TORONTO, Sept. 4, 2019 /CNW/ - PRESS RELEASE - The Green Organic Dutchman Holdings Ltd. (TGOD) comments on the recent transaction between Aurora Cannabis and a syndicate of Canadian banks. The block trade was executed on Sept. 3 after market close. A total of 28.8 million shares were exchanged at a negotiated price of $3.00 per unit. The Edmonton-based company still retains a large number of TGOD warrants equivalent to approximately 5 percent of the company's fully diluted shares.
This transaction significantly improves TGOD's revenue and gross margin mix due to the repatriation of TGOD's premium organic cannabis previously earmarked for Aurora under the Investor Rights Agreement between the parties. The agreement included a revenue sharing model with Aurora which would have lowered TGOD's average selling price and margins.
"Aurora has been an excellent partner during TGOD's initial development phase; their investment played an important role in our success. The relationship added significant value across multiple areas of the business, including the initial design and construction of our Canadian facilities," commented Brian Athaide, CEO of TGOD. "This is the right next step in the relationship as both companies mature and our respective strategies evolve. It also improves TGOD's revenue and margin potential on the sale of our premium organic cannabis."
