Aurora no longer holds any shares in TGOD, but it does own warrants to buy 16.7 million shares of the organic cannabis company
() (OTCMKTS:TGODF) noted that its institutional ownership has been boosted ahead of a planned listing on the tech-laden US Nasdaq market following 's (NYSE:ACB) move to sell its remaining shareholding.
In a statement on Wednesday, the company noted Aurora’s sale of the 28.83 million TGOD shares that it owned at a price of C$3 a share for gross proceeds of C$86.5 million.
READ: High-flying cannabis firm The Green Organic Dutchman applies for Nasdaq listing
Edmonton-based Aurora no longer holds any shares in TGOD, but it does own warrants to buy 16.7 million shares of the organic cannabis company, equivalent to around a 5% stake.
TGOD said that Aurora's transaction also “significantly improves” its revenue and margin due to the “repatriation of TGOD's premium organic cannabis” previously earmarked for Aurora under a special investor rights agreement between both the companies.
The company said the partnership deal included “a revenue sharing model” with Aurora which would have lowered TGOD's average selling price and margins.
"Aurora has been an excellent partner during TGOD's initial development phase. Their investment played an important role in our success. The relationship added significant value across multiple areas of the business, including the initial design and construction of our Canadian facilities," said TGOD CEO Brian Athaide.
“This is the right next step in the relationship as both companies mature and our respective strategies evolve. It also improves TGOD's revenue and margin potential on the sale of our premium organic cannabis," he added.
The Green Organic Dutchman is building over 1.6 million square feet of cultivation and processing facilities across Ontario, Quebec, Jamaica and Denmark, and has a planned capacity of 219,000 kilograms.
It has organic hemp CBD oil operations in Canada, and through its wholly owned subsidiary HemPoland distributes premium hemp CBD oil in the European Union.
Last month, the organic medical cannabis company said it had applied to list its shares on Nasdaq.
Contact Uttara Choudhury at [email protected]
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