The Green Organic Dutchman Holdings (TSX:TGOD) announced an agreement for a bought deal basis worth over 10 million units of the company at a price of C$6.85, for total proceeds of over C$75 million.
As quoted in the press release:
Each Unit will consist of one common share of the Company (a “Common Share”) and one Common Share purchase warrant (each whole Common Share purchase warrant, a “Warrant”). Each Warrant will be exercisable to acquire one Common Share (a “Warrant Share”) for a period of 30 months following the closing of the Offering (the “Closing”) at an exercise price of $9.00 per Warrant Share.
The Company has granted the Underwriter an option (the “Over-Allotment Option”), to purchase up to an additional 1,642,500 Units at a price of C$6.85 per Unit, exercisable at any time, for a period of 30 days after and including the Closing Date. The Over-Allotment Option is exercisable to acquire Units, Common Shares and/or Warrants (or any combination thereof) at the discretion of the Underwriter.
The net proceeds of the Offering will be used for the Company’s international expansion initiatives and general corporate purposes.