Less than two weeks after securing a 5 million Canadian dollar ($4 million) line of credit, Green Organic Dutchman Holdings is taking steps to raise another CA$20 million through a private placement of its securities.
The Canadian marijuana producer plans to use the money to build its planned cultivation facilities in Ontario and Quebec to meet demand for medical and recreational cannabis.
PI Financial Corp. will lead a private placement offering involving 4.2 million Green Organic Dutchman “units” at a price of CA$1.65 per unit, with the aim of generating CA$7 million. Each unit equals a share of the company’s common stock and a purchase warrant for another half a share.
Green Organic Dutchman also will engage in a non-brokered offering of 7.8 million units at CA$1.65, with the aim of generating another CA$13 million.
In April, the Hamilton, Ontario-based company raised CA$28 million in a non-brokered private placement.
Last week, Green Organic Dutchman secured a 75-acre property in Salaberry-de-Valleyfield, Quebec, about 50 kilometers (31 miles) outside Montreal.
Dutchman’s Ontario facility will sit on 100 acres, making it one of the largest licensed land parcels in Canada.
(Note: An earlier version of this story incorrectly reported that Green Organic Dutchman had already raised the CA$20 million. The story has been corrected to note that the company is taking steps to raise the money.)
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