The Green Organic Dutchman Holdings, Ltd. (TSX: TGOD) (OTCQX: TGODF) is engaged within the research, development, and cultivation of medical cannabis within Canada. Shares of the licensed cannabis producer rallied 25.44% during trading on Tuesday, September 4, 2018. Over the past three months, The Green Organic Dutchman has seen average daily volume of 1.49 million shares. However, volume of 6.99 million shares or dollar volume of C$49.49 million, exchanged hands during Tuesday’s trading session.
Shares of The Green Organic Dutchman jumped on Tuesday, after the company announced it has agreed with Aurora Cannabis, Inc. (TSX: ACB) (OTCQX: ACBFF) to extend Aurora’s exercise deadline regarding the first milestone option from the “TGOD Aurora Investor Rights Agreement.” The deadline was extended six weeks until October 12, 2018. Under the first milestone option, Aurora Cannabis has the ability to acquire an additional 8% of The Green Organic Dutchman’s common stock. Here is the full press release detailing of the milestone option deadline extension:
The Green Organic Dutchman Holdings, Ltd. Press Release:
TORONTO, Sept. 04, 2018 (GLOBE NEWSWIRE) — The Green Organic Dutchman Holdings Ltd. (the “Company” or “TGOD”) (TSX:TGOD) (US:TGODF) announces it has agreed with Aurora Cannabis Inc. (“Aurora”) (TSX:ACB) to extend Aurora’s exercise deadline of its first milestone option (the “Milestone Option”) under the TGOD Aurora Investor Rights Agreement by 6 weeks to October 12, 2018. The first Milestone Option entitles Aurora to acquire an additional 8% of the common shares of the Company.
For more information on the terms of Aurora’s strategic investment in TGOD, please view the press release from January 5th, 2018 here.
Further to the Investor Rights Agreement between TGOD and Aurora, dated January 12, 2018, the first Milestone Option was triggered on August 2, 2018, 90 days after TGOD’s initial public offering which closed on May 2, 2018. Under the Investor Rights Agreement, Aurora had 30 days to exercise the Milestone Option. The parties have agreed to extend the term, such that the Milestone Option will now expire on October 12, 2018.
“The Aurora partnership has been incredibly beneficial for both parties to date,” said Brian Athaide, TGOD’s CEO. “In addition to the organic supply agreement, the value of Aurora’s initial investment has increased nearly five-fold. In turn, the assistance provided by the Aurora team has helped accelerate our progress across all divisions, and we look forward to continuing our strategic partnership as we work towards building the largest organic cannabis brand in the world,” continued Athaide.
Terry Booth, CEO of Aurora, added, “We are pleased with the progress made at TGOD to date, as reflected by the significant appreciation of our investment. We are now working with the TGOD team on finalizing the details of our go forward partnership, and we will continue to support them as they execute on their strategy.”
ABOUT THE GREEN ORGANIC DUTCHMAN HOLDINGS LTD.
The Green Organic Dutchman Holdings Ltd. is a research & development company licensed under the Access to Cannabis for Medical Purposes Regulations (“ACMPR”) to cultivate medical cannabis. The Company carries out its principal activities producing cannabis from its facilities in Ancaster, Ont., pursuant to the provisions of the ACMPR and the Controlled Drugs and Substances Act (Canada) and its regulations.
The Company grows high quality, organic cannabis with sustainable, all-natural principles. TGOD’s products are laboratory tested to ensure patients have access to a standardized, safe and consistent product. TGOD has a funded capacity of 170,000 kg and is building 1,382,000 sq. ft. of cultivation facilities in Ontario, Quebec and Jamaica.
The Company has developed a strategic partnership with Aurora Cannabis Inc. (ACB.TO) whereby Aurora has invested approximately C$78.1 million for an approximate 17.5% stake in TGOD. In addition, the Company has raised approximately C$350 million dollars and has over 20,000 shareholders.
TGOD’s Common Shares and warrants issued under the indenture dated November 1, 2017 trade on the TSX under the symbol “TGOD” and “TGOD.WT”, respectively.
Forward-Looking Information Cautionary Statement
This news release includes statements containing certain “forward-looking information” within the meaning of applicable securities law (“forward-looking statements”). Forward looking statements in this release includes, but is not limited to, statements about the future legalization of recreational cannabis and cannabis-infused products in Canada, statements about the offering of any particular products by the Company and statements regarding the future performance of the Company. Forward-looking statements are frequently characterized by words such as “plan”, “continue”, “expect”, “project”, “intend”, “believe”, “anticipate”, “estimate”, “may”, “will”, “potential”, “proposed” and other similar words, or statements that certain events or conditions “may” or “will” occur. These statements are only predictions. Various assumptions were used in drawing the conclusions or making the projections contained in the forward-looking statements throughout this news release. Forward-looking statements are based on the opinions and estimates of management at the date the statements are made, and are subject to a variety of risks and uncertainties and other factors that could cause actual events or results to differ materially from those projected in the forward-looking statements. The Company is under no obligation, and expressly disclaims any intention or obligation, to update or revise any forward-looking statements, whether as a result of new information, future events or otherwise, except as expressly required by applicable law. Neither TSX nor its Regulation Services Provider (as that term is defined in the policies of Toronto Stock Exchange) accept responsibility for the adequacy or accuracy of this release.