- The Green Organic Dutchman is building a cannabis industry presence with focus on premium, craft-grown product
- Company is building 1.38 million square feet of cultivation facilities in Canada, Jamaica
- New Acquisitions Corporation will focus on monetizing TGOD’s experience in finding worldwide opportunities
- Enters LOI with Denmark-based Knud Jepsen, increasing funded capacity to 195,000 kg annually
Amid the rush to market cannabis products in increasingly varied ways, medical cannabis research and development company The Green Organic Dutchman Holdings Ltd. (TSX: TGOD) (OTC: TGODF) is preparing to reward its shareholders and boost its bottom line by spinning off a new corporation that will focus on “the acquisition and development of worldwide opportunities,” according to a recent news release (http://cnw.fm/4evyA).
The Ontario, Canada-based company produces high-quality, organic medical cannabis with a reliance on premium craft-grown virtues that can be consistently reproduced trumping the desire to deliver maximized volumes. The company is one of only a few certified organic growers in Canada and also recently announced its intention to enter into the beverage industry. It has a funded capacity for growing 170,000 kg of plant material and is building 1.38 million square feet of cultivation facilities in Ontario, Quebec, and Jamaica. The company also recently announced plans to enter Denmark. The arrangement consists of two facilities situated in 1.3 million square feet of state-of-the-art automated greenhouses. The enterprise, currently the subject of a letter of intent (LOI), will be a 50/50 joint venture with Knud Jepsen, based in Hinnerup, Denmark. Expected completion date is in the second half of 2019. This arrangement will increase TGOD’s funded capacity to 195,000 kg per annum.
The spinoff of the TGOD Acquisitions Corporation is part of plans to complete a series of staged financings and acquisitions that will culminate in an IPO event expected in late 2018. The spinoff activities will bestow a warrant to shareholders that authorizes them to acquire a “unit” in the new company — one per each 6.67 shares they hold in TGOD at the time of the spinoff — for $0.50. Each unit will comprise a share in the new company, as well as an additional warrant that will allow the investors to join in a future round of financing alongside TGOD management during the seed round of the company.
TGOD has announced the record date, September 28, 2018, any TGOD common shares acquired prior to that date will contribute to exposure in the TGOD Acquisitions seed round financing.
TGOD Acquisitions will operate with its own board of directors and management structure, whose members will be announced during a meeting with shareholders. The TGOD Acquisitions Company results from collaborations that The Green Organic Dutchman has built over time with emerging cannabis companies from around the world as the company has pursued its own development within the cannabis industry. While TGOD has not pursued acquisitions previously, its management determined that the time has come to monetize its experience with other companies for the benefit of its shareholders.
The Green Organic Dutchman completed a strategic partnership with Aurora Cannabis Inc. (TSX: ACB) earlier this year that also demonstrated its foresight in building the company and strengthened its financial base, resulting in some C$78.1 million in Aurora investments. The company also has increased its profit margins by partnering with global power management company Eaton Corp. Eaton delivers optimization that makes it possible for TGOD to have some of the lowest electricity input costs in the industry, in turn granting itself opportunities to corner business in the crop growing power management and lighting field worldwide.
“This (spinoff) is an incredible opportunity for TGOD to transfer expertise and monetize our proprietary knowledge from the Canadian marketplace,” the news release states. “We will partner with innovative and disruptive companies that we can assist with capital market knowledge and unique retail-exclusive financing methods. The intention is to raise additional capital and list TGOD Acquisitions on the Canadian Securities Exchange.”
Further details about the spinoff transaction arrangement will be published in a circular to be prepared for TGOD security holders and will be filed under TGOD’s profile on SEDAR at www.SEDAR.com.
For more information, visit the company’s website at www.TGOD.ca
More from CanadianCannabisWire
CanadianCannabisWire (CNW) is an information service that provides (1) access to our news aggregation and syndication servers, (2) CannabisNewsBreaks that summarize corporate news and information, (3) enhanced press release services, (4) social media distribution and optimization services, and (5) a full array of corporate communication solutions. As a multifaceted financial news and content distribution company with an extensive team of contributing journalists and writers, CNW is uniquely positioned to best serve private and public companies that desire to reach a wide audience of investors, consumers, journalists and the general public. CNW has an ever-growing distribution network of more than 5,000 key syndication outlets across the country. By cutting through the overload of information in today’s market, CNW brings its clients unparalleled visibility, recognition and brand awareness. CNW is where news, content and information converge.
For more information please visit https://www.CanadianCannabisWire.com