Green Organic Dutchman Holdings Ltd (OTCMKTS:TGODF) is buzzing today up more than 20% as some 10M previously locked-up shares go free. TGODF have stumbled along with some other Canadian cannabis stock this month. TGODF itself has even hit some lows for the nascent company recently, but there is bounce-back potential here.
These shareholders today are making a tough call as many receipts were booked in the $1.50 range (At today’s prices, any accredited investor who purchased at $1.65/SR is still up ↑90.30% on their investment at today’s prices—excluding warrants) and they can make a nice profit by selling, but lose out on a potential return to form – the stock closed above $8 in September – after these bears are beaten off. Of course, it is not entirely feasible that the bulls will be coming back soon as the selling pressure has been strong and the declining option from Aurora Cannabis added insult to injury.
Green Organic Dutchman Holdings Ltd (OTCMKTS:TGODF) 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 116,000 kg and is building 970,000 sq. ft. of cultivation facilities in Ontario and Quebec.
The Company has developed a strategic partnership with Aurora Cannabis Inc. (TSX:ACB) 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$290 million dollars and has over 5,000 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.
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Earlier this month the Company announced a C$75 Million Bought Deal with a syndicate of underwriters led by Canaccord Genuity Corp. pursuant to which the Underwriters have agreed to purchase, on a bought deal basis pursuant to the filing of a short form prospectus, an aggregate of 10,950,000 units at a price of $6.85 per Unit for aggregate gross proceeds to the Company of $75,007,500. The net proceeds of the Offering will be used for the Company’s international expansion initiatives and general corporate purposes.
Most recently, TGODF provided an update to their spin-off acquisition corporation that will look to fund disruptive, emerging companies in the cannabis industry. With a two-thirds vote from shareholders, TGODF will complete a private placement for the SpinCo offering 20,000,000 subscription receipts on November 16th at a price of $0.50 per subscription receipt for gross proceeds of up to $10,000,000.
The money will provide additional value for shareholders by allowing them access to investment options at the seed level, while simultaneously allowing TGODF the opportunity to partner with growing companies effectively gaining access to possibly disruptive proprietary technology at an early stage. Additionally, the management team at TGODF sees this as a way to Trojan Horse-like enter the U.S. market and tap into the entrepreneurship happening within that burgeoning area.
Green Organic Dutchman Holdings Ltd (OTCMKTS:TGODF) has a market cap of 720.76M and a float of 197.92M. TGODF is an organic cannabis powerhouse and needs to be watched no matter the current bear run the company is on. Sign-up for continuing coverage on shares of $TGODF stock, as well as other hot stock picks, get our free newsletter today and get our next breakout pick!
Disclosure: we hold no position in $TGODF, either long or short, and we have not been compensated for this article.