SOURCE: The Green Organic Dutchman Holdings Ltd.

February 09, 2017 16:54 ET

The Green Organic Dutchman Holdings Ltd. Announces $10 Million Non-Brokered Financing

ANCASTER, ON--(Marketwired - February 09, 2017) - The Green Organic Dutchman Holdings Ltd. ("the Company") is pleased to announce that it is conducting a best efforts equity financing to raise aggregate gross proceeds of $10,000,000 (the "Offering") through the issuance of common share units (the "Units") at a price of $1.15 per Unit. Each Unit will consist of one common share of the Company (a "Common Share") and one common share purchase warrant of the Company (a "Warrant"). Each Warrant is exercisable into one Common Share (the "Warrant Share") at the exercise price of $2.15 per share for a period of 24 months from the closing date ("Closing Date") of the Offering. It is intended that the Warrants will be transferable and will be subject to acceleration in the event that the volume weighted average price of the Common Shares is equal to or greater than $2.80 over a period of ten consecutive days. The Common Shares and Warrants will be subject to a 6 month contractual escrow period from the date the Company's common shares (or derivative thereof) are listed on an exchange ("Listing Date"). The Warrant Shares will be subject to a twelve-month contractual escrow period from the Closing Date.

"This is a unique retail shareholder driven financing, that allows as many potential patients to participate as an investor, in the upside of our Company," states Rob Anderson, CEO of TGOD.

RECENT DEVELOPMENT HIGHLIGHTS:

  • The company successfully completed a heavily over-subscribed $13,200,000 initial financing announced in December 2016.
  • TGOD has secured an additional and contiguous 75-acre property bringing the incumbent land package to 100 acres. This additional land sets TGOD apart from much of its peers, allowing for large-scale and accelerated expansion plans.
  • The company has added significantly to both the corporate, operational and project management teams. (See corporate presentation for details and full bios -- http://www.tgod.ca/)
  • Engaged Larssen Greenhouse Engineering, who specialises in the technical design and building of the most modern and sophisticated hybrid greenhouses in the industry.
  • Engineering and design for Phase 1 Expansion of 145,000 sq. ft. commenced in January. This expansion will increase the current annual productive capacity from 1,000KG's to over 14,000KG's.

PHASE 1 EXPANSION
Engineering and design for our Phase 1 expansion are well underway, and management anticipates construction to begin late in Q2, 2017. The Company has expedited its original plan and increased its size and scope, we will be executing a 2-part expansion of Phase 1:

Hybrid Expansion:

  • A 125,000 sq. ft. of state-of-the-art, automated, hybrid facility
  • Additional annual capacity of ~11,000KG's
  • Anticipated Q2 2018 initial harvest

Enclosed Expansion:

  • A 20,000 sq. ft. state-of-the-art indoor facility
  • Additional annual capacity of ~2,000KG's
  • Anticipated Q1 2018 initial harvest

Following the completion of the Phase 1 expansion, TGOD's production capacity is expected to be ~14,000KG's annually. The Company has built a team of highly experienced power, energy optimization and construction professionals to ensure this expansion is delivered not only on-time and on-budget but also completed to the highest possible standards, potentially setting a new standard for our industry.

"This is our last planned pre-IPO financing, and fully funds the first stage of our expansion plans," states Marc Cernovitch, President of TGOD.

ABOUT GREEN ORGANIC DUTCHMAN

The Green Organic Dutchman Ltd. Produces Farm Grown, Pharma Grade Organic Cannabis. The Company grows high quality, organically grown medical cannabis in small batches using craft growing, all natural principles.

The Green Organic Dutchman is licensed under the access to cannabis for medical purposes regulations (ACMPR) to cultivate medical marijuana. Green Organic carries out its principal activities producing marijuana from its facilities in Ancaster, Ont., pursuant to the provisions of the ACMPR and the Controlled Drugs and Substances Act (Canada) and its regulations.

This news release contains forward-looking information, which involves known and unknown risks, uncertainties and other factors that may cause actual events to differ materially from current expectation. Important factors -- including the availability of funds, the results of financing efforts and the parties' due diligence reviews, and general market conditions -- that could cause actual results to differ materially from the Company's expectations. Readers are cautioned not to place undue reliance on these forward-looking statements, which speak only as of the date of this press release. The company disclaims any intention or obligation, except to the extent required by law, to update or revise any forward-looking statements, whether as a result of new information, future events or otherwise.

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