The Green Organic Dutchman (TGOD) grows the highest quality Organic medical cannabis in small batches using craft growing, all natural and organic principles. With experienced, passionate growers with over 8 years of MMAR growing experience, 120 acres of land, and immediate revenue from wholesale market.
Green Organic Dutchman expects to generate $90 million by 2018.
The Green Organic Dutchman, (IPO expected in Q3), is announcing a second round of financing following a heavily oversubscribed initial round.
Green Organic Dutchman is backed by the same financial team that brought together the successful IPO of Emblem Corp. Emblem’s last financing round prior to its 12/12/2016 IPO on was priced at $1.15. We rated Emblem a STRONG BUY prior to the IPO in this article. Shares opened at $2.99 on December 12th and closed last week at $3.65. No doubt, investors in Emblem’s non-brokered financing are very happy.
Accredited investors can now access what I strongly believe will be another very successful cannabis IPO in The Green Organic Dutchman
- First round of financing was oversubscribed by 300%
- Offers investors the opportunity to invest in a licensed medical cannabis producer before it goes public
- Experienced, accomplished, and successful management team with experience in structuring large JV transactions
- Early mover in high-demand 100% certified organic space will translate into strong demand under a recreational model
- Retailers want more organic choices for customers
- Patients demand quality and pay a premium price for organic product over irradiated products
- Rob Anderson is the financier who was instrumental in the $47 million in Emblem financing, taking it to a $450 million valuation since it debuted, and will be the CEO and Director of The Green Organic Dutchman. This deal is his legacy project
The Green Organic Dutchman Holdings Ltd. (“the Company”) is pleased to announce that it is conducting a best efforts equity financing to raise aggregate gross proceeds of $10,000,000 (the “Offering”) through the issuance of common share units (the “Units”) at a price of $1.15 per Unit. Each Unit will consist of one common share of the Company (a “Common Share”) and one common share purchase warrant of the Company (a “Warrant”). Each Warrant is exercisable into one Common Share (the “Warrant Share”) at the exercise price of $2.15 per share for a period of 24 months from the closing date (“Closing Date”) of the Offering. It is intended that the Warrants will be transferable and will be subject to acceleration in the event that the volume weighted average price of the Common Shares is equal to or greater than $2.80 over a period of ten consecutive days. The Common Shares and Warrants will be subject to a 6 month contractual escrow period from the date the Company’s common shares (or derivative thereof) are listed on an exchange (“Listing Date”). The Warrant Shares will be subject to a twelve-month contractual escrow period from the Closing Date.
“This is a unique retail shareholder driven financing, that allows as many potential patients to participate as an investor, in the upside of our Company,” states Rob Anderson, CEO of TGOD.
Recent Development Highlights:
- The company successfully completed a heavily over-subscribed $13,200,000 initial financing announced in December 2016.
- TGOD has secured an additional and contiguous 75-acre property bringing the incumbent land package to 100 acres. This additional land sets TGOD apart from much of its peers, allowing for large-scale and accelerated expansion plans.
- The company has added significantly to both the corporate, operational and project management teams. (See corporate presentation for details and full bios — http://www.tgod.ca/)
- Engaged Larssen Greenhouse Engineering, who specialises in the technical design and building of the most modern and sophisticated hybrid greenhouses in the industry.
- Engineering and design for Phase 1 Expansion of 145,000 sq. ft. commenced in January. This expansion will increase the current annual productive capacity from 1,000KG’s to over 14,000KG’s.
Phase I Expansion:
Engineering and design for Phase 1 expansion are well underway, and management anticipates construction to begin late in Q2, 2017. The Company has expedited its original plan, increased its size and scope, and will be executing a 2-part expansion of Phase 1:
- A 125,000 sq. ft. of state-of-the-art, automated, hybrid facility
- Additional annual capacity of ~11,000KG’s
- Anticipated Q2 2018 initial harvest
- A 20,000 sq. ft. state-of-the-art indoor facility
- Additional annual capacity of ~2,000KG’s
- Anticipated Q1 2018 initial harvest
Following the completion of the Phase 1 expansion, TGOD’s production capacity is expected to be ~14,000KG’s annually.
The Company has built a team of highly experienced power, energy optimization and construction professionals to ensure this expansion is delivered not only on-time and on-budget but also completed to the highest possible standards, potentially setting a new standard for the industry.
“This is our last planned pre-IPO financing, and fully funds the first stage of our expansion plans,” states Marc Cernovitch, President of TGOD.
Phase 1 facility expansion underway + newly acquired adjoining 75 acre property
Production license received on 8/17/16
1,000 kg annual operating capacity
Wholesale contract agreements in place
25 acres of potential facility footprint + newly acquired adjoining 75 acre property
Level 8 Vault holding up to 625Kg
Phase 1 expansion ready to commence
Licensed to Produce by Health Canada as of Aug 17, 2016
Green Organic Dutchman is licensed under the access to cannabis for medical purposes regulations (ACMPR) to cultivate medical marijuana. Green Organic carries out its principal activities producing marijuana from its facilities in Ancaster, Ont., pursuant to the provisions of the ACMPR and the Controlled Drugs and Substances Act (Canada) and its regulations.
3 Pillar Marketing Strategy
- Significant demand from fellow LP’s for organic product
- Forward sale agreements allow for immediate revenue in early stages of development while retail following is being built
- No fulfillment and minimal shipping costs
- Wholesale platform operates at high margin with low overhead
- As patient acquisitions increase and as recreational market comes on line, sales will shift from wholesale to much more profitable retail/recreational
- Patients demand quality and pay a premium price for organic product over irradiated products
- Developing Strategic partnerships with marijuana clinic networks, pain clinics, and veteran networks
- In discussion with significant distribution partners: LPs, drug stores, pharma companies, liquor stores, & dispensaries for recreational
- Creates instant distribution to the much more profitable retail/recreational market
- Management team has significant experience in structuring large JV transactions
Proven and Experienced Leadership Team, Backed by the Financiers of OrganiGram and Emblem Corp.
Chairman of the Board – Green Organic Dutchman
Mr. Paikin is the president and founder of New Horizon Development Group. In 2013 he was named RBC Distinguished Citizen of the Year for Hamilton. He is very active in the home building industry as a past president of the Hamilton Halton Home Builders’ Association and a former board member of both the Ontario Home Builders’ Association and the Canadian Home Builders’ Association. Jeff is a member of the Hamilton Tiger- Cats advisory board and the Hamilton Bulldogs Community Foundation board, as well as being the current Chair of the Hillfield Strathallan College Capital Campaign and past Chair of the board of both Hillfield Strathallan College and the Canadian Accredited Independent Schools (CAIS.ca).
CEO & Director – Green Organic Dutchman
Mr. Anderson brings 20 years of experience working with micro-cap companies in a broad range of sectors. Having spent 12 years in the Canadian brokerage Industry with one of Canada’s leading independent firms, and having financed hundreds of micro-cap companies he has an impressive track record of success, with multiple companies reaching market valuations in excess of $1B. Mr. Anderson is a strong advocate for retail shareholders, believes in a staged financing to address a company’s capital requirements, as well as advising on the development of business plans, recruiting management, negotiating transactions, joint ventures, and supporting management during the company’s growth cycle. Value of Investment into Green Organic Dutchman: $1,000,000.
Co-founder, Director & COO – Green Organic Dutchman
Mr. Skinner is a cofounder and COO of The Green Organic Dutchman. Scott engineered, designed and oversaw the construction of the Green Organic Dutchman’s production facility. This state-of-the-art facility now houses over 35 varieties of Cannabis. Scott’s current ongoing projects are the research and development of LED based Light Spectrum Optimization Technology for best cannabis production yields along with the development of Tissue Culture Propagation Protocols for the rapid cloning of cannabis plants.
Director – Green Organic Dutchman
Mr. Doherty brings over 20 years of investment and finance experience to the company. Mr. Doherty was an investment adviser with Canaccord Capital, Canada’s largest independent securities dealer covering the North American capital markets specializing in developing, structuring and financing venture and growth companies in the Resource sector. Mr. Doherty has sat on numerous boards including Organigram Holdings and presently is on the Board of Saber Capital, to be renamed Emblem Cannabis. He holds a degree from Simon Fraser University, with a major in finance. Value of Investment into Green Organic Dutchman: $900,000.
President – Green Organic Dutchman
Mr. Cernovitch brings over 20 years of investment and corporate finance experience to the company. Marc studied Economics at McGill University and has focused on corporate development, funding and building companies primarily in the resource and energy technology fields. He has a strong background in corporate governance and finance. For the past 20 years, Mr. Cernovitch has been providing capital markets advisory services to companies across both public & private sectors. In this capacity, Mr. Cernovitch has served as a director and advisor to numerous small and mid-cap companies contemplating and/or executing financing and M&A transactions. Value of Investment into Green Organic Dutchman: $600,000.
Co-founder – Green Organic Dutchman
Mrs. Vandermarel grew up on a commercial scale fruit farm in Southern Ontario and learned about agricultural business management. Jeannette’s daughter Breanne passed away in 2003 as a result of Dravet Syndrome, a severe seizure disorder. Breanne spent most of her 8 years of life on powerful anticonvulsant drugs that did little to control her seizures and unfortunately caused serious side effects. She was never given cannabis. Around 2008, anecdotal reports began showing potential for cannabis based medicines. Jeannette, while caring for children with severe seizures in the Paediatric ICU became aware that some children were having great seizure control by using cannabis medicines.
Founders and Management Heavily Invested
As mentioned above, the CEO, Rob Anderson, is heavily invested in The Green Organic Dutchman, as are other founders and the management team.
Shares held by the Lines Founder Group and Green Organic Dutchman Founders account for nearly 40% of outstanding shares, and will be held in escrow for a full 36 months from the start of trading. This is a strong vote of confidence in the future success of the business.
|# of shares||% of shares|
|Green Organic Dutchman Founders*||11,500,000||12.4%|
|Lines Founder Group*||24,750,000||26.7%|
*Shares have a 36 month escrow period from the start of public trading
How to Participate in the Financing*
Accredited investors can email Brett Allan at: Placement@tgod.ca
See also Green Organic Dutchman Presentation @ http://greenorganicdutchman.com/dl/TGOD.pdf
Corporate site: www.tgod.ca
*If the Emblem Corp financing and initial round of Green Organic Dutchman financing are any indication, this deal will be oversubscribed.
Best wishes for profitable investing!
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Disclosure: The publishers of MicrocapResearch own shares of The Green Organic Dutchman