The Green Organic Dutchman Renews Canadian Credit Facility until June 2023

Rhea-AI Summary

The Green Organic Dutchman Holdings Ltd. (TGOD) has renewed its Canadian credit facility, extending the maturity date to June 30, 2023. This renewal includes an additional $1 million in working capital, raising the term loan portion to $17 million while reducing the total credit facility from $30 million to $25 million. The facility is secured by the company’s Ancaster greenhouse and accounts receivable. TGOD aims to achieve positive EBITDA monthly by March 31, 2022, which will enhance its working capital position and support growth towards profitability.

Positive

• Renewed credit facility extending maturity to June 30, 2023.
• Secured additional $1 million in working capital.
• Reduction of credit facility from $30 million to $25 million reduces non-utilization fees.
• Increased term loan to $17 million from $16 million, improving liquidity.
• Financial covenant requires achievement of positive EBITDA by March 31, 2022.

Negative

• Reduction of overall credit facility limits financial flexibility.
• Increased term loan indicates previous reliance on debt for operations.

• Renewed Canadian Credit Facility, which will mature on June 30, 2023
• Lender to provide additional $1 million in working capital, to be added to the term loan component in October 2021.
• Right-sized the overall available facility from $30 million to $25 million, reducing expected non-utilization fees.

TORONTO, Sept. 30, 2021 /PRNewswire/ - The Green Organic Dutchman Holdings Ltd. (the "Company" or "TGOD") (CSE: TGOD) (US-OTC: TGODF), a leading producer of premium certified organically grown cannabis, is pleased announce that it has agreed with its remaining Canadian lender, which has security of the Company's main operating facility and certain working capital, to renew its credit facility (the "Credit Facility") and extend the maturity date to June 30, 2023.  

As part of the renewal, the Company's overall Credit Facility will be reduced from $30 million to $25 million total, within which the term loan portion will be increased to $17 million from $16 million. The revolving component will represent the $8 million balance of the total. The Credit Facility is secured primarily by the Company's Ancaster hybrid greenhouse facility and trade accounts receivable. The Company will pay a 2% commitment fee in Common Shares. In exchange, the Company has agreed to a financial covenant requiring achievement of positive EBITDA on a monthly basis by March 31, 2022.  All other terms for the facility will remain the same as before.

"We are very pleased to be able to renew and right-size our Credit Facility which shows a demonstration of continued support from our lender" said Sean Bovingdon, TGOD's CEO and Interim CFO. "The renewed maturity date, coupled with some expected cash savings on fees, provides a significant improvement on the Company's working capital position which enables us to continue to grow our business and move towards profitability" added Bovingdon.

About The Green Organic Dutchman Holdings Ltd.
The Green Organic Dutchman Holdings Ltd. (CSE: TGOD) (US–OTC: TGODF) is a premium certified organically grown cannabis company focused on the health and wellness market.  Its organic cannabis is cultivated in living soil, as nature intended.  The Company is committed to cultivating a better tomorrow by producing its products responsibly, with less waste and impact on the environment. Its Canadian facilities have been built to LEED certification standards and its products are sold in recyclable packaging.  In Canada, TGOD sells dried flower and oil, and recently launched a series of next–generation cannabis products such as hash, vapes, organic teas and dissolvable powders.  Through its European subsidiary, HemPoland, the Company also distributes premium hemp CBD oil and CBD-infused topicals in Europe. By leveraging science and technology, TGOD harnesses the power of nature from seed to sale.

TGOD's Common Shares and Warrants issued under the indentures dated December 19, 2019, June 12, 2020, October 23, 2020 and December 10, 2020 trade on the CSE under the symbol "TGOD", "TGOD.WS", "TGOD.WR", "TGOD.WA", and "TGOD.WB" respectively. TGOD's Common Shares trade in the US on the OTCQX under the symbol "TGODF". For more information on The Green Organic Dutchman Holdings Ltd., please visit www.tgod.ca.

Cautionary Statements
This news release includes statements containing certain "forward–looking information" within the meaning of applicable securities law ("forward–looking statements"). Forward looking statements in this release include, but are not limited to, statements with respect to the terms of the Company's credit facilities, statements about achieving positive EBITDA and/or profitability and statements about achieving growth. Forward–looking statements are frequently characterized by words such as "plan", "continue", "expect", "project", "intend", "should", "believe", "anticipate", "estimate", "may", "will", "potential", "proposed" and other similar words, or statements that certain events or conditions "may" or "will" occur. These statements are only predictions.  Various assumptions were used in drawing the conclusions or making the projections contained in the forward–looking statements throughout this news release. Forward–looking statements are based on the opinions and estimates of management at the date the statements are made and are subject to a variety of risks and uncertainties (including market conditions) and other factors that could cause actual events or results to differ materially from those projected in the forward–looking statements, including those risk factors described in the Company's most recent Annual Information Form filed with Canadian securities regulators and available on the Company's issuer profile on SEDAR at www.sedar.com. Although the Company believes that the assumptions and factors used in preparing the forward-looking information or forward-looking statements in this news release are reasonable, undue reliance should not be placed on such information and no assurance can be given that such events will occur in the disclosed time frames or at all. The forward-looking information and forward-looking statements included in this news release are made as of the date of this news release. The Company is under no obligation, and expressly disclaims any intention or obligation, to update or revise any forward–looking statements, whether as a result of new information, future events or otherwise, except as expressly required by applicable law.

Neither the CSE nor the CSE's Regulation Services Provider (as that term is defined in the policies of CSE) accept responsibility for the adequacy or accuracy of this release.

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SOURCE The Green Organic Dutchman Holdings Ltd.

FAQ

What is the significance of TGOD renewing its Canadian credit facility?

The renewal of TGOD's Canadian credit facility is significant as it extends the maturity date to June 30, 2023, and enhances the company's working capital by providing an additional $1 million.

When does the new credit facility for TGOD mature?

The renewed credit facility for TGOD matures on June 30, 2023.

What are the financial requirements for TGOD's credit facility?

TGOD must achieve positive EBITDA on a monthly basis by March 31, 2022, as part of the financial covenant associated with the credit facility.

How much was the total credit facility reduced for TGOD?

TGOD's total credit facility was reduced from $30 million to $25 million.