Cannabis Businesses And Debts: Some Pot Companies Are Working Their Ways Through It

Cannabis Businesses And Debts: Some Pot Companies Are Working Their Ways Through It

The Green Organic Dutchman Holdings Ltd. TGODF TGOD, has agreed to issue an aggregate of 6.5 million common shares of the company, at a deemed issuance price of $0.40 per common share, to settle $2.6 million of aggregate indebtedness of the company, pursuant to loan settlement agreements with two of the company's largest shareholders. Such common shares will be issued in reliance on certain prospectus exemptions available under securities legislation and will be subject to a four-month plus one day statutory hold period. The debt settlement transaction remains subject to all necessary regulatory approvals including final acceptance by the Canadian Securities Exchange.

The shareholders are insiders of the company, and therefore the debt settlement transaction is considered to be a "related party transaction" for purposes of Multilateral Instrument 61-101 – Protection of minority security holders in special transactions.

COO Departure

The company announced the departure of Michel Gagné from his position as COO of the company, effective as at January 31, 2023. "Michel has been a valuable contributor to the company's growth and success in recent years" stated Matt Milich, CEO of TGOD. "We would like to wish Michel the best of luck with all of his future endeavors," added Matt.

Other Cannabis Companies Settling Debts

  • This week TILT Holdings Inc. TLLTF announced it managed to retire 94% of its legacy senior debt.

  • In December Indiva Ltd NDVAF entered into shares for debt agreements.

  • Red White & Blooms Brands, Inc. RWBYF announced that its board of directors has approved the settlement of $10.475 million in debt related to arm’s length financing through the issuance of common shares.

  • TerrAscend TRSSF reduced its debt by a $160 million.

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Photo: Benzinga edit with photo by Kindel Media on Pexels


Posted In: CannabisNewsPenny StocksSmall CapMarketsMatt MilichMichel Gagnepremium


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