- Improves revenue and margin potential by recovering offtake of TGOD’s premium organic cannabis
- Boosts TGOD’s institutional ownership ahead of potential NASDAQ listing
- Unlocks opportunities for new relationships with third party partners
TORONTO, September 4, 2019 – The Green Organic Dutchman Holdings Ltd. (the "Company" or "TGOD") (TSX:TGOD) (US:TGODF) comments on the recent transaction between Aurora Cannabis ("Aurora") (TSX:ACB) and a syndicate of Canadian banks. The block trade was executed on September 3 after market close. A total of 28.8 million shares were exchanged at a negotiated price of $3.00 per unit. The Edmonton-based company still retains a large number of TGOD warrants equivalent to approximately 5% of the Company’s fully diluted shares.
This transaction significantly improves TGOD’s revenue and gross margin mix due to the repatriation of TGOD’s premium organic cannabis previously earmarked for Aurora under the Investor Rights Agreement (the "Agreement") between the parties. The Agreement included a revenue sharing model with Aurora which would have lowered TGOD’s average selling price and margins.
"Aurora has been an excellent partner during TGOD’s initial development phase; their investment played an important role in our success. The relationship added significant value across multiple areas of the business, including the initial design and construction of our Canadian facilities," commented Brian Athaide, CEO of TGOD. " This is the right next step in the relationship as both companies mature and our respective strategies evolve. It also improves TGOD’s revenue and margin potential on the sale of our premium organic cannabis," added Athaide.
About The Green Organic Dutchman Holdings Ltd.
The Green Organic Dutchman Holdings Ltd. (TSX: TGOD) (US: TGODF) is a publicly traded, premium global organic cannabis company, with operations focused on medical cannabis markets in Canada, Europe, the Caribbean and Latin America, as well as the Canadian adult-use market. TGOD also has organic hemp CBD oil operations in Canada, and through its wholly owned subsidiary HemPoland distributes premium hemp CBD oil in the EU. The Company grows high quality, certified 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 planned capacity of 219,000 kgs and is building 1,643,600 sq. ft. of cultivation and processing facilities across Ontario, Quebec, Jamaica and Denmark.
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.
For more information on The Green Organic Dutchman Holdings Ltd., please visit www.tgod.ca.
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Forward-Looking Information Cautionary Statement
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