Transaction|January 16, 2018
The Green Organic Dutchman closes strategic investment by Aurora Cannabis
Torys acted as counsel to The Green Organic Dutchman with a team that included Scott Cochlan, Glen Johnson, Frazer House, Owen Payne and Stephen Dalby (corporate/securities) and Teresa Reguly (regulatory).
On January 16, 2018, The Green Organic Dutchman Holdings Ltd. ("TGOD") announced that it closed a strategic investment by Aurora Cannabis Inc. ("Aurora") for gross proceeds of approximately C$55 million.
Pursuant to the investment, TGOD issued a total of 33,333,334 subscription receipts to Aurora with each subscription receipt convertible into common shares and warrants. TGOD and Aurora have also entered into an investor rights agreement, whereby Aurora has the option to incrementally increase its ownership interest in TGOD to 51% upon TGOD achieving certain corporate, operational, construction and financial milestones.
In connection with the investment, TGOD and Aurora also entered into a supply agreement providing for the purchase by Aurora of up to 20% of TGOD's annual production from its Ancaster and Valleyfield facilities of premium high-quality organic cannabis. TGOD and Aurora have also entered into an investor rights agreement.
TGOD produces farm grown, pharma grade organic cannabis with sustainable, all natural principles. TGOD's products are laboratory tested to ensure patients have access to standardized, safe and consistent product. To date, TGOD has raised a total of $160 million, funding the expansion of 970,000 sq. ft. of state-of-the-art, ultra-high technology hybrid greenhouse facilities in Ancaster, Ontario and Valleyfield, Quebec. TGOD's facilities will be LEED certified and operate with close to a zero-carbon footprint with some of the lowest-cost power rates in the country.
Pursuant to the investment, TGOD issued a total of 33,333,334 subscription receipts to Aurora with each subscription receipt convertible into common shares and warrants. TGOD and Aurora have also entered into an investor rights agreement, whereby Aurora has the option to incrementally increase its ownership interest in TGOD to 51% upon TGOD achieving certain corporate, operational, construction and financial milestones.
In connection with the investment, TGOD and Aurora also entered into a supply agreement providing for the purchase by Aurora of up to 20% of TGOD's annual production from its Ancaster and Valleyfield facilities of premium high-quality organic cannabis. TGOD and Aurora have also entered into an investor rights agreement.
TGOD produces farm grown, pharma grade organic cannabis with sustainable, all natural principles. TGOD's products are laboratory tested to ensure patients have access to standardized, safe and consistent product. To date, TGOD has raised a total of $160 million, funding the expansion of 970,000 sq. ft. of state-of-the-art, ultra-high technology hybrid greenhouse facilities in Ancaster, Ontario and Valleyfield, Quebec. TGOD's facilities will be LEED certified and operate with close to a zero-carbon footprint with some of the lowest-cost power rates in the country.