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July 01, 2022

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The Green Organic Dutchman (TGOD.C) reconfigures their debt load

The Green Organic Dutchman (TGOD.C) reconfigures their debt load

The Green Organic Dutchman Holdings (TGOD.C) and their lender came to an agreement to amend the terms of their Sept. 29, 2021 debt and credit agreement today.

The cannabis industry hasn’t been doing so great over the past few years, and TGOD’s regular spate of losses puts that on full display. Even a cursory look at their press release history shows double-digit losses stretching back years, and one begins to wonder if this company, which is a few years old now, will ever be able to get it together.

“As we continue to grow our market share in the Canadian retail cannabis market, we are seeing opportunities to accelerate our revenue growth profile. Having immediate access to an additional $4 million in the term facility will allow us the flexibility to explore potential cultivation expansion in B.C. and Quebec and meet consumer demand for TGOD, Highly Dutch and Cruuzy products across the country. Additionally, the relaxation of covenants provides us the ability to hit profitability while maximizing shareholder value.” said Sean Bovingdon, CEO of TGOD.

The Green Organic Dutchman is a cannabis company involved in the recreational market, sporting multiple different brands nobody really knows anything about in Canada because of Canadian regulations. In other countries, among them South Africa, Australia and Germany, that may be different. Everything they grow is certified organic, including living soil, filtered rainwater, sunlight and natural inputs.

The debt changes include:

  • increase the term portion of the credit facility by $4,000,000 to $24,000,000;
  • amend the EBITDA financial covenant to take effect June 30, 2022;
  • remove the required $6,000,000 prepayment via funds raised by public issuance of equity securities in the Company.;
  • remove the required $4,000,000 prepayment via funds raised by the sale of HemPoland Sp. Z o.o.; and
  • introduce certain prepayment fees in the combined amount of 2% of any prepayments; subject to the satisfaction of the various conditions set out therein. All other terms of the credit facility will remain the same as before, including the maturity date of June 30, 2023.

Let’s look at the chart.

debt

Source: stockwatch.com

The chart adequately displays TGOD’s fortunes for the quarter with a new range appearing in early April, setting a new resistance point of $0.116.

—Joseph Morton

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Dave

Good article,
But man, they just keep loosing money.
With over 750m o/s, and the bleeding keeps going $$$$$,
cant see this weed going anywhere, greener pastures elsewhere.

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