The Green Organic Dutchman IPO Is Just Days Away

We’re inching closer to Canada’s marijuana legalization day as Bill C-45 goes for a second reading. The good news is seemingly less than six months away, and ahead of this big day, the industry is gearing up for the biggest marijuana IPO in its history—that is, The Green Organic Dutchman IPO.

This producer of organic pot is about to go public in the most highly-anticipated IPO of the year. The Green Organic Dutchman Holdings Ltd. (TGOD), which planned to raise between $75.0 million and $100.0 million, has ended up with an oversubscribed and possibly over-allotted offering. Simply put; investors have been scrambling to get a piece of TGOD before shares hit the market.

The company has already managed to raise roughly $102.0 million, a little more than what MedReleaf Corp (OTCMKTS:MEDFF, TSE:LEAF) raised in its IPO last year, which, until now, was the biggest-ever marijuana IPO. Bear in mind that this number doesn’t yet include any proceeds possible from the exercise of over-allotments.

For reference, The Green Organic Dutchman is the same company that pulled in a $55.0-million investment from industry leader Aurora Cannabis Inc (OTCMKTS:ACBFF, TSE:ACB) earlier this year, which accounted for Aurora’s 17% stake in the former.




So, cutting straight to the chase, if you’re seeking information on TGOD IPO, you’ve come to the right place. I’ll be answering seven imperative questions about The Green Organic Dutchman IPO that may guide you in making an informed decision. But of course, you must do your own research before you jump in with both feet.

What Is The Green Organic Dutchman?

The Green Organic Dutchman is a pure marijuana company in that it produces and sells organic cannabis. Nothing else, so far.

The Ontario-based company has a production facility in Hamilton spanning 100 acres, which is currently being expanded. Meanwhile, it has acquired another facility in Salaberry-de-Valleyfield, Quebec, where it is building a ginormous 820,000-square-foot facility, which will include a greenhouse site for cannabis production, a research and development lab, and a flagship dealership for selling its organic strains.

Find out more about the company in my previous coverage here.

What Will the Price of Its Stock Be & How Much Money Has the IPO Raised?

TGOD stock is priced at $3.65 apiece. A total of 28-million units have been sold to raise a total of $102.0 million, minus underwriters’ fees. Net proceeds to the company amount to a little over $96.0 million.

What Will the Ticker Symbol Be and Where Will the Stock Trade?

The Green Organic Dutchman will trade under its acronym “TGOD” on the Toronto Stock Exchange (TSE), the largest exchange in Canada.

How Will the Company Use These Proceeds?

The proceeds will primarily be served toward building its Quebec facility and partly diverted toward scaling its Hamilton facility (both mentioned earlier).

Who Are the Underwriters?

Canaccord Genuity Group Inc (TSE:CF)—the largest independent investments dealer in Canada—is leading the offering, along with PI Financial Corp.

As has been the case with other marijuana IPOs, no major Canadian banks are involved in The Green Organic Dutchman IPO.

Who’s Running the Show?

The company chief is Robert Anderson, who holds years of experience in venture capitalism. The board of directors consists of marijuana industry insiders who’ve previously helped get other marijuana companies off the ground, namely Emblem Corp (OTCMKTS:EMMBF, CVE:EMC) and OrganiGram Holdings Inc (OTCMKTS:OGRMF, CVE:OGI).

When Will the Shares Begin to Trade?

TGOD IPO date is set for April 12, 2018, which is a week from now. So, mark your calendars!

Analyst Take

Up until now, MedReleaf was the biggest marijuana IPO, so I’ll use it as a benchmark. Recall that within a week of going public, skeptics made a lot of noise on the stock’s paltry performance, which, by the way, was also the worst in the Canadian IPO market’s 20-year history.

But today, a year later, MedReleaf stock is trading 70% higher than its IPO price. My point is that not all IPOs turn out to be duds. The Green Organic Dutchman IPO, for one, certainly deserves a second look if you’re looking to ride Canada’s pot boom.