- 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://ibn.fm/s2AIo).
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
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