Canadian cannabis company The Green Organic Dutchman Holdings Ltd. said Thursday it has signed agreements that give it up to C$103 million ($77.6 million) in financing. The news comes after the Toronto-based company said in October it would cut costs and adopt a plan to reduce its financing needs as it grapples with a smaller-than-expected Canadian market. The company been working to find alternative financing to raise the funds needed to complete construction of some of its facilities, after the financing on offer was prohibitively expensive. Green Organic Dutchman now says it has a financing package composed of a sale-leaseback of its Ancaster Energy Centre; a construction mortgage loan term sheet; and a convertible equity term sheet. The 10-year sale-leaseback arrangement has given the company proceeds of C$23 million. The mortgage loan term sheet is for C$40 million and is secured by the Ancaster facility along with Valleyfield. The convertible term sheet is for $30 million U.S. dollars and has a 5% coupon. The company will use the funds to complete construction of the processing facility at Ancaster and to complete construction of six zones in its Valleyfield hybrid greenhouse. U.S.-listed shares were not yet active premarket, but have fallen 61% in 2019, while the ETFMG Alternative Harvest ETF (MJ) has fallen 28% and the S&P 500 has gained 23%.
-Ciara Linnane; 415-439-6400; AskNewswires@dowjones.com
(END) Dow Jones Newswires
November 14, 2019 11:04 ET (16:04 GMT)
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