The Green Organic Dutchman Closes $5M Public Offering

The Green Organic Dutchman Holdings Ltd. TGODF TGOD, which recently merged with BZAM Holdings Inc. has closed its marketed public offering of units of the company. The offering was conducted by Clarus Securities Inc. on a "best-efforts" marketed basis.

Pursuant to the offering, the company issued 12.7 million units at a price of $0.40 per unit for aggregate gross proceeds of $5 million each unit will consist of one common share in the capital of the company and one common share purchase warrant. Each warrant will entitle the holder to purchase one common share at an exercise price of CA$0.50 for 60 months following the completion of the offering.

The net proceeds from the offering are expected to be used to repay previously incurred payables, including post-merger integration costs which are expected to yield future cost savings, and for working capital and general corporate purposes.

The company's largest shareholder following the BZAM acquisition, who is an insider of the company, participated in the offering and subscribed for an aggregate of 7.5 million units for gross proceeds to the company of $3 million. Accordingly, the offering is considered to be a "related party transaction" for purposes of Multilateral Instrument 61-101 – Protection of minority security holders in special transactions.

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