TGOD Spin Off Provides Cannabis Investors with Ground Floor Opportunity


Ryan Allway

July 25th, 2018

Exclusive, News, Top News


The Green Organic Dutchman Ltd. (TSX: TGOD) (OTCQX: TGODF) raised more than C$115 million in an initial public offering at C$3.65 about three months ago. Since then, the stock soared to a high of C$7.87 before settling in the C$6.00 range over the past few weeks, netting investors a return of over 60 percent (assuming a sell price of $6) in less than six months. Investors that missed the original IPO may have another opportunity in the form of a planned spin off during the fourth quarter of this year.

Invest Alongside Management and Insiders in a Seed Round

The same team behind The Green Organic Dutchman’s successful IPO plans to create a new company, TGOD Acquisitions, that will be spun off as a special dividend providing TGOD shareholders the ability to purchase a Unit in TGOD Acquisitions for $0.50. Management believes that the new IPO presents investors with a unique opportunity to tap into TGOD’s significant expertise and participate at a seed level that’s typically reserved for management, employees, close friends and family.

“This is an incredible opportunity for TGOD to transfer expertise and monetize our proprietary knowledge from the Canadian marketplace,” said TGOD CEO Brian Athaide. “We will partner with innovative and disruptive companies that we can assist with capital market knowledge and unique retail-exclusive financing methods. The intention is to raise additional capital and list TGOD Acquisition on the Canadian Securities Exchange.”

The new company will focus on strategic acquisitions and worldwide opportunities that are not core to TGOD’s own business in Canada. With its listing on the Canadian Securities Exchange the new company will be permitted to participate in the United States cannabis industry, which is off-limits for companies that are listed on the Toronto Stock Exchange. It could also participate in other markets around the world, including growing European markets.

A Closer Look at the Transaction

The Green Organic Dutchman will distribute a warrant to acquire a TGOD Acquisitions unit for $0.50 to its shareholders. Each unit will consist of one share plus an additional warrant that will be triggered by a subsequent financing following the initial offering. The distribution will be paid on the basis of one warrant for every 6.67 TGOD shares owned on the record date, which will be fixed by the board of directors over the near-term.

The only way to increase exposure to TGOD Acquisitions is through an increased position in TGOD common shares prior to the record date, that has yet to be set.

TGOD and TGOD Acquisitions will enter into a repayable funding agreement whereby TGOD will provide C$25 million of working capital to TGOD Acquisitions that will be repayable by TGOD Acquisitions prior to the completion of any investment. In consideration, TGOD Acquisitions will issue a restricted warrant to purchase 50 million common shares for a period of 25 years from the date upon TGOD Acquisitions beings trading on the CSE.

Units that aren’t purchased by investors will be backstopped by TGOD management. Following the completion of the spin off, TGOD Acquisitions will operate at arm’s length to TGOD and will have an independent board of directors and management team. The details of the new board and management team will be announced with the filing of materials at a special meeting of TGOD shareholders to approve the transaction.

TGOD VP of Investor Relations, Danny Brody, gives an overview of the company’s current position in the legal cannabis market as a certified organic producer. He also discusses the company’s ambitious international plans, and TGOD’s positioning in the emerging edibles and beverages space. Filmed at the O’Cannabiz Expo in Toronto, June 8, 2018.

Looking Ahead

The Green Organic Dutchman Ltd.’s (TSX: TGOD) (OTCQX: TGODF) plans to spin off TGOD Acquisitions could generate tremendous value for shareholders. Rather than expanding its own scope, the company is providing its shareholders with an opportunity to invest in an internationally-focused cannabis company that leverages the same intrinsic value. TGOD shareholders can then focus on a pureplay in the Canadian market.

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

Disclaimer

The above article is sponsored content. Emerging Growth LLC, which owns CannabisFN.com and CFN Media, has been hired to create awareness. Please follow the link below to view our full disclosure outlining our compensation: https://www.cannabisfn.com/legal-disclaimer/

Ryan Allway

About Ryan Allway

Mr. Allway has over a decade of experience in the financial markets as both a private investor and financial journalist. He has been actively involved in the cannabis industry since its inception, covering public and private companies.


Network Partners

Follow Us on Social Media

About CFN Media

CFN Media (CannabisFN) is the leading creative agency and media network dedicated to legal cannabis. We help marijuana businesses attract investors, customers (B2B, B2C), capital, and media visibility. Private and public marijuana companies and brands in the US and Canada rely on CFN Media to grow and succeed.

CFN launched in June of 2013 to initially serve the growing universe of publicly traded marijuana companies across North America. Today, CFN Media is also the digital media choice for the emerging brands in the space.

Learn How Your Company can Be Covered on CFN Media

Learn More About the CFN Media Sponsored Content Program

Disclaimer: Matters discussed on this website contain forward-looking statements that are subject to certain risks and uncertainties that could cause actual results to differ materially from any future results, performance or achievements expressed or implied by such statements. Emerging Growth LLC dba TDM Financial, which owns CannabisFN, is not registered with any financial or securities regulatory authority and does not provide nor claims to provide investment advice or recommendations to readers of this release. Emerging Growth LLC dba TDM Financial, which owns CannabisFN, may from time-to-time have a position in the securities mentioned herein and will increase or decrease such positions without notice. The Information contains forward-looking statements, i.e. statements or discussions that constitute predictions, expectations, beliefs, plans, estimates, or projections as indicated by such words as "expects", "will", "anticipates", and "estimates"; therefore, you should proceed with extreme caution in relying upon such statements and conduct a full investigation of the Information and the Profiled Issuer as well as any such forward-looking statements. Any forward looking statements we make in the Information are limited to the time period in which they are made, and we do not undertake to update forward looking statements that may change at any time; The Information is presented only as a brief "snapshot" of the Profiled Issuer and should only be used, at most, and if at all, as a starting point for you to conduct a thorough investigation of the Profiled Issuer and its securities and to consult your financial, legal or other adviser(s) and avail yourself of the filings and information that may be accessed at www.sec.gov, www.pinksheets.com, www.otcmarkets.com or other electronic sources, including: (a) reviewing SEC periodic reports (Forms 10-Q and 10-K), reports of material events (Form 8-K), insider reports (Forms 3, 4, 5 and Schedule 13D); (b) reviewing Information and Disclosure Statements and unaudited financial reports filed with the Pink Sheets or www.otcmarkets.com; (c) obtaining and reviewing publicly available information contained in commonlyknown search engines such as Google; and (d) consulting investment guides at www.sec.gov and www.finra.com. You should always be cognizant that the Profiled Issuers may not be current in their reporting obligations with the SEC and OTCMarkets and/or have negative signs at www.otcmarkets.com (See section below titled "Risks Related to the Profiled Issuers, which provides additional information pertaining thereto). For making specific investment decisions, readers should seek their own advice and that of their own professional advisers. Emerging Growth LLC dba TDM Financial, which owns CannabisFN, may be compensated for its Services in the form of cash-based and/or equity-based compensation in the companies it writes about, or a combination of the two. For full disclosure, please visit: https://www.cannabisfn.com/legal-disclaimer/. A short time after we acquire the securities of the foregoing company, we may publish the (favorable) information about the issuer referenced above advising others, including you, to purchase; and while doing so, we may sell the securities we acquired. In addition, a third-party shareholder compensating us may sell his or her shares of the issuer while we are publishing favorable information about the issuer. Except for the historical information presented herein, matters discussed in this article contain forward-looking statements that are subject to certain risks and uncertainties that could cause actual results to differ materially from any future results, performance or achievements expressed or implied by such statements. Emerging Growth LLC dba TDM Financial, which owns CannabisFN, is not registered with any financial or securities regulatory authority, and does not provide nor claims to provide investment advice or recommendations to readers of this release. Emerging Growth LLC dba TDM Financial, which owns CannabisFN, may from time to time have a position in the securities mentioned herein and will increase or decrease such positions without notice. For making specific investment decisions, readers should seek their own advice and that of their own professional advisers. Emerging Growth LLC dba TDM Financial, which owns CannabisFN, may be compensated for its Services in the form of cash-based and/or equity- based compensation in the companies it writes about, or a combination of the two. For full disclosure please visit: https://www.cannabisfn.com/legal-disclaimer/.

Copyright © TDM Financial LLC · All Rights Reserved · Privacy Policy · Legal Disclaimer

loading