- First
provincial supply agreement signed with Ontario
- Planned
production of 17,500 kg annually at 166,000 sq. ft. Ontario facility
- Planned
production of 185,000 kg annually on 1.31 million square feet in Quebec
The agreement signed by The Green Organic Dutchman Holdings
Ltd. (TSX: TGOD) (OTCQX: TGODF) to supply cannabis to the Ontario Cannabis
Retail Corporation marks another milestone on the company’s journey toward
becoming the world’s leading organic cannabis brand (http://ibn.fm/kvhFr). Now,
TGOD’s high quality certified organic cannabis, which is grown in living soil,
will be made available to the eight million adults over 19 who live in Ontario,
Canada’s largest province by population. This is the first of many provincial
supply agreements in the cards as the company expands its domestic and
international footprints. Distribution to the Ontario market “is a critical
component to TGOD’s national recreational rollout,” according to Brian
Athaide, director and CEO. It complements other initiatives that the
company is undertaking in Denmark, Jamaica, Mexico and Poland.
The Ontario Cannabis Retail Corporation (“OCRC”), operating
as the Ontario Cannabis Store (“OCS”), is a Canadian Crown corporation,
established to be a monopoly, which operates the only legal online store for
recreational cannabis in Ontario. As soon as a legislative framework is in
place, expected by April 2019, it will also become the provincial wholesaler of
cannabis for private retail stores. OCS commenced retail sales with the opening
of the Canadian recreational cannabis market on October 17. Its wholesale
division will soon follow, as a list of the first 25 retailers eligible to
apply for cannabis licenses was published in January 2019. The recreational
market has already shown exceptional vibrancy. The Ontario Cannabis Store
received more than 100,000 orders and over 1.3 million unique visitors to its
website in the first 24 hours of operations.
The OCS supply contract involved Velvet Management Inc.
(“Velvet”), which provides fully integrated sales and distribution services for
TGOD’s cannabis products to provincial liquor and cannabis boards
across Canada. Velvet was set up by Philippe Dandurand Wines, the largest
importer and distributor of wine in Canada, to “focus on the sales and
marketing of cannabis brands. TGOD is the first cannabis partner and will be
exclusive in the certified organic segment.”
TGOD is the largest licensed producer of 100 percent
certified organic cannabis in Canada. The company’s cannabis is certified
by ECOCERT, one of the pre-eminent organic certification bodies in the world.
Organic cannabis is grown in living soil without the use of synthetic
fertilizers, pesticides or herbicides. The result is a cleaner, premium product
for Canadian consumers across both medical and recreational uses.
TGOD continues to pursue its mission of becoming the leading
global organic cannabis brand. Since its inception, the company has raised more
than $450 million to fund domestic and international expansion and acquisitions,
including a 49.18 percent interest in Epican, a vertically integrated cannabis
company with licenses for cultivation, extraction, manufacturing and retail
sales in Jamaica. Ultimately, it plans to raise annual output capacity to
219,000 kilograms (roughly 483,000 lbs.). The company has a presence in
Canada’s two largest provinces, by population – Ontario and Quebec – which
together offer a cannabis market estimated at $1.12 billion to $2.68 billion.
TGOD’s facilities in Hamilton, Ontario, are planned to have
a total build-out capacity of 166,000 square feet, allowing TGOD to produce
17,500 kg of organic cannabis annually. Construction activity, already
underway, started with an indoor facility of 7,000 sq. ft. with an output
capacity of 1,000 kg, which is being used as a beta test for a phase I
expansion. Phase I will be an enclosed facility that adds 2,000 kg of capacity
by the end of Q2 2019. It will be followed by construction of a hybrid facility
of 139,000 sq. ft. with a capacity of 14,500 kg.
Construction at TGOD’s 75-acre Salaberry-de-Valleyfield
property in Quebec, which commenced January 2018, continues. Valleyfield is a
1.31 million sq. ft. high technology hybrid facility capable of producing
185,000 kg of high-quality organic cannabis annually. First cultivation is
expected by Q4 2019.
For more information, visit the company’s website at www.TGOD.ca
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