The Green Organic Dutchman Boosts Financing to $160 Million with Strategic Investment by Aurora Cannabis

The Green Organic Dutchman Holdings Ltd., also known as TGOD, recently announced the closing of $112 million in private placement financing, including a strategic investment by marijuana industry powerhouse Aurora Cannabis Inc. (OTCQX: ACBFF) (TSX: ACB) of $55 million. TGOD issued 67,878,788 units at a price of $1.65 per unit. Each unit included one common share of the company and a half common share purchase warrant that can be converted to a full share at the exercise price of $3 each during the next three years.

The investment fully funds the expansion of TGOD’s combined 970,000 square-foot ultra-high technology greenhouse facilities in Ontario and Quebec, Canada. TGOD’s expansion and strategic partnership with Aurora positions the company to be one of the largest and most technologically advanced cannabis production facilities in the world and sets the foundation for its highly anticipated 2018 IPO.

Aurora Cannabis, the second-largest marijuana producer in Canada, made headlines on January 24 when it agreed to buy another rival, CanniMed Therapeutics Inc., in what amounted to the world’s biggest marijuana industry transaction, bringing the value of cannabis deals so far this year to $1.2 billion and more than doubling such transaction values for all of 2017, according to Thomson Reuters (http://ibn.fm/zfY7T).

The Aurora investment in TGOD is accompanied by a supply agreement providing Aurora the right to purchase up to 20 percent of TGOD’s annual production of organic cannabis, and TGOD will receive additional services from Aurora and its subsidiary, Aurora Larssen Projects Inc. (ALPS). Furthermore, positioning Aurora as a strategic investor is important for many reasons, including, but not limited to:

• Acceleration of TGOD’s construction and build-out
• TGOD to receive advanced insight into Aurora’s 800,000 sq. ft. state-of-the-art facility, Aurora Sky
• Aurora and TGOD are building similarly sized world class operations
• Aurora has a group of partnership companies that can provide us a suite of services that are best in class, tested and already proven
• Investment from one of the largest cannabis companies in the world validates and endorses TGOD’s business plan and accomplishments
• This significantly reduces TGOD’s time to market while limiting costs and reducing risks
• Aurora’s CEO, Terry Booth, is a visionary that TGOD is excited to partner with
• The operation is now fully funded
• TGOD stated “we applaud Aurora’s innovation & execution and believe working together adds significant value that would be difficult to replicate alone.”

TGOD’s mission is to produce ultra-low cost, premium-quality organic cannabis for medical and recreational uses, according to a news release announcing the financing closure (http://ibn.fm/M2lr8). The company’s facilities operate with close to a zero-carbon footprint and will be certified under Leadership in Energy and Environmental Design (LEED) standards.

“Teaming up with Aurora, the industry’s innovation leader, provides us with a stable, supportive shareholder, through whom we have access to best-in-class technologies and industry know-how,” TGOD President Csaba Reider stated in a news release. “This will significantly accelerate our time to market and establish TGOD as the world’s leading provider of premium organic cannabis.”

The partnership includes a “standstill” agreement acknowledging that Aurora can’t acquire TGOD during the next 18 months, as the larger company did following months of jostling with CanniMed, allowing TGOD opportunity to develop its potential. The private placement financing closure includes the addition of 2,000 new shareholders, bringing the company to more than 4,000 shareholders total. The company’s combined facilities in Ontario and Quebec will be capable of producing 116,000 kg of its 36 premium cannabis strains, and it is already licensed to cultivate medical cannabis in Canada. Investment in the company now totals $160 million.

For more information, visit the company’s website at www.TGOD.ca

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