The Green Organic Dutchman (TSX: TGOD) announced this morning that the firm will be conducting a $22.0 financing through the public markets at a discount to the previous days close. The financing is being conducted on a bought deal basis by a syndicate of underwriters lead by Canaccord Genuity.
The financing, to be conducted at a price per unit of $0.75, will see shares sell at a 15.7% discount to yesterdays closing price. Each unit is to comprise of one common share, and one half of a common share purchase warrant. Each warrant is exercisable at a price of $1.00 for a period of 36 months. A total of 29,334,000 units are expected to be sold for total gross proceeds of $22.0 million.
An over-allotment option is also available for a period of 30 days following the close of the financing, which could bring in an additional $3.3 million for the cash strapped issuer.
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The financing is expected to close by December 17, 2019.
The transaction is being pursued as a result of the Dutchman walking away from the previously announced non-binding convertible debenture for US$30 million. The firm has since walked away as a result of the terms being unfavourable, with the newly announced financing expected to be less dilutive.
TGOD is currently in the process of finalizing both the previously announced sale leaseback arrangement at Ancaster, as well as the mortgage loan arrangement.
The Green Organic Dutchman closed yesterdays session at $0.89 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.
