Green Organic Dutchman Holdings files for IPO on TSX

Updated: TGOD has filed an amendment to raise up to $115M at $1B valuation – to read >> click to here <<

The Green Organic Dutchman Holdings Ltd. has filed a preliminary prospectus in connection with a proposed initial public offering (IPO), by way of a unit offering to be priced.

The underwriting syndicate is being led by Canaccord Genuity Corp. and including PI Financial Corp., Industrial Alliance Securities Inc., INFOR Financial Inc., Echelon Wealth Partners Inc., and Mackie Research Capital Corporation.

McMillan LLP and Miller Thomson LLP are acting as legal counsel to Green Organic Dutchman ad the agents respectively.

Green Organic Dutchman Holdings has applied to list its shares and warrants on the Toronto Stock Exchange (TSX).

As at February 14, 2018, Green Organic Dutchman Holdings had 159,074,627 common shares issued and outstanding or 246,671,207 shares on fully diluted basis.

2249606 Ontario Ltd., a wholly-owned subsidiary of 2249605 Ontario Ltd., is the single largest shareholder controlling 31,350,000 shares (19.70%) prior to the offering. Jeff Paikin through The Jeffrey Paikin Family Trust, Terry Line, Greg Boone, Ian Wilms through The Ian Wilms Family Trust are the shareholders of 2249605 Ontario.

On January 12, 2018, Aurora Cannabis Inc. (TSX: ACB) acquired $55 million of subscription receipts of Green Organic Dutchman Holdings at the price of $1.65 per Subscription Receipt. Each Subscription Receipt will automatically convert into one November Unit upon Green Organic Dutchman Holdings completing a transaction that results in its shares being listed on a stock exchange in Canada. If the listing date does not occur on or before July 31, 2018, the Subscription Receipts shall be automatically cancelled and Green Organic Dutchman Holdings shall be required to repay to Aurora the proceeds from the sale of the Subscription Receipts plus an additional amount equal to 7.5% of the subscription proceeds.

Upon converting of all subscription receipts, Aurora Cannabis would become the largest shareholder, holding 33,333,333 shares or 13.51% on fully diluted basis, prior to the closing of the offering.

The Aurora Cannabis Subscription Receipts financing valued Green Organic Dutchman Holdings at $407 million on fully diluted basis.

photo credit: Green Organic Dutchman

Ted Liu

Ted Liu, M.Sc. (Mining, Queen's), MBA (Finance, Toronto), is the Editor of Private Capital Journal, CanadaMetals.ca, TechWire.ca, and the former Editor of Canadian Private Equity. Ted has been passionately tracking Canadian private capital industry since 1992, having most recently served as Research Director for The Canadian Venture Capital and Private Equity Association (CVCA).

Ted is the architect of CVCA infobase, and is the architect of CPE Media's Financings.ca, Canada's most sophisticated and advanced all private capital and public market financing database.