The Green Organic Dutchman Closes Bought Deal Financing

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The Green Organic Dutchman  announced that it has closed their previously announced bought-deal financing. This includes the exercise of the over-allotment amount by the underwriter, bringing the total proceeds raised to $27.6 million.

The units are priced at $0.75, or a total of 36,800,00 units, where each unit is comprised of one common share and one-half of one common share purchase warrant. The warrants entitle holders to acquire one common share of the company at an exercise price of $1.00, over a period of 36 months.

As previously stated, the proceeds of the offering will be used to complete the construction of its processing facility at Ancaster along with general corporate purposes.

TGOD is also working towards finalizing the sale and leaseback of their energy facility at Ancaster as well as the Ancaster mortgage loan. No timelines have been provided regarding these financings.

This bought deal financing provides TGOD with more guaranteed money and less dilution for shareholders compared to the previously announced (tranched) convertible note term sheet. This option is no longer being pursued by the company.

While this bought deal is for a smaller sum of money than the convertible note, at this time, it’s not clear if TGOD will need to pursue other options. Given the current market conditions, patience in raising additional capital may be prudent.

You can read a full review of the information provided on the sale-leaseback and mortgage loan here.

The opinions provided in this article are those of the author and do not constitute investment advice. Readers should assume that the author and/or employees of Capital 10X hold positions in the company or companies mentioned in the article. For more information, please see our Content Disclaimer.

Evan Veryard
Evan Veryard has a Bachelor's of Chemical Engineering from McGill University and a MaSc. of Chemical Engineering from RMC. He has over 6 years of research experience focusing on industrial materials. Address: 682 Indian Road, Toronto, Ontario, M6P 2C9. Phone: 416-721-8257.

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