The Green Organic Dutchman Holdings Ltd. (TGODF) is distributing a dividend that will consist of a warrant in a new corporation called TGOD Acquisitions to its shareholders. The company will do just as the name says – acquire and develop worldwide opportunities.
TGOD said that it had met with many cannabis companies around the world that didn’t quite fit with the company, but believes the properties would benefit their shareholders. The company said that it plans to execute a series of staged financings and acquisitions that would ultimately lead to a late 2018 target IPO date.
“This is an incredible opportunity for TGOD to transfer expertise and monetize our proprietary knowledge from the Canadian marketplace. 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. We are excited about this unique opportunity to reward our investors and provide additional value to TGOD shareholders,” said TGOD CEO, Brian Athaide.
Once the spin-out is complete TGOD Acquisitions will operate separately from TGOD and will have its own Board of Directors and management.
According to a company statement, TGOD will distribute to its shareholders a Warrant to acquire a TGOD Acquisitions Unit for $0.50. Each Unit will consist of one share plus an additional warrant for the investor. This additional warrant (the “Additional Warrant”) will be triggered by a subsequent financing to occur following the initial $0.50 offering.
The distribution will be paid on the basis of one Warrant for every 6.67 TGOD shares owned on the record date, to be fixed by the Board of Directors of TGOD following satisfaction of the conditions for the Arrangement.
TGOD and TGOD Acquisitions will enter into a repayable funding agreement, whereby TGOD will provide $25,000,000 of working capital to TGOD Acquisitions. This will be repayable by TGOD Acquisitions prior to completion of any investment. In consideration for the funding agreement, TGOD Acquisitions will issue a restricted warrant to purchase 50 million common shares for a period of 25 years from the date upon which the shares of TGOD Acquisitions commence trading on the Canadian Securities Exchange.
“We have developed a significant amount of intrinsic value from years of corporate development at TGOD,” said Brian Athaide. “Capitalizing on these efforts will add value to both TGOD’s balance sheet and the investment portfolios of our shareholders,” continued Athaide.