The Green Organic Dutchman Holdings Ltd. is pleased to report its financial and operational results for the year ended December 31, 2018. These filings are available for review on the Company’s SEDAR profile at www.sedar.com
- Ended the year with a strong balance sheet and liquidity, including $263.5 million of cash and restricted cash, to continue to fund its facilities expansion and international growth.
- Completed the acquisition of HemPoland on October 1st, 2018 for total cash and deferred consideration of approximately $18.6 million.
- Announced its first quarterly revenues through HemPoland resulting in $1.9 million of revenue for the fourth quarter.
- Accelerated construction spending at Hamilton and Valleyfield sites to $39.5 million in the fourth quarter, an increase of 19%, or $6.4 million compared to $33.1 million in the third quarter 2018.
- Completed a $76.2 million bought deal financing priced at $6.85 per unit.
- Experienced a loss from operations of $18.1 million ($44.5 million for the full 2018 fiscal year) as a result of ramping up operations, numerous consumer research activities, and administration in preparation for commercial production in 2019.
The Company excelled in the following areas:
- Completed the largest Canadian cannabis IPO, which closed on May 2nd, 2018, raising gross proceeds of $132.3 million, including overallotment.
- Completed two bought deals worth $101.2 million in gross proceeds.
- Completed private placements worth $77.6 million in gross proceeds.
- Received reiterated support from the investor community with $63.4 million in warrants exercised.
- Accelerated construction spending at Hamilton and Valleyfield sites to $96.8 million throughout the year.
- Increased total planned global production capacity to 219,000 kgs with improved design and engineering updates at its Canadian facilities.
International presence and key partnerships:
- Opened the first dispensary, with its partner Epican Medicinals, in Kingston, Jamaica.
- Formed joint venture with Knud Jepsen in Denmark to focus on production of cannabis and cannabis oils and develop and patent innovative cannabis genetics.
- Created joint venture with LLACA Groupo Empresarial for distribution of medical cannabis into approximately 7,600 pharmacies and stores in Mexico.
- Concluded a collaboration agreement with Velvet Management, a new company created by the largest wine distributor in Canada, Philippe Dandurand Wines focused on cannabis sales and distribution.
- Secured exclusive licensing rights to Stillwater Foods’ RIPPLE SC patent pending soluble cannabinoid ingredient technology and Evolab and CBx Sciences brands and proprietary cannabinoid vaporization technologies for the Canadian market.
- Incorporated multiple subsidiaries around the world including in the Netherlands, Greece, Colombia and Germanyto execute the Company’s global vision.
Other key updates
- Appointed Mr. Prem Virmani as the Company’s Beverage Science and Research Division Chairman. Invested over $2.8 million into Research and Development related expenses in 2018.
- Appointed Brian Athaide as the Company’s CEO, and expanded executive team, bringing over 200 years of combined experience and leadership from the consumer product goods and pharmaceutical industries into the Company.
- Announced a spin-off transaction on July 19th, 2018 to provide TGOD shareholders with an opportunity to participate in the seed round financing of a newly formed company to focus on global opportunities and assets not core to the Company’s business.
“2018 has been a pivotal year for the Company. The accomplishments our team has made have been nothing shy of incredible,” said Brian Athaide, Director and CEO of the Company. “The Company has raised substantial capital and grown the team with the addition of deep expertise and exceptionally skilled professionals to both management and our Board,” continued Athaide. “We are very excited for 2019 and we remain focused on delivering on the Company’s operational plans of producing and bringing to market high quality, premium certified organic cannabis.”