TGOD Raises $112M Ahead of Highly Anticipated IPO Later This Year

The Green Organic Dutchman Holdings (TGOD) announced that it has raised $112 million, including $55 million from Aurora Cannabis (ACBFF), which made a strategic investment in the company, ahead of TGOD’s anticipated 2018 initial public offering.

As part of the capital raise, TGOD issued 67,878,788 units (comprised of 1 share of common stock and one-half common share purchase warrant) at $1.65 per unit. The warrants have an exercise price of $3 per share and expire nearly three years from now.

“Teaming up with Aurora, the industry’s innovation leader provides us with a stable, supportive shareholder, through whom we have access to best-in-class technologies and industry know-how. This will significantly accelerate our time to market and establish TGOD as the world’s leading provider of premium organic cannabis,” said Reider said in a press release.

TGOD, led by President Csaba Reider and CEO Rob Anderson, has raised $160 million to-date, helping it build out its 970,000 sq. ft. greenhouse facilities in Ontario and Quebec. TGOD also closed a $36 million financing in October 2017.

After TGOD has finished the expansion of the aforementioned facilities, the company expects it to be “one of the largest and most technologically advanced cannabis production facilities in the world, producing ultra-low cost, premium-quality organic cannabis.” TGOD also noted that it will have close to a zero-carbon footprint, along with some of the lowest-cost power rates in the country.

Aside from the investment by Aurora, Aurora has the right to buy up to 20% of TGOD’s annual production from the plant, which should be able to grow up to 116,000 kilograms of cannabis per year.

Reider noted that the supply agreement with Aurora should help the company grow.

“With this significant cornerstone investor and customer, we will be able to leverage our deep consumer packaged goods and brand building experience, as well as Aurora`s well-established brand recognition to pursue rapid growth,” he added.

Anderson, TGOD’S CEO, added that by partnering with Aurora, it shows off TGOD’s “differentiated business model,” which he believes will create value for its partners and shareholders.

“This is a synergistic partnership that will help TGOD reach an international audience with its premium products and rapidly capture market share in this incredibly dynamic market, and will provide further differentiation and diversification to Aurora’s product offering,” Anderson said.

Jack Smith

Jack Smith

Jack Smith is a tech reporter that dabbles in cannabis reporting to help out his good friends at GMR.


19 comments

  • Avatar
    Sean

    January 17, 2018 at 3:12 pm

    Will this company be in the America stock market?

    Reply

    • Debra Borchardt
      Debra Borchardt

      January 17, 2018 at 3:22 pm

      I expect it will IPO on one of the Canadian exchanges.

      Reply

  • Avatar
    Sharon

    January 17, 2018 at 4:57 pm

    Is the IPO expected to happen before March?

    Reply

    • Debra Borchardt
      Debra Borchardt

      January 17, 2018 at 5:31 pm

      The company said it was “On track for March”. I doubt it would be earlier than that.

      Reply

  • Avatar
    Stephenbadi

    January 19, 2018 at 5:29 pm

    Can someone tell me how much the ipo for Tgod could open at ? Even a roundabout guess would be really helpful .. Thanks

    Reply

    • Debra Borchardt
      Debra Borchardt

      January 22, 2018 at 8:25 am

      Pricing an IPO is very tricky. Too low and the original investors leave money on the table, too high and it trades down at the open creating a negative headline. Usually, you don’t hear about the price range until the IPO time nears and they try to gauge what the market will bear for the price.

      Reply

    • Avatar
      Vish Ram

      January 27, 2018 at 10:41 am

      Most likely $1.30but u should buy for 0.90

      Reply

      • Avatar
        Joe

        February 27, 2018 at 1:31 am

        Will be $4.20 said

        Reply

  • Avatar
    Ken

    January 20, 2018 at 1:33 pm

    Debra
    How can I get the alert when this company goes in as an IPO

    Reply

    • Debra Borchardt
      Debra Borchardt

      January 22, 2018 at 8:23 am

      TGOD has an Investor Center on its website, you may try subscribing to that. They seem to be very open about their market aspirations.

      Reply

  • Avatar
    Stephenbadi

    January 22, 2018 at 9:50 am

    Thank you.

    Reply

  • Avatar
    Stephenbadi

    January 30, 2018 at 5:00 pm

    If tgod opens at 1.30 $ wouldn’t the pre- sale investors be shocked ?? Even if they received warrents !!

    Reply

  • Avatar
    Stephenbadi

    February 1, 2018 at 4:59 pm

    Hello .. Its me again. Can’t seem to find the reason why all pot stocks are crashing.. Ideas ?

    Reply

    • Debra Borchardt
      Debra Borchardt

      February 1, 2018 at 6:08 pm

      I see MassRoots took another dive and Insys is under attack from the NY AG. It’s possible those two events brought the group down. It tends to trade together regardless of whether that makes sense or not.

      Reply

  • Avatar
    Dave

    February 17, 2018 at 4:35 am

    Pot stocks, like any stocks sell the news….
    Recent senate news albeit a delay seems to have bearing.
    At same time dilution is occuring as the growers scramble for capacity. Simply put there is not enough existing capacity…

    Reply

  • Avatar
    Al

    February 27, 2018 at 10:12 pm

    I believe a delay in IPO would perhaps be warranted given all POT stocks are out of flavor right now….things are not in the favour of it….

    Reply

  • Avatar
    john

    March 10, 2018 at 4:35 pm

    so its early march any word on the ipo release date?

    Reply

  • Avatar
    sarah

    May 2, 2018 at 10:53 am

    HI what is the symbol for the American exchange to trade TGOG

    Reply

    • Debra Borchardt
      Debra Borchardt

      May 3, 2018 at 8:06 am

      It is only trading on the Canadian exchange at this time.

      Reply

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