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.