Canadian Cannabis grower The Green Organic Dutchman launched its stock debut Wednesday – delivering a strong inaugural trading performance by finishing up more than 8% from its opening price.
Trading under the ticker TGOD on the TSX Venture Exchange, the stock opened at $3.60 a share in Canadian dollars – five cents below the initial public offering’s target price of CA$3.65.
Trading volume was brisk throughout the day, with the stock peaking just after midday at CA$4.25 a share. The stock closed at CA$3.89.
Among the day’s highlights: Aurora Cannabis (TSX: ACB) purchased 17.5% of the IPO, or about 6.3 million shares at CA$3.65 a unit for a total investment of CA$23.1 million ($17.9 million).
Aurora’s investment follows a strategic partnership it launched with Ontario-based Green Organic Dutchman earlier in the year that included a CA$55 million investment by the Edmonton-based cannabis producer.
Aurora has an option to increase its ownership interest to more than 50%, should the company reach certain operation and financial milestones.
One of the largest cannabis IPOs, Green Organic Dutchman’s debut follows MedReleaf’s June listing (TSX: LEAF), which plummeted 22% on its initial day of trading.
MedReleaf’s shares have shot up since then, closing at CA$21.78 on Wednesday – more than double the IPO price of CA$9.50 a unit.
TGOD’s completed public offering included 31.5 million shares priced at CA$3.65, yielding gross proceeds of $115 million, the company said.
Prior to its IPO, Green Organic Dutchman raised roughly CA$160 million.
The company operates a cannabis product facility that spans more than 100 acres in Hamilton and is completing facilities in Ancaster and Valleyfield, Quebec.
In January, the company entered into a supply contract giving Aurora the right to purchase 20% of its annual production of organic cannabis.
