Green Organic Dutchman secures funding of up to C $ 103 million

[ad_1]

Canadian cannabis company The Green Organic Dutchman Holdings Ltd. TGODF,
-2.27%
TGOD,

announced Thursday that it has signed agreements granting it up to C $ 103 million ($ 77.6 million) in funding. The news comes after the Toronto-based company announced in October that it would cut costs and adopt a plan to reduce its financing needs as it grapples with a smaller-than-expected Canadian market. The company has been working to find alternative financing to raise the funds necessary to complete the construction of some of its facilities, after the proposed financing was prohibitive. Green Organic Dutchman now claims to have a financial package consisting of a sale and leaseback of its Ancaster Energy Center; a construction mortgage terms sheet; and a list of convertible share conditions. The 10-year sale and leaseback agreement brought in proceeds of C $ 23 million. The term sheet of the mortgage loan amounts to C $ 40 million and is secured by the Ancaster facility as well as by Valleyfield. The convertible term sheet is US $ 30 million and carries a 5% coupon. The company will use the funds to complete construction of the processing plant in Ancaster and to complete construction of six zones in its hybrid greenhouse in Valleyfield. Stocks listed in the US were not yet active before commercialization, but fell 61% in 2019, while the ETFMG Alternative Harvest ETF MJ,
-2.85%
fell 28% and the S&P 500 SPX,
+ 0.15%
gained 23%.

[ad_2]

About Michael Bill

Check Also

Consumer Financial Protection Bureau plans to suspend foreclosures until 2021

[ad_1] The Consumer Financial Protection Bureau said on Monday it was considering new rules to …

Leave a Reply

Your email address will not be published.