Canadian organic cannabis producer The Green Organic Dutchman (TSX: TGOD) (OTC: TGODF) announced Tuesday that it has signed a bought deal agreement with a syndicate of underwriters led by Canaccord Genuity.
The agreement dictates that the underwriters will buy an aggregate of 29,334,000 units at a price of CA$0.75 (55 cents) per unit, amounting to a total of approximately CA$22 million. Each unit will consist of one common share and one-half of one share purchase warrant of TGOD stock.
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Additionally, The Green Organic Dutchman said it has agreed to give the underwriters an overallotment option that allows them to purchase up to an additional 4,400,100 units at the cost of CA$0.75 per unit for an extra period of 30 days. If the underwriters choose to fulfill this option, they would add approximately CA$3.3 million to the deal.
This deal will grant TGOD more capital to complete construction of its processing facility in Ancaster, Ontario and for general corporate purposes, the company said.
The stock was down 17.27% at 56 cents at the time of publication Tuesday.
Photo by Javier Hasse.
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