The Green Organic Dutchman completed an initial public offering of 31.5mln units at a price of $3.65 per unit.
In one of the most-anticipated cannabis initial public offerings of the year, () commenced trading on the Toronto Stock Exchange today. The IPO of 31,510,000 units at price of C$3.65 per unit, could see total gross proceeds of C$115,011,500.
The research and development company is licensed under Canada’s Access to Cannabis for Medical Purposes Regulations (ACMPR) to cultivate medical cannabis. TGOD says it has an aim to be one of the largest organic cannabis companies in the world, with a position as one of Canada’s lowest-cost producers.
Company has close ties to
The company raised over C$160mln in funding before the IPO. Much of the anticipation behind the IPO was as a result of the company’s close ties with Inc (), where an earlier strategic investment was completed in January 2018.
Today, participated in the IPO of The Green Organic Dutchman, purchasing 17.5% of the initial public offering issue (6.3 million units), for a total investment of C$23.1mln.
Each unit consists of one common share and one-half of one common share purchase warrant exercisable at $7 per common share.
There is an option for Aurora to increase its ownership to over 50% if TGOD is able to meet certain operational and financial milestones.
Crosses provincial lines: expansion plan in the works
The Green Organic Dutchman currently owns two farms in both Quebec and Ontario.
One, a 100 acre, 14,000kg per year facility in Ancaster, Ontario and the second, a 75-acre farm in Valleyfield, Quebec.
It has an expansion plan in the works, where it is developing an 820,000-square-foot cultivation facility in Valleyfield, with the potential to bring in 104,000kg annually. Construction is set to conclude late in 2018.
In late trading on Wednesday, The Green Organic Dutchman was trading at C$3.89 a share, up 8.1%.
