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TORONTO, April 1, 2020 /CNW/ -The Green Organic Dutchman Holdings Ltd. (the “Company” or “TGOD”) (TSX:TGOD) (US:TGODF), a leading producer of premium certified organic cannabis, is pleased to announce that the Company has entered into a $30 million secured revolving credit facility (the “Facility”) with a private lender (the “Lender”) that is secured on accounts receivable and inventory, with a second lien over the Company’s other assets. The Facility has an initial term of one-year, subject to renewal for up to an additional year.
Upon closing of the Facility, TGOD will be able to draw $10 million. The remaining $20 million will become available as TGOD ramps up its operations and additional borrowing base becomes available from inventory and accounts receivable generated from operations. The Company’s existing lender (the “Senior Lender”) has also agreed to advance an incremental $5 million on the Company’s accordion facility, pending the amendment of the existing credit agreement.
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In conjunction with the closing of the Facility and the advance on the Company’s accordion facility, the Company will grant, to the Lender and the Senior Lender, respectively, 3,000,000 warrants to purchase common shares and 1,500,000 warrants to purchase common shares (collectively “Warrants”). The Warrants will have an exercise price of $0.39 and expire in three years.
The Facility is subject to the completion of customary closing conditions, including satisfactory documentation, and conditional listing approval of the shares issuable under the Warrants, with expected completion of conditions precedent and closing by April 20, 2020. The underwriter of the Company’s previously announced bought deal public offering of units has consented to the entering into of the Facility and the advance on the accordion facility.
About The Green Organic Dutchman Holdings Ltd.
The Green Organic Dutchman Holdings Ltd. (TSX: TGOD) (US‐OTC: TGODF) is a premium certified organic cannabis company focused on the health and wellness market. Its certified‐organic cannabis is grown in living soil, as nature intended. The Company is committed to cultivating a better tomorrow by producing its products responsibly, with less waste and impact on the environment. Its two Canadian facilities are being built to LEED certification standards and its products are sold in recyclable packaging. In Canada, TGOD plans to expand its product portfolio by launching a series of next‐generation cannabis products such as organic teas, infusers and vapes. Through its European subsidiary, HemPoland, the Company also distributes premium hemp CBD oil and CBD-infused topicals in Europe. By leveraging science and technology, TGOD harnesses the power of nature from seed to sale.
TGOD’s Common Shares and warrants issued under the indentures dated November 1, 2017 and December 19, 2019 trade on the TSX under the symbol “TGOD”, “TGOD.WT” and “TGOD.WS”, respectively. For more information on The Green Organic Dutchman Holdings Ltd., please visit Where To Buy Valium In Dublin.
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