- 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://nnw.fm/mN7uM), 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://nnw.fm/UxR9H).
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://nnw.fm/HD9qu).
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://nnw.fm/g8tWl). 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
More from NetworkNewsWire
About NetworkNewsWire
NetworkNewsWire (NNW) is a financial news and content distribution company that provides (1) access to a network of wire services via NetworkWire to reach all target markets, industries and demographics in the most effective manner possible, (2) article and editorial syndication to 5,000+ news outlets (3), enhanced press release services to ensure maximum impact, (4) social media distribution via the Investor Brand Network (IBN) to nearly 2 million followers, (5) a full array of corporate communications solutions, and (6) a total news coverage solution with NNW Prime. As a multifaceted organization with an extensive team of contributing journalists and writers, NNW is uniquely positioned to best serve private and public companies that desire to reach a wide audience of investors, consumers, journalists and the general public. By cutting through the overload of information in today’s market, NNW brings its clients unparalleled visibility, recognition and brand awareness. NNW is where news, content and information converge.
To receive instant SMS alerts, text STOCKS to 77948
For more information, please visit https://www.NetworkNewsWire.com
Please see full terms of use and disclaimers on the NetworkNewsWire website applicable to all content provided by NNW, wherever published or re-published: http://NNW.fm/Disclaimer
NetworkNewsWire (NNW)
New York, New York
www.NetworkNewsWire.com
212.418.1217 Office
Editor@NetworkNewsWire.com
New York, New York
www.NetworkNewsWire.com
212.418.1217 Office
Editor@NetworkNewsWire.com
No comments:
Post a Comment