The Green Organic Dutchman Reports Q3 Results

The Green Organic Dutchman Reports Q3 Results

The Green Organic Dutchman Holdings Ltd. (TSX: TGOD) (US:TGODF) reported its financial and operational results for its third quarter of fiscal 2018, ended September 30th, 2018. These filings are available for review on the Company’s SEDAR profile at www.sedar.com

The Green Organic Dutchman Hold (CNW Group/The Green Organic Dutchman Holdings Ltd.)

The Company:

  • Continues to make considerable progress on the construction of its facilities in Hamilton, Ontario and Valleyfield, Quebec, having deployed a total of $33 million in capital expenditures in the third quarter of 2018. TGOD is on schedule to launch commercial production in both facilities during the first half of 2019.
  • Is optimizing commercial farming in its current facility in Hamilton, developing five new strains for placement into the medical and recreational markets to ensure it’s able to provide patients and consumers with consistent, reliable, premium product. The most recent commercial harvest harvested will be allocated to TGOD’s pick”Grower’s Circle” in January 2019. The Growers Circle will offer investors and investors who rely on medical cannabis access to the business’s first crop. It made to support those who encouraged people who are in need of medical cannabis therapy and TGOD and is limited to 200 patients.
  • Is convinced in a successful resolution of the appeal filed with the LPAT (“Local Planning Appeals Tribunal”) in Hamilton regarding a zoning amendment needed to make cannabis in its new 123,000sq ft hybrid facility. TGOD has approval from the Agricultural and Rural Affairs Committee, the Planning Committee, the Ontario Federation of Agriculture along with the support of the majority of local residents of the City recently polled. Management is confident in a successful settlement in Q1 2019. TGOD’s existing two facilities on the Hamilton site (total 27,000sq ft), are already zoned to generate medical cannabis.
  • Invested in Jamaica, through Epican Medicinals, with current retail sales in its Kingston shop and planned expansion into four additional retail shops and expanded production capacity to 14,000 kgs.
  • Expanded its international footprint with the HemPoland acquisition that closed October 1. HemPoland has established manufacturing and sales of other hemp products and CBD oil across Europe, providing immediate earnings for TGOD.
  • Expects to have 170,000 kgs of annual cannabis capacity across Canada and Jamaica when construction is finished, in addition to scalable hemp capacity in Poland. Using the power rates in Canada, state of the art facilities and superior pricing for organics, TGOD expects to have industry leading margins once achieving scale in late 2019.
  • Has developed both THC and CBD beverage formulations with customer pleasing taste profiles. TGOD expects to be ready before legalization happens in flavours and formulations for beverages with numerous beverage products.
  • Entered into a joint venture with one of largest pharmaceutical distributors in Mexico, prepared to position TGOD products across 7,600 possible points of sale and benefit from the new regulatory rulings in Mexico in support of health and recreational cannabis use.
  • Continues to negotiate supply and distribution agreements across Canada to meet the powerful provincial requirement for our organic product. TGOD is currently establishing sales capabilities for recreational and medical markets.
  • Expanding its operations, marketing and administration infrastructure to rapidly scale its business as noted above, leading to a loss for the three and nine months ended September 30, 2018 of $11.3 million and $27.1 million respectively, which is based on budgeted expectations. With the accelerated exercise of 16.45 million warrants at an average of $2.91 per merit, and the completion of the $76.2 million bought deal offering post quarter end (includes 1.6 million underwriter warrants which were exercised), the Company now has cash of over $300 million on hand to execute its plans.

Please see our latest construction videos under:

Hamilton construction progress video 
Valleyfield construction progress video

“TGOD is on track to become the largest organic cannabis brand in the world as we continue to aggressively expand our international footprint, including Jamaica, Europe and Latin America, establishing leadership in organic cannabis.” said Brian Athaide, CEO of TGOD. “We are excited with the quality and yield of our first commercial crop and are seeing our substantial investments in research and development leading to high quality product with industry leading margins.  We are on schedule to scale our new facilities up to bring annual capacity of organic kgs online.  With international sales in Q4 2018, expected supply and distribution arrangements, domestic earnings commencing in Q1 2019, and additional global M&A opportunities, we anticipate several significant catalysts for our Company in the near term”, continued Athaide.

“TGOD has secured its financial future by raising over $450 million, fully funding our current domestic and international plans, and we have no plans to return to the market for additional funding at this time.” Said Chief Financial Officer, Sean Bovingdon. “We’ve de-risked the capital side of our organization and with our focus today on delivering recreational and medical sales in Canada and internationally. We expect to drive considerable value for shareholders in 2019 and beyond.”

The Green Organic Dutchman Holdings Ltd. is a premium international organic cannabis firm, with operations concentrated on medical cannabis markets in Canada, Europe, the Caribbean and Latin America as well as the Canadian adult-use sector. The Company develops principles that are all-natural, high quality, organic cannabis with sustainable. TGOD’s products are lab tested to ensure patients have access to a product that is safe, standardized and consistent. TGOD has a financed capacity of 170,000 kgs and is constructing 1,382,000 sq. ft. of cultivation facilities across Ontario, Quebec and Jamaica.

The Company, through its wholly-owned operating subsidiary The Green Organic Dutchman Ltd., holds a permit (the”License”) issued by Health Canada pursuant to the Access to Cannabis for Medical Purposes Regulations (the”ACMPR”) which allows the Company to create and conduct research at its 100 acre property near Hamilton, Ontario (the”Hamilton Facility”) dried marijuana, marijuana plants and fresh marijuana, and to sell these cannabis products within Canada to licensed manufacturers or certified dealers qualified under Section 22(2) of the ACMPR. The License was amended on April 20, 2018 to include the production and sale of cannabis oil and on October 12, 2018 to add sales to medical clients.

Forward-Looking Information Cautionary Statement

This news release includes statements containing certain “forward-looking information” within the meaning of applicable securities law (“forward-looking statements”). Forward looking statements in this release includes, but is not limited to, statements regarding the future legalization of recreational cannabis internationally, statements about the results of zoning appeals in Hamilton, statements regarding future research, development and innovation by the Company, statements regarding production capacity, statements regarding costs and margins, statements about the offering, pricing and sales of any specific products by the Company in any jurisdiction, statements about raising capital, and statements regarding the future performance and shareholder value of the Company. Forward-looking statements are frequently characterized by words such as”plan”,”continue”,”anticipate”,”project”,”intend”,”believe”,”anticipate”,”estimate”,”may”,”will”,”possible”,”proposed” and other similar words, or statements that certain events or conditions”may” or”will” occur. These statements are only predictions. Various assumptions were used in drawing the conclusions or making the projections contained in the forward-looking statements. Forward-looking statements are based on the opinions and estimates of management at the date the statements are made, and are subject to many different risks and uncertainties and other factors that could cause actual events or results to differ materially from those projected in the forward-looking statements. The Company is under no obligation, and expressly disclaims any intention or obligation, to update or revise any forward-looking statements, whether as a result of new information, future events or otherwise, except as required by law.

SOURCE The Green Organic Dutchman Holdings Ltd..

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Released at Tue, 13 Nov 2018 13:06:14 +0000

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