THE GREEN ORGANIC DUTCHMAN HOLDINGS LTD. PROVIDES SHAREHOLDER UPDATE AND ANNOUNCES $10 MILLION NON-BROKERED FINANCING Dear Shareholders, It is with great pleasure that I address you today as shareholders of our company, The Green Organic Dutchman Holdings Ltd. ( TGOD ). Our Company has recently made major developments that I would like to report on. Additionally, I would like to announce a new financing. Firstly, I would like to thank all of you who participated in our last financing, which I m pleased to report was oversubscribed by 300%, allowing us to close on $13,200,000 with over 1,300 new shareholders. Please always remember that we are a shareholder driven company, managed and directed by our shareholders. UPDATE HIGHLIGHTS The Company successfully completed a heavily over-subscribed $13,200,000 initial financing. TGOD has secured an additional and contiguous 75-acre property bringing the incumbent land package to 100 acres. The company Company has added significantly to both the corporate, operational and project management teams. Engineering and design for Phase 1 Expansion of 145,000 sq. ft. commenced in January. This expansion will increase the current annual productive capacity from 1,000KG s to over 14,000KG s. Engaged Larssen Greenhouse Engineering, who specializes in the technical design and building of the most modern and sophisticated hybrid-greenhouses in the industry. Strategic Partnership formed with Eaton, one of the worlds largest power management and energy optimization companies. Strategic Partnership formed with Ledcor, one of Canadas largest construction management companies. TGOD announces its last planned financing prior to IPO.
PROPERTY ACQUISITION The Company secured 75-acres of contiguous land, directly adjoining the currently ACMPR licensed production facility. This additional land sets TGOD apart from much of its peers, allowing for large-scale and accelerated expansion plans. PHASE 1 EXPANSION Engineering and design for our Phase 1 expansion are well underway, and management anticipates construction to begin late in Q2, 2017. The Company has expedited its original plan and increased its size and scope, we will be executing on Phase 1, two-part expansion: Hybrid Expansion: A 125,000 sq. ft. of state-of-the-art, automated, hybrid facility Additional annual capacity of ~11,000KG s Anticipated Q2 2018 initial harvest Enclosed Expansion: A 20,000 sq. ft. State of the art indoor facility Additional annual capacity of ~2,000KG s Anticipated Q1 2018 initial harvest Following the completion of the Phase 1 expansion, TGOD s production capacity is expected to be ~14,000KG s annually. The Company has built a team of highly experienced power, energy optimization and construction professionals to ensure this expansion is delivered not only on-time and on-budget but also completed to the highest possible standards, potentially setting a new standard for our industry.
OPERATIONAL MANAGEMENT TEAM ADDITIONS (full bios can be found in presentation) Amer Cheema, M.Sc. (Hons.): Agriculture and a PhD Candidate in Post-Harvest Biology Award winning head grower with 20+ years experience in production & management of high-tech commercial greenhouses Lola Millerman, B.Sc. in Biology from UBC Senior Microbiologist and Laboratory Supervisor with Nestle Canada. Brandan Leroux, M. Sc. Candidate: Environmental & Life Science, Trent University Developed and implemented a research thesis in plant genetics with emphasis on environmental resource allocations specifically related to vegetative and sexual propagation. Chad Rigby, BSc in Environmental Biology from the University of Guelph, minor in Plant Sciences and Plant Biochemistry Previously worked with another licensed producer as production assistant. CORPORATE MANAGEMENT TEAM ADDITIONS: (full bios can be found in presentation) Jim Shone, MBA Queens, CFA Stevan Perry 20 years in the Canadian financial services industry, focused on small to medium sized enterprises. 12 years commercial banking experience (BDC for 7 years and factoring company for 4 ½ years) 20+ years as senior energy services and major projects business development executive. Successfully developed and delivered on business models and project plans for fortune 100 companies such as Honeywell and Eaton. Matt Schmidt, MBA Laurier University
Previously Vice President, Investment Banking at Echelon Wealth Partners - responsible for the firm s initiation into the Canadian Cannabis sector. Danny Brody 10+ years experience in finance and holds a Chartered Investment Manager (CIM) designation from the Canadian Securities Institute (CSI). Previously Director of IR at Emblem Corp. ADVISORS ADDITIONS: (full bios can be found in presentation) Brian Ast, MBA, CFA, P.Eng 20+ years experience in project bid managemnt, contract and cost control for both the public and private sector. Currently Director, Public & Private Partnerships with Honeywell Building Solutions. Harold Ruckpaul 31 years of technical, operational and sales management experience with developing and implementing power systems solutions to primary market segments on a global scale. Justin Fraser 20+ years experience in team building, including the ability to select and implement strategic relationships for optimal business performance. Currently Chairman & CEO of the Trades Labour Group. We hope that you can appreciate the amount of work that has been accomplished in such a short period (just over 60 days), and we are not going to slow down, but rather pick-up the pace now that we have rounded out our operational, management and project construction teams. To keep you informed of our developments on a regular basis Danny Brody, VP IR will be sending out a monthly update and our IR department always welcomes your calls. It is our belief that the foundation of this company is our shareholders and this is your company. As we the managing shareholders are hard at work we would like to call on all other shareholders from time to time to help grow OUR business. This is one of those times, it is imperative to our business plan that we brand the TGOD name, create awareness of our upcoming product offerings from a grass roots level (all of you) and increase the number of shareholders. So, if you think you
know someone that would like to learn about TGOD please take a moment and send a copy of our presentation to those interested parties. This is the best way to grow any business and remember this is your Company. In closing, we would like to announce the details of a proposed non-brokered equity financing to raise a minimum of $10,000,000. The Green Organic Dutchman Holdings Ltd. ( Company ) is pleased to announce that it is conducting a best efforts equity financing to raise aggregate gross proceeds of $10,000,000 (the Offering ) through the issuance of common share units (the "Units") at a price of $1.15 per Unit. Each Unit will consist of one common share of the Company (a "Common Share") and one common share purchase warrant of the Company (a "Warrant"). Each Warrant is exercisable into one Common Share (the "Warrant Share") at the exercise price of $2.15 per share for a period of 24 months from the closing date ( Closing Date ) of the Offering. It is intended that the Warrants will be transferable and will be subject to acceleration in the event that the volume weighted average price of the Common Shares is equal to or greater than $2.80 over a period of ten consecutive days. The Common Shares and Warrants will be subject to a six-month contractual escrow period from the date the Company s common shares (or derivative thereof) are listed on an exchange ( Listing Date ). The Warrant Shares will be subject to a twelve-month contractual escrow period from the Closing Date. "This is a unique retail shareholder driven financing, that allows as many potential patients to participate as an investor, in the upside of our Company," states Rob Anderson, CEO of TGOD. Please note that if you have an interest in the financing contact our IR department. To view a copy of the Company s full corporate presentation please visit: http://greenorganicdutchman.com/dl/tgod.pdf CONTACT INFORMATION : Investor Relations Email : info@tgod.ca Phone: 905-304-4201 www.tgod.ca ABOUT GREEN ORGANIC DUTCHMAN The Green Organic Dutchman Ltd. Produces Farm Grown, Pharma Grade Organic Cannabis. The Company grows high quality, organically grown medical cannabis in small batches using craft growing, all natural principles. The Green Organic Dutchman Ltd. is licensed under the access to
cannabis for medical purposes regulations (ACMPR) to cultivate medical marijuana, and carries out its principal activities producing marijuana from its facilities in Ancaster, Ont., pursuant to the provisions of the ACMPR and the Controlled Drugs and Substances Act (Canada) and its regulations. This update contains forward-looking information, which involves known and unknown risks, uncertainties and other factors that may cause actual events to differ materially from current expectation. Important factors -- including the availability of funds, the results of financing efforts and the parties' due diligence reviews, and general market conditions -- that could cause actual results to differ materially from the Company's expectations. Readers are cautioned not to place undue reliance on these forward-looking statements, which speak only as of the date of this press release. The company disclaims any intention or obligation, except to the extent required by law, to update or revise any forward-looking statem