The Green Organic Dutchman Holdings Ltd. (the “Company” or “TGOD”) (TGOD.TO) (TGODF) announces that the first milestone option (the “Milestone Option“) under the Investor Rights Agreement (the “Agreement“) between TGOD and Aurora Cannabis Inc. (“Aurora”) (ACB.TO) has expired. The Milestone Option entitled Aurora to acquire an additional 8% of the common shares of the Company.
The milestone was achieved on August 2 nd, 2018, three months after the Company’s shares became listed on the TSX. The Milestone Option provided Aurora with the right to purchase 8% of the Company’s shares (on a fully diluted basis) from treasury for cash at a 10% discount to the 10-day VWAP. Under the Agreement, the Milestone Option has now expired, and the Company has elected not to provide a further extension. In addition, pursuant to the terms of the Agreement, all remaining Milestone Options to acquire additional interests in the Company have expired.
Aurora continues to maintain the right to purchase up to 20% of TGOD’s premium organic cannabis from the Company’s two facilities under construction in Canada . The selling price is based on a revenue sharing arrangement, similar to wholesale pricing.
“Aurora has been an incredible partner to date and both parties plan to continue the partnership. They invested $78.1 million into our Company and added tremendous value across multiple areas of collaboration, including the design and construction of our Canadian facilities,” said Brian Athaide , CEO of TGOD. “Our recent $75 million bought deal financing ensures TGOD has the capital necessary to continue our international expansion at a rapid pace, extending sales and distribution to more channels throughout Europe and Latin America . While the Milestone Option has expired, many possibilities exist in the future for our two very complementary companies,” continued Athaide.