- Despite
stock market nervousness over cannabis’ undersupply since Canada legalized
recreational use, market watchers expect rebound
- The
Green Organic Dutchman is building a relatively rare organic growing
operation that’s expected to have low operating costs, premium pricing and
green-friendly credentials
- The
company’s first crop will be delivered next month to select patients as
management continues building toward industry-leading capacity
- The
Green Organic Dutchman expects 2019 to be a banner year as it works toward
output of at least 170,000 kilograms per year
- TGOD
recently launched a brand new patient and consumer-focused website, which
can be viewed at www.TGOD.ca
Canada’s legalization of cannabis for a full spectrum of
adult uses created a bit of a land rush as investors moved to secure fertile
ground for profits in the emerging market, but undersupply of cannabis product
created a sense of caution, which was reflected in declining stock values as
consumers also rushed to greet the plant’s legalization in numbers greater than
the cultivators and their pipelines could sustain. Even so, industry watchers
generally agree that the problem is temporary and should correct itself as
growers such as The Green Organic Dutchman Holdings Ltd. (TSX: TGOD) (OTCQX:
TGODF) get their operations up to capacity.
In an interview, Danny Brody, TGOD’s vice president of
investor relations, stated, “This is exactly why we have waited to launch our
product. We want the kinks to be worked out and have operational readiness
across all divisions of our company. We want patients to not only enjoy our
organic cannabis but also enjoy the experience of ordering that product from
start to finish – the best customer service in the industry.”
Cannabis news outlet The Motley Fool noted that Canada’s top
seven marijuana growers, which include The Green Organic Dutchman, lost nearly
$300 million collectively during the most recently reported quarter as they
worked to get their initial operations up to full capacity and distinguish
their brands in a heavily competitive marketplace (http://ibn.fm/IrmE3), but the report states that the
industry is “growing like a weed,” adding that “according to various Wall
Street estimates, the legal industry in Canada could see around $5 billion in
added annual sales from adult-use pot within a matter of years.”
The Green Organic Dutchman landed among the list of top
growers, because it expects to approach 200,000 kilograms in annual yield
during 2020, when at full capacity. A news release issued earlier this month in
response to the annual general meeting of the company’s shareholders noted that
its funded capacity is currently 170,000 kilograms, and it is building almost
1.4 million square feet of cultivation facilities across Ontario, Quebec and
Jamaica (http://ibn.fm/5wabY).
The necessary majority of shareholders approved all of the
matters put forward by the company at the meeting, including the director
nominees, showing the confidence that shareholders continue to place in the
company’s focus.
“We are thrilled with the overwhelming support from
shareholders at our AGM,” Board Chairman Jeff Scott stated in the news release.
“2019 will be a pivotal year as TGOD’s flagship domestic facilities begin
production ramp-up and sales commence in the coming weeks… I have the utmost
confidence in our team as we solidify our organic leadership position and
deliver on our goal of becoming the largest organic cannabis brand in the
world.”
TGOD made a strategic decision to dedicate its first
commercial crop to a closed group of patients and investors next month as a
show of loyalty to the company’s boosters and the patients who “are most in
need of medical cannabis therapy,” according to its quarterly report (http://ibn.fm/JUDh7).
TGOD is among a mere handful of Canadian cultivators
dedicated to organic growing principles. While the capital expenditure is about
20 percent greater for an organic cannabis facility, the operating costs are
lower to compensate (http://ibn.fm/A9W7V).
When the company’s additional purpose-built greenhouses are completed, they
will be among the largest LEED (Leadership in Energy and Environmental Design)
green building system-certified facilities in the world. They will also be
completed to European Union good manufacturing practice standards to facilitate
expansion into that market.
For more information, visit the company’s website at www.TGOD.ca
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