research and consult a professional before purchasing a security. The author holds no licenses.

Video Articles

Goliath Resources Hits 10.60 g/t Gold Over 22.82 Metres, Highest Grade Results In Third Distinct Rock Package At Surebet Discovery

Four Countries Control the Fertilizer That Feeds the World | Sage Potash

$10,000 Gold Is Just A Question of Time | Florian Grummes

Recommended

Antimony Resources Drills 5.27% Sb Over 4.95 Metres In Latest Results

Nord Precious Metals Identifies 29 Veins At Castle East Following 3D Modeling

Related News

Aurora Cannabis Closes US$172.5 Million Financing

Aurora Cannabis (TSX: ACB) (NYSE: ACB) this morning announced the closing of its overnight marketed...

Monday, November 16, 2020, 10:09:41 AM

TGOD Prospectus Estimates Company Will Have Just $59,131 In Cash By September 2021

Last week, The Green Organic Dutchman (TSX: TGOD) announced that it would be conducting an...

Wednesday, October 7, 2020, 01:31:14 PM

Aurora Cannabis Sees Third Facility EU-GMP Certified

Aurora Cannabis (TSX: ACB) (NYSE: ACB) this morning announced that it has received European Union...

Monday, February 3, 2020, 08:24:22 AM

The Green Organic Dutchman Launches Organic Value Brand

The Green Organic Dutchman (TSX: TGOD) has given up on the premium market, but not...

Tuesday, May 26, 2020, 09:29:54 AM

Galaxy Brain: Aurora Charting a Course through the Cannabis Supply Glut

For this weekend’s special piece, Deep Dive author Matthew Cox breaks down the Health Canada...

Saturday, November 23, 2019, 08:36:04 AM