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The Green Organic Dutchman closes $42.7 million credit facility

The cannabis company entered into a binding term sheet with lender Maynbridge Capital

Green Organic Dutchman Holdings Ltd. - The Green Organic Dutchman closes $42.7 million credit facility
The Green Organic Dutchman also issued seven million share purchase warrants to the lender

The Green Organic Dutchman Holdings Ltd (TSE:TGOD) (OTCMKTS:TGODF) said it has closed a deal with Maynbridge Capital Inc for a senior secured first lien credit facility of up $42.7 million.

In a statement, the Ontario-based cannabis company said Tuesday that the facility consists of a committed $27.7-million secured term loan with an 18-month term. In addition, an uncommitted $15-million senior secured term loan will be made available to TGOD after it achieves certain operating and financial milestones. The company said it expects to achieve the milestones “no earlier than the end of the third quarter of 2020.”

The Green Organic Dutchman also issued seven million share purchase warrants to the lender. Each warrant shall be exercisable to acquire one common share for 36 months from the closing of the transaction at an exercise price of $1.00 per warrant. 

READ: Green Organic Dutchman arranges $42 million credit facility

The company said it intends to use the proceeds of the offering to complete the construction of its processing facility at Ancaster, Ontario and for general corporate purposes.

Established by Dutch founders, the company grows organic cannabis in high-technology, eco-friendly and sustainable facilities. The cannabis is grown naturally in Canadian soil without the use of synthetic pesticides, herbicides or fertilizers and wrapped in eco-friendly packaging.

Contact the author Uttara Choudhury at [email protected]

Follow her on Twitter: @UttaraProactive

Quick facts: Green Organic Dutchman Holdings Ltd.

Price: 0.455 CAD

TSX:TGOD
Market: TSX
Market Cap: $142.29 m
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