Shares of The Green Organic Dutchman plunge after raising financing concerns
The Green Organic Dutchman Holdings Ltd. saw its shares plunge this week after the cannabis company said it was reviewing financing alternatives in order to complete construction at its facilities in Ancaster, Ont., and Valleyfield, Que.
The company says due to changing market conditions, financing sources have been unavailable on acceptable terms within the timeframes required.
Stocks in the cannabis sector have been under pressure in recent months due to various factors, including a slower-than-expected retail rollout and growing concern over a wave of vaping-related illnesses.
The Green Organic Dutchman says it has started a review of alternatives.
It says it may revise the construction schedule for its Ancaster and Valleyfield projects if it is unable to obtain sufficient financing on reasonable terms, within the required timeframe.
The company’s shares were down 28 cents or about 16 per cent at $1.53 in morning trading on the Toronto Stock Exchange on the announcement. Friday morning, it was at $1.17.
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