Green Organic Dutchman Holdings (OTCMKTS:TGODF) just proved how good it could get with raising capital. This is after it succeeded at signing a $103 million deal in funding.
The main elements of the financing package
This could be viewed from three distinct perspectives. The first one is the Ancaster Energy Centre linked definitive agreement. This is in line with a sale-leaseback tied to it. The second is a loan term sheet of the company’s construction mortgage. This company’s convertible equity note term sheet is the last one.
The CEO of TGOD Brian Athaide is quite pleased about the company’s bargaining power. According to the leader, this just shows the level of confidence they have been able to win over from their financial partners.
The other way to look at the matter would be the bargaining power of this company’s assets. This is one of those companies that have succeeded in doing much to ramp up their transparency, corporate governance, and accountability.
The definitive agreement
The company must oversee the successful execution of the close of the definitive agreement. This is an agreement spanning about ten years. Reports indicate that after this duration, TGOD would be free to repurchase the facility. However, this time around, it will have to adhere to the due diligence and proper documentation. No one can guarantee that the closing will go as planned. It might take a shorter or longer time. Challenges might pop up in line with the satisfaction of the conditions.
TGOD has also signed a term sheet that will see it receive USD$30 million in funding. This is a non-binding term sheet, and several conditions accompany it.
Some of these include entry into legal documentation that will bind the company and some of its financial partners.
The business guru will also be required to show a receipt indicating the required regulatory approvals.
If all moves according to plan, by the end of 2019, the company will have closed most of these transactions. TGOD says that the finances have come in good time. The point of focus is now the making of expansions and also the quest for higher profitability.