- Monetization of current assets
- Looking to the United States and other opportunities
- Achieve higher power and yield when harvesting
TORONTO, April 29, 2021 / PRNewswire / – The Green Organic Dutchman Holdings Ltd. (the “Company” or “TGOD”) (TSX: TGOD) (United States: TGODF), a leading producer of premium certified organic cannabis, is pleased to provide a company update on its operations and advancing its strategic business plan.
Earlier this year, TGOD kicked off the process of monetizing underutilized assets, particularly at its growing and processing plant in Valleyfield, Quebec (the “Valleyfield Center”). In doing so, the Company hopes to increase its financial flexibility in order to reduce its debt and capitalize on future opportunities. To date, TGOD has achieved $ 2.64 million the sale of various surplus assets and recently closed the first round of tenders on its Valleyfield facility, after receiving several viable bids. Management and its advisers are working on the details of the offers and plan to move towards signing a definitive buy and sell agreement and close by the end of June.
“We are satisfied with the level of bids for the complete Valleyfield plant, which, at closing, would allow us to potentially repay all debt and provide additional working capital for the expansion,” commented Sean Bovingdon, CEO of TGOD and interim CFO. “In addition, most of the offers include the ability for TGOD to lease the small portion of the Valleyfield facility that we are currently using, so that there will be minimal disruption to our current operations at the facility. Valleyfield and no obligation for the company to spend capital on any move, ”added Bovingdon.
On the way to entering the United States
With continued regulatory advancements in United States (“US”) towards the decriminalization and legalization of cannabis in one form or another in various states, and the SAFE Banking Act passing through the United States House of Representatives, the company is stepping up its exploration of strategic options with a view to possible entry into the United States. Specific actions underway include discussions with investment advisers on potential acquisition and partnership opportunities, the potential expansion of the board to seven directors for the next annual and special meeting of shareholders of the Company to add a additional candidate with experience of the US market, and potential application for listing on the Canadian Stock Exchange, which would allow investment capacity in the United States.
Other strategic initiatives
The company continues to review other strategic initiatives to maximize shareholder value. This includes the sale or potential spin-off of an initial public offering of HemPoland, its wholly owned subsidiary, for which TGOD has retained Canaccord Genuity as an advisor, and the potential for mergers and acquisitions in the Canadian LP cannabis sector. The Company also continues to seek other international opportunities with a specific focus on Germany, Mexico and Australia. TGOD is one of the very few LPs to have access to the Mexican market, with 4 SKUs already well underway in the COFEPRIS review process. In Australia, TGOD continues to make progress with its in-country medical cannabis partner, LeafCann, and plans to move towards product export in the coming months.
TGOD remains strongly focused on operational execution and recently launched Organic Sugar Bush, a high THC sativa variety, reflecting the improvements in quality and potency that TGOD has recently achieved. In fact, all of the major premium organic strains of TGOD (Organic LA Confidential, Organic Rockstar Tuna, Organic Fire, as well as Organic Sugar Bush) are regularly harvested now with potencies above 20% THC. Additionally, operating costs continue to decrease per gram as operational efficiency is achieved and yields per plant increase due to the impact of crop improvements over the past six months. The company continues to work on expanding distribution in all Canadian provinces for these strains, as well as its highly Dutch consumer portfolio which includes its organic Afghan black hash in 30% THC and 40% THC formats. TGOD will also launch its Marrakech Gold Blonde Hash in June and an Aged Hash in the near future to expand this portfolio.
“We are excited about the advancements in the quality, consistency and potency of our flower portfolio and remain optimistic about the company’s financial outlook as we expand distribution and add new benchmarks to increase our sales in the months to come, ”noted Bovingdon.
About The Green Organic Dutchman Holdings Ltd.
The Green Organic Dutchman Holdings Ltd. (TSX: TGOD) (US – OTC: TGODF) is a premium certified organically grown cannabis company focused on the health and wellness market. Her organic cannabis is grown in living soil, as nature intended. The company is committed to cultivating a better future by manufacturing its products responsibly, with less waste and an impact on the environment. Its two Canadian facilities were built to LEED certification standards and its products are sold in recyclable packaging. In Canada, TGOD sells dried flowers and oil, and recently launched a series of next-generation cannabis products such as hash, vapes, organic teas and soluble powders. Through its European subsidiary, HemPoland, the company also distributes premium CBD hemp oil and CBD infused topicals in Europe. By leveraging science and technology, TGOD harnesses the power of nature from seed to sale.
The ordinary shares and warrants of TGOD issued by virtue of deeds dated November 1, 2017, December 19, 2019, June 12, 2020, 23 october 2020 and December 10, 2020 trade on the TSX under the symbol “TGOD”, “TGOD.WT”, “TGOD.WS”, “TGOD.WR”, “TGOD.WA” and “TGOD.WB” respectively, and TGODF is traded in the United States on the OTCQX. For more information on The Green Organic Dutchman Holdings Ltd., please visit www.tgod.ca.
Cautionary Statement Regarding Forward-Looking Information
This press release contains statements containing certain “forward-looking information” within the meaning of applicable securities laws (“forward-looking statements”). Forward-looking statements contained in this press release include, but are not limited to, statements regarding the sale of the Valleyfield and HemPoland plant, the company’s expansion into the United States, the potential for mergers and acquisitions, increasing the size of its board of directors, changes in its product lines, product distribution and operational matters, including power and yield, reduction of term debt, offering of particular products by the company in any jurisdiction; and the performance and future plans of the company. Forward-looking statements are often characterized by words such as “plan”, “continue”, “expect”, “plan”, “intend”, “should”, “believe”, “anticipate”, “estimate”. “,” May “,” will “,” potential “,” proposed “and other similar words, or statements that certain events or conditions” may “or” will occur “. These statements are only predictions. Various assumptions have been used in drawing the conclusions or making the projections contained in the forward-looking statements throughout this press release. Forward-looking statements are based on the opinions and estimates of management as of the date the statements are made and are subject to a variety of risks and uncertainties (including market conditions) and other factors that could cause actual events or results to differ materially from them. projected in forward-looking statements, including the risk factors described in the Company’s most recent Annual Information Form filed with the Canadian Securities Administrators and available on the Company’s Issuer Profile on SEDAR at www.sedar.com. Although the Company believes that the assumptions and factors used in preparing forward-looking information or forward-looking statements in this press release are reasonable, such information should not be relied on unduly and no assurance can be given that such events. The disclosed timeframes will occur or not at all. The forward-looking information and forward-looking statements included in this press release are made as of the date of this press release. The Company has no obligation, and expressly disclaims any intention or obligation, to update or revise any forward-looking statement, whether as a result of new information, future events or otherwise, except as expressly required. by applicable law.
Neither the TSX nor its Regulation Services Provider (as that term is defined in the policies of the Toronto Stock Exchange) accepts responsibility for the adequacy or accuracy of this release.
SOURCE The Green Organic Dutchman Holdings Ltd.