Green Organic Increases IPO After Investor Demand Delays Debut
(Bloomberg) -- Medical marijuana grower Green Organic Dutchman Holdings Ltd. boosted the range on its initial public offering by as much as 15 percent, pushing back its trading debut while it refiled with regulators, a person familiar with the matter said.
The Mississauga, Ontario-based pot grower now plans to raise between C$102 million ($79 million) and C$115 million in the stock sale, according to a filing Wednesday. The company easily raised the C$100 million it had been seeking in the sale last month, the person said, asking not to be identified because the matter is private. Each share was priced at C$3.65, according to a regulatory filing.
In an unusual move, instead of pushing ahead with the IPO, Green Organic and its advisers decided to rip up its original prospectus before the book was closed to allow for more investors to participate and to raise more money, the person said.
The new prospectus took more than a month to complete and contains its latest financials that were released last week, the person said. A spokesman for the company couldn’t be reached for comment.
The IPO follows the June listing by pot producer MedReleaf Corp., which fell 22 percent on its first day of trading. That was the largest decline in 16 years for a Canadian IPO larger than C$100 million.
MedReleaf’s shares closed Wednesday at C$20.30 apiece, more than double its C$9.50 IPO price.
Green Organic’s IPO is led by Canaccord Genuity Corp. and PI Financial Corp.The company intends to use the proceeds from the offering to fund its ongoing operations, according to a a regulatory filing. It said that will include completing its facilities in Hamilton, Ontario, and Salaberry-de-Valleyfield, Quebec, as well as funding various licensing and approvals, it said.
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