The Green Organic Dutchman Holdings Ltd. (TSX: TGOD) (US: TGODF) is expanding a financing deal it announced last week.
On Monday TGOD announced it was amending an agreement with Canaccord Genuity Corp., a Vancouver-based investment firm, for total proceeds of $24 million — an additional $2 million from the original deal.
As the legal market has expanded in Canada, Canaccord has been one of the leading deal makers in the cannabis space, doing billions a year in deals with pot companies.
Under this agreement, Canaccord agreed to purchase 32,000,000 units at a price of $0.75 per unit. Each unit is worth one common share and one-half of a common share purchase warrant, which will be usable for 36 months at an exercise price of $1.00 per warrant.
TGOD’s share price rose slightly following the announcement to around $0.80 Tuesday from $0.72 Monday morning.
There is also an over-allotment option in the deal to purchase up to an additional 4.8 million units at $0.77 each, which could result in an additional $3.6 million in funding.
TGOD said the financing will be used to finish construction of its processing facility in Ancaster, Ont., and for general corporate purposes.
“The offering provides the company with more capital advanced on closing and is less dilutive than the previously announced convertible note term sheet, which was structured with a series of conditional tranches and is no longer being pursued by the company,” it said in the release.
“The company continues towards finalizing the mortgage loan arrangement and the sale and leaseback of the energy centre at its Ancaster facility that were also previously announced.”
However, TGOD will still need to get the necessary approvals to list the new shares on the TSX, which it says it will use best efforts to get.
In other TGOD news this month, it received its first purchase order from the B.C. Liquor Distribution Branch — the sole distributor to all of British Columbia’s legal stores — and received licensing to begin cultivation at its greenhouse in Valleyfield, Ont.