TGOD stock is moving higher this morning after The Green Organic Dutchman (TSX:TGOD) (OTCQX:TGODF) said it has entered into a binding term sheet with Maynbridge Capital Inc for a senior secured first-line credit facility of up to $41.7 million.
Big Relief
The cannabis industry has had its fair share of troubles over the past months, and many of the leading companies in the sector have struggled with regards to their financing. One of those is The Green Organic Dutchman (TGOD), and today the company made an announcement about its efforts to raise capital.
The company revealed that it has walked away from two financing deals worth $63 million in total. One was a sale and leaseback deal with Ancaster Energy Center worth $23 million, while the other was a $40 million binding term sheet meant as a construction mortgage.
However, the news was not all bad as TGOD also announced that it has managed to get a senior secured debt facility worth $41 million. That being said, it should be noted that the company has only secured $26.7 million and around $15 million remains uncommitted at this point.
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TGOD Stock is Down 77% in Six Months
TGOD stock has been beaten down over the past six months and lost as much as 77%. While the troubles with the industry are definitely a factor, the decision by Aurora Cannabis (TSX:ACB) (NYSE:ACB) to sell its stake in The Green Organic Dutchman proved to be a major blow. The sudden deluge of TGOD stock in the market hammered the stock price further.
In addition to that, back in October, the company announced that it was facing difficulties with regards to financing the construction of its processing facility, and so was going to explore alternative options in order to raise capital. That proved to be another trigger for a selloff in TGOD stock, but that was not the end of the company’s troubles.
At the end of November, TGOD announced that it was going to have a bought deal public offering by way of which it was going to raise $22 CAD million. The company hired an underwriter for the offering of 29,334,000 units for $0.75 each. That announcement resulted in a fall in TGOD stock price as well.
At the time of writing, TGOD stock is up 4% at $0.845.
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