The Green Organic Dutchman Provides Update on Aurora Cannabis Milestone Option
TORONTO, Oct. 12, 2018 /CNW/ – The Green Organic Dutchman Holdings Ltd. (the “Company” or “TGOD”) (TSX:TGOD) (US:TGODF) announces that the first milestone option (the “Milestone Option”) under the Investor Rights Agreement (the “Agreement”) between TGOD and Aurora Cannabis Inc. (“Aurora”) (TSX:ACB) has expired. The Milestone Option entitled Aurora to acquire an additional 8% of the common shares of the Company.
The milestone was achieved on August 2nd, 2018, three months after the Company’s shares became listed on the TSX. The Milestone Option provided Aurora with the right to purchase 8% of the Company’s shares (on a fully diluted basis) from treasury for cash at a 10% discount to the 10-day VWAP. Under the Agreement, the Milestone Option has now expired, and the Company has elected not to provide a further extension. In addition, pursuant to the terms of the Agreement, all remaining Milestone Options to acquire additional interests in the Company have expired.
Aurora continues to maintain the right to purchase up to 20% of TGOD’s premium organic cannabis from the Company’s two facilities under construction in Canada. The selling price is based on a revenue sharing arrangement, similar to wholesale pricing.
Aurora has been an incredible partner to date and both parties plan to continue the partnership. They invested $78.1 million into our Company and added tremendous value across multiple areas of collaboration, including the design and construction of our Canadian facilities.
Brian Athaide, CEO of TGOD
Our recent $75 million bought deal financing ensures TGOD has the capital necessary to continue our international expansion at a rapid pace, extending sales and distribution to more channels throughout Europe and Latin America. While the Milestone Option has expired, many possibilities exist in the future for our two very complementary companies.
ABOUT THE GREEN ORGANIC DUTCHMAN HOLDINGS LTD.
The Green Organic Dutchman Holdings Ltd. is a premium global organic cannabis company, with operations focused on medical cannabis markets in Canada, Europe and Latin America and the soon to be legal Canadian adult-use market. The Company grows high quality, organic cannabis with sustainable, all-natural principles. TGOD’s products are laboratory tested to ensure patients have access to a standardized, safe and consistent product. TGOD has a funded capacity of 170,000 kg and is building 1,382,000 sq. ft. of cultivation facilities across Ontario, Quebec and Jamaica.
The Company has developed a strategic partnership with Aurora Cannabis Inc. (TSX:ACB) whereby Aurora has invested approximately C$78.1 million for 20% offtake from TGOD’s local production. In addition, TGOD has raised approximately C$350 million and has over 20,000 shareholders.
TGOD’s Common Shares and warrants issued under the indenture dated November 1, 2017 trade on the TSX under the symbol “TGOD” and “TGOD.WT”, respectively.