In the course of the corrective wave in the cannabis space – and certainly in the broader markets – we would see the dive in Green Organic Dutchman Holdings Ltd (OTCMKTS:TGODF) as potentially one of the more interesting opportunities around. The stock was really crushed by news that Aurora, its biggest strategic investor, announced that it had flipped much of its position in the market. However, as we saw with TGOD’s quarterly report, this is still a company that appears to be headed toward a big leadership role in terms of capacity as a key producer in the patch.
According to the release, the company 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.
Green Organic Dutchman Holdings Ltd (OTCMKTS:TGODF) is a research & development company licensed under the Access to Cannabis for Medical Purposes Regulations (“ACMPR”) to cultivate medical cannabis.
The Company carries out its principal activities producing cannabis from its facilities in Ancaster, Ont., pursuant to the provisions of the ACMPR and the Controlled Drugs and Substances Act (Canada) and its regulations.
The Company grows high quality, organic cannabis with sustainable, all-natural principles. TGOD’s products are laboratory tested to ensure patients have access to a standardized, safe and consistent product. TGOD has a funded capacity of 116,000 kg and is building 970,000 sq. ft. of cultivation facilities in Ontario and Quebec.
The Company has developed a strategic partnership with Aurora Cannabis Inc. (TSX:ACB) whereby Aurora has invested approximately C$78.1 million for an approximate 17.5% stake in TGOD. In addition, the Company has raised approximately C$290 million dollars and has over 5,000 shareholders. TGOD’s Common Shares and warrants issued under the indenture dated November 1, 2017 trade on the TSX under the symbol “TGOD” and “TGOD.WT”, respectively.
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As noted above, TGODF just announced its quarterly financial data and update.
Recent action has seen about -30% stripped out of shares over the past week. Moreover, the stock has registered increased average transaction volume recently, with the past month seeing 49% over what the stock has registered over the longer term.
“TGOD is on track to becoming the largest organic cannabis brand in the world as we continue to aggressively expand our global 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 a high-quality product with industry-leading margins. We are on schedule to scale up our new facilities to bring annual capacity of 170,000 organic kgs online. With international sales in Q4 2018, anticipated supply and distribution agreements, domestic sales commencing in Q1 2019, and additional global M&A opportunities, we expect a number of significant catalysts for our Company in the near term”, continued Athaide.
Now commanding a market cap of $663.26M, TGODF has a significant war chest ($261.8M) of cash on the books, which is balanced by about $14M in total current liabilities. The company is pre-revenue at this point. This is an exciting story, and we look forward to a follow-up chapter as events transpire. Sign-up for continuing coverage on shares of $TGODF stock, as well as other hot stock picks, get our free newsletter today and get our next breakout pick!
Disclosure: we hold no position in $TGODF, either long or short, and we have not been compensated for this article.