- Recently
released Q3 2018 results provide evidence of production capacity
enhancement and strengthening of the company’s international position
- To
support its growth, The Green Organic Dutchman has also hired a number of
reputable senior executives to fill key positions in the management team
- Milestones
achieved throughout 2018 have granted the company a positive review from
one of the world’s leading global investment banking entities
- Recent
passage of the U.S. government’s farm bill legalizes hemp production
Recent company announcements reveal the numerous important
milestones that The Green Organic Dutchman Holdings Ltd. (TSX: TGOD) (OTCQX:
TGODF), a cannabis-focused research and development company, has managed to
fulfill in 2018.
- Through
the year, the company continued constructing its Hamilton, Ontario, and
Valleyfield, Quebec, facilities. In the third quarter of 2018 alone, TGOD
deployed $33 million in capital expenditure for this purpose. The company
has also focused on optimizing commercial cultivation at its operational
facility in Hamilton. The development of five new strains for placement on
both the medical and the recreational markets will soon enable The Green
Organic Dutchman to provide customers with consistently reliable services.
- In
addition, The Green Organic Dutchman is focusing on the expansion of its
international footprint. On October 1, 2018, TGOD finalized the HemPoland
acquisition, gaining access to established production and sales of CBD oil
and industrial hemp products across Europe (http://ibn.fm/C47Xo).
- Also
in October, TGOD announced a strategic joint venture with LLACA Grupo
Empresarial to create a 50/50-owned company to enter the medicinal
cannabis market in Mexico (http://ibn.fm/13Q0R). The agreement will give The
Green Organic Dutchman access to a network of 4,500 pharmacies and 3,100
supermarkets throughout Mexico.
- The
company invested in Jamaica, as well, through Epican Medicinals (http://ibn.fm/ZNz1H). Sales
are currently being run via its store in Kingston, and further expansion
via four additional retail stores is anticipated. The Jamaican expansion
is expected to increase production capacity by 14,000 kilograms.
With these improvements, The Green Organic Dutchman is
anticipating its annual capacity across Canada and Jamaica to reach 170,000
kilograms. The scalable hemp capacity in Poland will add to the company’s
international strategic advantage.
These expansion efforts have created a need for the strengthening
of The Green Organic Dutchman team. In October 2018, Sean Bovingdon joined TGOD
as the company’s new CFO. Bovigndon has over 30 years of experience in the
financial management of both public and private companies (http://ibn.fm/rEL3r).
In November 2018, the company announced new additions to its
senior management team in an attempt to fortify marketing and compliance
efforts. Emily Demeo was appointed as the company’s marketing brand director
and Terry Reid was chosen for the legal and compliance director position. Both
experts have significant experience and an excellent reputation in their
respective fields.
Because of these strategic milestones, TGOD earned a ‘Buy’
rating from Canaccord Genuity – a top investment bank whose analysts believe
that the company deserves a speculative buy rating and a price target of C$7.00
($5.40), almost double the present value (http://ibn.fm/GoVqv).
The Cannacord Genuity analysis points out that The Green
Organic Dutchman differentiates itself from the competition on the basis of its
organic production.
A recent survey suggests that 43 percent of Canadian
recreational cannabis users prefer organic products over standard options.
Based on this information, The Green Organic Dutchman’s production capacity is
expected to translate to annual revenue in the range of $1.1 to $1.4 billion.
In addition, the recently announced U.S. passage of a
comprehensive farm bill provides for the legalization of hemp production in the
U.S., opening the door to even greater growth for the hemp industry in general.
With presidential approval and imports being eventually allowed, TGOD could be
able to export product from HemPoland into the U.S.
The Green Organic Dutchman is a premium organic cannabis
company with operations focusing on the legal medicinal and recreational
cannabis markets in Canada, Europe and Latin America. The company follows
sustainable, all-natural principles in its cannabis production. All TGOD
products are laboratory tested to ensure quality, standardization and safety.
For more information, visit the company’s website at www.TGOD.ca
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