Canaccord Genuity Corp has agreed to purchase 17,858,000 units in the company at a price of C$0.28 apiece
The Green Organic Dutchman Holdings Ltd () (OTCMKTS:TGODF), a producer of premium organic cannabis, announced Friday it has entered into an agreement with Corp to raise C$5 million in financing.
In a statement, TGOD said Canaccord has agreed to purchase, on a bought deal basis,17,858,000 units in the company at a price of C$0.28 per unit.
TGOD said it intends to use the proceeds for the development of key product lines and for general corporate purposes.
READ: The Green Organic Dutchman cuts costs while expanding its product portfolio
The Ontario-based company said each unit consists of one common share in the group and one-half of a one common share purchase warrant. Each warrant shall be exercisable to acquire one common share for a period of 36 months from the closing of the transaction at an exercise price of C$0.38 per warrant.
TGOD has also granted Canaccord an over-allotment option to purchase up to an additional 2,678,700 units at C$0.28 apiece, exercisable at any time, for a period of 30 days after and including the closing date, which would result in additional proceeds of C$750,036.
The units will be offered by way of a short form prospectus to be filed in all provinces of Canada except Quebec. The offering is expected to close on April 17.
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