In a statement, the company said it intends to use the proceeds to complete the construction of its processing facility in Ancaster, Ontario and for general corporate purposes.
TGOD has entered into an agreement with a syndicate of underwriters led by Canaccord Genuity Corp that have agreed to purchase 29,334,000 units at a price of C$0.75 per unit.
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Each unit shall consist of one common share and one-half of 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$1 per warrant.
TGOD has granted the underwriters an option to purchase up to an additional 4,400,100 units at a price of C$0.75 per unit, exercisable at any time, for a period of 30 days -- which would result in additional proceeds of up to about C$3.3 million.
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 December 17.
TGOD noted that the offering provides it with more capital advanced on closing and is less dilutive than the previously announced convertible note term sheet, which was structured with a series of conditional tranches and is no longer being pursued by the company.
The company said it continues towards finalizing the mortgage loan arrangement and the sale and leaseback of the energy centre at its Ancaster facility that was also previously announced.
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