The Green Organic Dutchman Holdings Ltd. reported its financial and operational results for the 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
- Continues to make significant 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 cultivation at its existing facility in Hamilton, developing five new strains for placement into the medical and recreational markets to ensure it’s in position to provide patients and consumers with consistent, reliable, premium product. The most recent commercial crop harvested will be allocated to TGOD’s select “Grower’s Circle” in January 2019. The Growers Circle will provide early investors and patients who rely on medical cannabis access to the Company’s first commercial crop. It is limited to 200 patients and designed to support those who supported TGOD and those who are most in need of medical cannabis therapy.
- Is confident in a successful resolution of the appeal filed with the LPAT (“Local Planning Appeals Tribunal”) in Hamilton regarding a zoning amendment required to produce cannabis in its new 123,000sq ft hybrid facility. TGOD has approval from the City’s Agricultural and Rural Affairs Committee, the Planning Committee, the Ontario Federation of Agriculture and the support of the majority of local residents recently polled. Management is confident in a successful resolution in Q1 2019. TGOD’s existing two facilities on the Hamilton site (total 27,000sq ft), are already zoned to produce medical cannabis.
- Invested in Jamaica, through Epican Medicinals, with current retail sales in its Kingston store and planned expansion into four additional retail stores and expanded production capacity to 14,000 kgs.
- Expanded its international footprint with the HemPoland acquisition that closed October 1. HemPoland has established production and sales of CBD oil and other industrial hemp products across Europe, providing immediate revenue for TGOD.
- Expects to have 170,000 kgs of annual cannabis capacity across Canada and Jamaica when construction is completed, as well as scalable hemp capacity in Poland. Utilizing state of the art facilities, the lowest power rates inCanada and premium 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 consumer pleasing taste profiles. TGOD expects to be ready before legalization occurs for beverages with a number of beverage products in varying flavours and formulations.
- Entered into a joint venture with one of largest pharmaceutical distributors in Mexico, ready to position TGOD products across 7,600 potential points of sale and take advantage of the new regulatory rulings in Mexico in support of medical and recreational cannabis use.
- Continues to negotiate supply and distribution agreements across Canada to meet the strong provincial demand for our organic product. TGOD is establishing national sales capabilities for medical and recreational markets in 2019.
- Expanding its operations, administration and marketing infrastructure to rapidly scale its business as noted above, resulting in a loss for the three and nine months ended September 30, 2018 of $11.3 million and $27.1 millionrespectively, which is in line with budgeted expectations. With the accelerated exercise of 16.45 million warrants at an average of $2.91 per warrant, and the completion of the $76.2 million bought deal offering post quarter end (includes 1.6 million underwriter warrants that were exercised), the Company currently has cash of over $300 millionon hand to execute its plans.
“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 capital at this time.” said Sean Bovingdon, Chief Financial Officer. “We have de-risked the capital side of our business and with our focus now on delivering medical and recreational sales in Canada and internationally. We expect to drive significant value for shareholders in 2019 and beyond.”