The Green Organic Dutchman Holdings Ltd. (the "Company" or "TGOD") (TSX:TGOD) (US:TGODF) is pleased to announce the closing of the previously announced acquisition of HemPoland. The transaction has received approval from the Toronto Stock Exchange and cements the Company's commitment to building shareholder value through international expansion.
"HemPoland has proven an ability to execute through quality product development and strong brand awareness. We are incredibly pleased with this transaction, a key milestone in our long-term acquisitions strategy. The acquisition is accretive to our shareholders, delivers immediate revenue, and opens a new vertical for TGOD. We're incredibly excited to have such an innovative and strong entrepreneurial team join our TGOD family," said Brian Athaide, TGOD's CEO.
Europe is home to three-quarters of a billion potential consumers, and HemPoland is a leading manufacturer and marketer of premium CBD oils within this market. This acquisition provides TGOD with immediate revenue, access to HemPoland's significant distribution network, state-of-the-art hemp oil extraction technology and the premium top selling Cannabigold brand.
In connection with the transaction, TGOD has paid US$7.75 million in cash and has issued 1,968,323 restricted shares that will be escrowed for a term of three years from closing. Additionally, there is a contingent consideration of up to 3,047,722 deferred shares based on HemPoland achieving US$32 million in EBITDA for the financial year 2021. TGOD will invest a further US$10.3 million in HemPoland to fund innovative product development and rapid European expansion.
On Behalf of the Board of Directors,
The Green Organic Dutchman Holdings Ltd.
About the Green Organic Dutchman Holdings Ltd.
The Green Organic Dutchman Holdings Ltd. is a research & development company licensed under the Access to Cannabis for Medical Purposes Regulations ("ACMPR") to cultivate medical cannabis. The Company carries out its principal activities producing cannabis from its facilities in Ancaster, Ont., pursuant to the provisions of the ACMPR and the Controlled Drugs and Substances Act (Canada) and its regulations.
The Company grows high quality, organic cannabis with sustainable, all-natural principles. TGOD's products are laboratory tested to ensure patients have access to a standardized, safe and consistent product. TGOD has a funded capacity of 170,000 kg and is building 1,382,000 sq. ft. of cultivation facilities in Ontario, Quebec and Jamaica.
The Company has developed a strategic partnership with Aurora Cannabis Inc. (ACB.TO) whereby Aurora has invested approximately C$78.1 million for a 20% off-take agreement on Canadian production. The Company has raised approximately C$350 million dollars and has over 20,000 shareholders.
TGOD's Common Shares and warrants issued under the indenture dated November 1, 2017 trade on the TSX under the symbol "TGOD" and "TGOD.WT", respectively.
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