On the eve of its latest earnings report, and after facing recent market struggles, marijuana producer The Green Organic Dutchman Holdings (TGOD) (TSX:TGOD,OTCQX:TGODF) confirmed on Thursday (November 14) that it has obtained C$103 million in funding.
The new money, which was a recent cause of concern for the company, will arrive by way of three different phases: a sale-leaseback deal for its Ancaster Energy Center, a construction mortgage loan term sheet and a separate convertible equity note term sheet.
Brian Athaide, CEO of TGOD, said the method for the company to raise capital “despite recent headwinds affecting the entire sector” shows confidence from the firm’s financial partners.
TGOD investors have faced a harsh market in the late stages of 2019, with shares of the company taking a dramatic dip in October due to TGOD missing out on the financing needed to complete construction of two production facilities, one in Ontario and the other in Quebec.
With the new funds, the company now expects to complete construction of its processing facility in Ancaster, Ontario. TGOD is projecting that its products will hold distribution across Canada in 2020.
The leaseback deal the company now has in place for its Ontario facility will secure proceeds of C$23 million. However, the new funding arrangements all carry similar warnings: the company cannot guarantee that each deal will close.
Athaide previously told BNN Bloomberg that the company required C$160 million in bridge financing to finish off its facilities.
Shares of the company opened Thursday’s trading session at C$0.94. However, TGOD quickly dropped after the opening bell and was down by 7.61 percent as of 10:53 a.m. EST to a price of C$0.85.
Over a year-to-date period, shares of TGOD have dropped in value by 68.16 percent.
“This is the right next step in the relationship as both companies mature and our respective strategies evolve,” Athaide previously said.
In a statement, Aurora CEO Terry Booth said his company’s interest in TGOD became irrelevant following Aurora’s all-share acquisition of Whistler Medical Marijuana.
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Securities Disclosure: I, Bryan Mc Govern, hold no direct investment interest in any company mentioned in this article.
As investors continue to prioritize cannabis opportunities in the US, market watchers expect mergers and acquisitions (M&A) to play a role in the future for Canadian companies.
A consolidation trend has been expected in the Canadian cannabis space for some time now based on the size of the market compared to the number of operations in the country.
BioHarvest Sciences Inc. Unveils the Unique Polyphenolic Content of Its Upcoming Olive-Based Nutraceutical
The product will include polyphenols known to have significant health benefits.
BioHarvest Sciences Inc. (CSE: BHSC) (“BioHarvest” or the “Company”) has reached an important milestone in its development program of additional Nutraceuticals. The olive-based Nutraceutical product scheduled for market availability in the second half of 2022 will contain the following unique matrix of polyphenols: hydroxytyrosol, trosol, and verbascoside. These compounds are the major polyphenols in naturally grown olives and are responsible for the high antioxidant activity of olives and olive oil. Importantly, the BioHarvest olive-based Nutraceutical product will provide all the benefits of olives and olive oil with a low calorie count per serving.
Cresco Labs (CSE:CL) (OTCQX:CRLBF) (“Cresco” or the “Company”), one of the largest vertically integrated multistate cannabis operators in the United States, announced today that it will report financial results for the fourth quarter and full year ended December 31 st , 2020 on Thursday March 25 th , 2021 before the market opens.
The Company will host a conference call and webcast to discuss its financial results and provide investors with key business highlights on Thursday March 25 th , 2021 at 8:30am Eastern Time (7:30am Central Time).
Canopy Growth to Participate in BofA Securities Virtual Consumer & Retail Technology Conference on March 11, 2021
Canopy Growth Corporation (TSX: WEED) (NASDAQ: CGC) (“Canopy Growth” or “the Corporation”) announced today that EVP & CFO Mike Lee will be participating in a fireside chat at the BofA Securities Virtual Consumer & Retail Technology Conference on Thursday, March 11, 2021 at 9:30am ET .
Hill Street Beverage Company Inc. (TSXV: BEER) (“Hill Street” or the “Company”). The Company announces that further to its press release dated March 2, 2021, it has obtained TSX Venture Exchange approval to extend the closing date of its previously announced private placement of units (“Units”) until April 7, 2021. Each Unit is comprised of one (1) common share and one (1) warrant, exercisable for one common share at price of $0.11 per share, for a period of three (3) years from the date of Closing. The Company applied to extend the date of closing to allow a greater number of interested investors to participate.
For more information regarding the Company or the offering, please contact firstname.lastname@example.org, or