Evidently, demand for The Green Organic Dutchman (TSX: TGOD) remains, with the company announcing this morning that it will be conducted a bought deal private placement to the tune of $11.0 million. The offering is being underwritten by Canaccord Genuity, whom has also been granted an over-allotment option.
The financing will see units of the company sold at a price of $0.24 per unit, with each unit consisting of one common share and three quarters of one common share purchase warrant of the company. Each warrant is exercisable into one common share of the company for a period of five years at a price of $0.30 per share. A total of 46,316,000 units of the company are expected to be sold under the offering.
An over-allotment option has also been granted, which would see the company issue 6,947,400 additional units for additional proceeds of $1.65 million if exercised. The option is exercisable for a period of 30 days following the close of the transaction.
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Gross proceeds from the offering are to be used for general corporate purposes. The financing is expected to close by October 22, 2020.
The Green Organic Dutchman last traded at $0.30 on the TSX.
Information for this briefing was found via Sedar and The Green Organic Dutchman. The author has no securities or affiliations related to this organization. Not a recommendation to buy or sell. Always do additional research and consult a professional before purchasing a security. The author holds no licenses.
