GREY:BZAMF - Post by User
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smallcapcanadaon May 02, 2018 3:39pm
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Post# 27972290
Is Aurora’s Investment in TGOD Leading to Majority Ownership
Is Aurora’s Investment in TGOD Leading to Majority OwnershipACB already had a pretty sizable chunk of TGOD but increased their stake today, purchasing 17.5% of the IPO issue, or 6.3 million units, priced at $3.65 per unit, for a total investment of $23.1 million. Each unit consists of one common share and one half of one common share purchase warrant exercisable at $7.00 per common share.
The strategic partnership struck earlier this year should benefit ACB tremendously- it seems the medical MJ market could be dominated by organic MJ and TGOD is currently completing a 14,000 kg per year facility in Ancaster, as well as is constructing an 820,000 square foot, 104,000 kg per annum, ALPS-designed (Aurora Larssen Projects Inc.) high-technology cannabis facility in Valleyfield, Quebec.
I think the key to all of this is that Aurora has an option to increase its ownership to over 50% in relation to TGOD achieving certain operational and financial milestones.
While there is still a lot to be accomplished by TGOD, clearly they need to produce, the market already loves the company and based on their technology and concentration on organic MJ they could turn ACB into a huge winner in the MJ market.
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