TORONTO, Aug. 15, 2018 (GLOBE NEWSWIRE) — The Green Organic Dutchman Holdings Ltd. (the “Company” or “TGOD”) (TSX: TGOD) (US: TGODF) reported its financial and operational results for the second quarter of fiscal 2018, ended June 30th, 2018. These filings are available for review on the Company’s SEDAR profile at www.sedar.com.
Highlights
The Company:
- continued to make strong progress on the construction of its facilities in Ancaster, Ontario and Valleyfield, Quebec, spending a total of $20,734,000 on those initiatives
- received organic certification from ECOCERT Canada
- successfully completed the record breaking Initial Public Offering on the Toronto Stock Exchange, raising gross proceeds of $132,264,000
- expanded its shareholder base from 4,000 to over 20,000
- announced a strategic partnership agreement with Epican Medicinals Limited, a vertically integrated Jamaican cannabis company
- completed a letter of intent with Denmark’s Queen Genetics/Knud Jepsen A/S, which, if completed will increase TGOD’s total organic-funded capacity to 195,000 kgs
- announced several strategic licensing agreements with top US brands including Stillwater Brands, Evolabs, and CBx Sciences
- completed a $25,024,000 bought deal financing which closed on June 26th, 2018
The overall construction in Ancaster, Ontario and Valleyfield, Quebec remains on schedule with cultivation expected to commence in the first half of 2019. The Company maintained a strong balance sheet with cash and cash equivalents of $261,816,000 and continues to execute on management’s vision of becoming the largest organic cannabis brand in the world.
TGOD is moving forward at a rapid pace on its aggressive, de-risked business plan and continues to significantly expand all aspects of its business. Cash used in operating activities equated to $7,196,000 for the three months ended June 30, 2018. This spend included strategic initiatives in consumer market research, marketing and brand building in anticipation of the Company’s launch into the recreational market. TGOD has also committed to investing in research and development initiatives which are expected to bring new technologies to commercialization. The Company has prioritized hiring highly skilled and experienced staff while investing in infrastructure to rapidly scale its business.
As TGOD prepares for the launch of its high quality, consumer-preferred premium organic brand, the Company will continue to focus on R&D to develop innovative cannabis consumer products for both the medical and recreational markets. The Company’s patient database continues to experience significant month over month growth as TGOD’s brand of organically-certified cannabis continues to gain increased recognition. The back-office ecommerce network agreement with Shopify has been consummated, and TGOD continues to develop a robust ecommerce platform to support domestic and international expansion.
We are pleased with the accomplishments we have made in such a short period of time. We have invested heavily in building the foundation to drive our Company forward at an unparalleled pace.
Brian Athaide, TGOD’s CEO
Construction is on schedule across all jurisdictions and we continue to aggressively build our medical and adult-use brand. TGOD is investing heavily in consumer research, R&D and simultaneously building both the capability and systems needed to rapidly scale as we prepare for the adult-use market.
“The announcement of the partnership with Jamaica is just the beginning for our international expansion plans,” said Csaba Reider, the Company’s President. “TGOD’s business plan calls for operations in 12 countries on three continents by the end of 2018 with a focus on Europe and Latin America. We continue to make strategic additions across all divisions of the Company to execute on our expansion plans,” continued Reider.
On Behalf of the Board of Directors,
The Green Organic Dutchman Holdings Ltd.
ABOUT THE GREEN ORGANIC DUTCHMAN HOLDINGS LTD.
The Green Organic Dutchman Holdings Ltd. is a research & development company licensed under the Access to Cannabis for Medical Purposes Regulations (“ACMPR”) to cultivate medical cannabis. The Company carries out its principal activities producing cannabis from its facilities in Ancaster, Ont., pursuant to the provisions of the ACMPR and the Controlled Drugs and Substances Act (Canada) and its regulations.
The Company grows high quality, organic cannabis with sustainable, all-natural principles. TGOD’s products are laboratory tested to ensure patients have access to a standardized, safe and consistent product. TGOD has a funded capacity of 170,000 kg and is building 1,382,000 sq. ft. of cultivation facilities in Ontario, Quebec and Jamaica.
The Company has developed a strategic partnership with Aurora Cannabis Inc. (TSX:ACB) whereby Aurora has invested approximately C$78.1 million for an approximate 17.5% stake in TGOD. In addition, the Company has raised approximately C$350 million and has over 20,000 shareholders.
TGOD’s Common Shares and warrants issued under the indenture dated November 1, 2017 trade on the TSX under the symbol “TGOD” and “TGOD.WT”, respectively.
