TGOD Announces $30 Million Secured Revolver Facility, Amendment to Accordion Facility

The Green Organic Dutchman (TSX: TGOD) has secured additional sources of funding this morning, announcing two separate credit facilities that combined may amount to a total of $35 million.

The first facility, for up to $30 million, is for a period of one year initially, and may be extended for an additional year. The credit facility, which is a secured revolver, is secured by accounts receivable and inventory, with a second lien over all of the firms other assets.

Upon closing of the arrangement, which is expected to occur by April 20, The Green Organic Dutchman will be eligible to draw up to $10 million from the facility. Additional funds will become available as the firm ramps operations and additional borrowing base becomes available as a result due to accounts receivable and inventory being generated.

TGOD has also managed to secure an additional $5 million in funding for its ongoing according facility with its senior lender. The funds will be advanced pending the amendment of the existing agreement, however terms for this facility were scarce.

Upon closing the secured revolving credit facility TGOD will issue 3,000,000 common share purchase warrants to the lender with an exercise price of $0.39 and an expiry of three years. The senior lender, in association with the amended accordion facility, will receive 1,500,000 common share purchase warrants with the same terms.

Information was not provided on the interest rate agreed to in assocation with the secured revolving credit facility.

The Green Organic Dutchman last traded at $0.30 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.