The Green Organic Dutchman (TSX: TGOD) is looking for further investor dollars. The company this evening announced that it is conducting an at the market financing to raise gross proceeds of up to $15.0 million.
All shares sold under the ATM offering will be sold via the Toronto Stock Exchange, with the shares to be sold between December 2, 2020 and December 31, 2021 via that of Canaccord Genuity. The company has indicated that the financing is intended to provide “additional financing flexibility should it be required in the future.”
Net proceeds raised from the financing are to be use for general corporate purposes and working capital needs, which is to include the repayment of certain indebtedness. The transaction is said to be qualified under the $50 million shelf prospectus filed by the company last week.
Notably, the company expects to be short cash in a years time, as we highlighted over the weekend on Twitter. The company expects to have roughly $49,000 in cash on hand as of October 31, 2021, which is assuming they are capable of generating positive operating cash flow as they claim, yet have yet to do.
Sponsored · Selkirk Copper Mines
The financing announced this evening as a result is not the least bit surprising. If anything, it will delay the requirement to draw upon its currently available revolving facility.
The Green Organic Dutchman last traded at $0.33 on the TSX.
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.
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