The Green Organic Dutchman Holdings Ltd. (TSX: TGOD.TO) (US: TGODF) announced Friday that Aurora Cannabis allowed its first milestone option to expire. The Investor Rights Agreement between TGOD and Aurora Cannabis Inc. granted the latter company the right to buy an added 8% of the shares of the Company.

Aurora had the opportunity to buy more of TGOD 3 months after that company’s shares listed on the Toronto Stock Exchange (TSX). The price of the option was set at a 10% discount to the 10-day volume weighted average price.

Furthermore, Aurora allowed the outstanding Milestone Options to acquire additional interests in TGOD to expire.

Takeoff agreement still in place

The two companies still have a partnership as Aurora reserves the right to buy 20% of TGOD’s cannabis. The price of pot under that agreement is based on a revenue sharing arrangement. TGOD’s Canadian facilities are currently under construction in Canada.

What’s behind the move?

So does Aurora’s move mean they no longer believe in TGOD? If they had the opportunity to buy into the company at a 10 percent discount, why give that up? The relationship still exists, with a 20 percent offtake standing, but the Goldilocks arrangement isn’t what we once thought it would be.

Aurora Cannabis will be the second Canadian pot company to list on the NYSE after Canopy Growth Corporation (NYSE: CGC.N) (TSX: WEED.TO) later this month. Aurora expects its shares to trade on the NYSE by end of October this year.

Brian Athaide, CEO of TGOD, maintained confidence in their agreement and his company. “Aurora has been an incredible partner to date, and both parties plan to continue the partnership. They invested $78.1 million into our Company and added tremendous value across multiple areas of collaboration, including the design and construction of our Canadian facilities.”

He also assured investors the company is well-funded. “Our recent $75 million bought deal financing ensures TGOD has the capital necessary to continue our international expansion at a rapid pace, extending sales and distribution to more channels throughout Europe and Latin America. While the Milestone Option has expired, many possibilities exist in the future for our two very complementary companies.”

According to the company, The Green Organic Dutchman Holdings Ltd.’s cannabis is premium and organic. The company has markets in Canada, Europe, and Latin America and cultivation facilities in Ontario, Quebec, and Jamaica.