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The Green Organic Dutchman Holdings Ltd. Announces $7 Million Private Placement

ANCASTER, ON--(Marketwired - February 27, 2017) - The Green Organic Dutchman Holdings Ltd. ("the Company" or "TGOD") is pleased to announce that it has entered into an agreement with a syndicate co-led by Canaccord Genuity Corp. and GMP Securities L.P. (the "Agents"), whereby the Agents will sell on a commercially reasonable efforts private placement basis 6,100,000 Units of the Company (the "Units") at a price of C$1.15 per Unit (the "Issue Price") for aggregate gross proceeds of up to C$7,015,000.

Each Unit will consist of one common share of the Company (a "Common Share") and one common share purchase warrant of the Company (a "Warrant"). Each Warrant is exercisable into one Common Share (the "Warrant Share") at the exercise price of $2.15 per share for a period of 24 months from the closing date ("Closing Date") of the Offering.

It is intended that the Warrants will be transferable and will be subject to acceleration in the event that the volume weighted average price of the Common Shares is equal to or greater than $2.80 over a period of ten consecutive days.

The Common Shares and Warrants will be subject to a 6 month contractual escrow period from the date the Company's common shares (or derivative thereof) are listed on an exchange ("Listing Date").

The Warrant Shares will be subject to a twelve-month contractual escrow period from the Listing Date.

The Company intends to use the net proceeds of the Offering for advancing the Phase 1 expansion of the Company's Cannabis cultivation facilities and for general working capital purposes.


Hybrid Expansion:

  • A 125,000 sq. ft. state-of-the-art, automated, hybrid greenhouse facility
  • Additional annual capacity of ~11,000KG's
  • Anticipated Q2 2018 initial harvest

Enclosed Expansion:

  • A 20,000 sq. ft. state-of-the-art indoor facility
  • Additional annual capacity of ~2,000KG's
  • Anticipated Q2 2018 initial harvest

Following the completion of the Phase 1 expansion, TGOD's production capacity is expected to be ~14,000KG's annually. The Company has built a team of highly experienced power, energy optimization and construction professionals to ensure this expansion is delivered not only on-time and on-budget but also completed to the highest possible standards, potentially setting a new standard for our industry.

The Company's presentation materials can be found online at

Closing of the Offering is expected to occur on or about March 22, 2017 and is subject to certain conditions including, but not limited to, the receipt of all necessary approvals of the securities regulatory authorities.

The Green Organic Dutchman Ltd. Produces Farm Grown Organic Cannabis. The Company grows high quality, organically grown medical cannabis in small batches using craft growing, all natural principles.

The Green Organic Dutchman is licensed under the access to cannabis for medical purposes regulations (ACMPR) to cultivate medical marijuana. Green Organic carries out its principal activities producing marijuana from its facilities in Ancaster, Ont., pursuant to the provisions of the ACMPR and the Controlled Drugs and Substances Act (Canada) and its regulations.

This news release contains forward-looking information, which involves known and unknown risks, uncertainties and other factors that may cause actual events to differ materially from current expectation. Important factors -- including the availability of funds, the results of financing efforts and the parties' due diligence reviews, and general market conditions -- that could cause actual results to differ materially from the Company's expectations. Readers are cautioned not to place undue reliance on these forward-looking statements, which speak only as of the date of this press release. The company disclaims any intention or obligation, except to the extent required by law, to update or revise any forward-looking statements, whether as a result of new information, future events or otherwise.

Brett Allan
Executive Vice President
t: 905-304-4201
e: This email address is being protected from spambots. You need JavaScript enabled to view it.

27 February 2017, 2:04pm

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