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," said
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," continued Athaide.
On Behalf of the Board of Directors,
The Green Organic Dutchman Holdings Ltd.
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.
Forward-Looking Information Cautionary Statement
This news release includes statements containing certain
"forward-looking information" within the meaning of applicable
securities law ("forward-looking statements"). Forward looking
statements in this release includes, but is not limited to,
statements about the future legalization of recreational cannabis
and cannabis-infused products in Canada, statements about future research,
development and innovation by the Company, statements about the
offering of any particular products by the Company in any
jurisdiction and statements regarding the future performance of the
Company. Forward-looking statements are frequently characterized by
words such as "plan", "continue", "expect", "project", "intend",
"believe", "anticipate", "estimate", "may", "will", "potential",
"proposed" and other similar words, or statements that certain
events or conditions "may" or "will" occur. These statements are
only predictions. Various assumptions were used in drawing the
conclusions or making the projections contained in the
forward-looking statements throughout this news release.
Forward-looking statements are based on the opinions and estimates
of management at the date the statements are made, and are subject
to a variety of risks and uncertainties and other factors that
could cause actual events or results to differ materially from
those projected in the forward-looking statements. The Company is
under no obligation, and expressly disclaims any intention or
obligation, to update or revise any forward-looking statements,
whether as a result of new information, future events or otherwise,
except as expressly required by applicable law.
Neither TSX nor its Regulation Services Provider (as that
term is defined in the policies of Toronto Stock Exchange) accept
responsibility for the adequacy or accuracy of this
release.
SOURCE The Green Organic Dutchman Holdings Ltd.