Canada’s Green Organic Dutchman amends credit agreement

By Rebecca Melvin

Concord, N.H., Nov. 30 – Green Organic Dutchman Holdings Ltd. has agreed to amend the terms of its Sept. 29 amended and restated credit agreement, lifting the term loan portion of the agreement and issuing warrants to its lender, according to a company release.

Specifically, the changes to the agreement among the company, a subsidiary and its Canadian lender, includes a C$3 million increase in the term loan to C$20 million, the issuance of warrants to the agent and certain affiliates of the agent, updates of certain covenants, and permission to terminate the credit agreement without the agent’s consent upon 90 days’ written notice.

All the other terms of the facility, which matures June 30, 2023, will stay the same and the limit of its C$25 million revolving credit facility will remain unchanged.

The company has issued a total of 3 million warrants to the agent and affiliates, each entitling the holder to purchase one common share for 60 months from the issue date at a price of C$0.14 per share.

"This amendment to the credit agreement is an important step for the company as it provides a significant improvement on our working capital position into 2022 as we continue to grow the business and move towards profitability," Sean Bovingdon, the company’s chief executive and interim chief financial officer, stated in the release.

Green Organic Dutchman is a premium certified organically grown cannabis company based in Toronto.

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