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.
For further information: Investor Relations: Email: [email protected], Phone: 1 (416) 900-7621, www.tgod.ca