The spin-off will require the approval of two-thirds of the cannabis company’s shareholders
(TSX:TGOD, OTCQX:TGODF) has plans for a spin-off company as it seeks out more international opportunities.
Known as TGOD Acquisition Corporation, the subsidiary will be used to take on international opportunities that don’t quite fit into the cannabis company’s current business plan.
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Danny Brody, vice president of Investor Relations, sat down with Proactive’s Christine Corrado to break down exactly what this means for investors and how it’ll work.
“There are no cheap founder shares. There’s no free insider paper. This is truly the first seed-level round and we’re giving first crack at it to all TGOD shareholders, kind of as a thank you,” said Brody.
For current investors, if you own one share of TGOD then you’ll have the option to acquire 0.15 shares in the acquisition company, which plans to trade on the Canadian Securities Exchange.
Each warrant will entitle the holder to purchase one unit at a price of $0.50 each with a half warrant attached to that at $1.25 per share.
Sidecar deal in the works
The company also plans to invest in a sidecar $10 million private placement to get the subsidiary off the ground.
Investors will need to be shareholders of TGOD by mid-December to take advantage of the offer.
The spin-off will need to be approved by at least two-thirds of shareholders at the TGOD meeting on December 6.
The cannabis company has cultivation facilities in Ontario, Quebec and Jamaica. It recently launched its brand of organic cannabis, grown naturally in Canadian soil without the use of synthetic pesticides, herbicides or fertilizers and wrapped in eco-friendly packaging.
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