From a technical perspective, Green Organic Dutchman Holdings Ltd (OTCMKTS:TGODF) is facing a critical test that may offer a clear and controllable opportunity for new investors looking to enter potential cannabis leadership plays into the pullback with a stop loss protection order – the $2.50 level is either going to hold at this point in TGODF or it isn’t. Perhaps helping the former case, the company just announced a supply partnership with Velvet Management Inc. for sales and distribution to provincial liquor and cannabis boards across Canada.
According to the release, Velvet is a new company with distinct ownership created by the largest wine distributor in Canada, Philippe Dandurand Wines. Dandurand has been a successful Canadian enterprise since 1968, specializing in importing wines from various countries around the world. Dandurand is the largest wine importer/agent in Canada, managing more than $625 million of retail sales across 1,600 stores, and 4 million cases in annual volume. With over 115 employees and offices in Montreal, Toronto, Calgary and Vancouver, Dandurand has the largest wine salesforce in the country.
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 a supply partnership with Velvet Management Inc. for sales and distribution to provincial liquor and cannabis boards across Canada. In all, we’ve witnessed more than -20% sucked out of share pricing for shareholders of the stock during the trailing week.
In addition, the stock has witnessed a pop in interest, as transaction volume levels have recently pushed 44% above the average volume levels in play in this stock over the longer term.
“TGOD’s cannabis is a premium offering, the best experience a consumer can receive,” said Csaba Reider, President of TGOD. “When we began the search for a distribution partner, we wanted the best – a partner with significant distribution capabilities and years of excellence in selling premium alcohol and wine. In Velvet Management we have found that partner.”
Now commanding a market cap of $696.26M, TGODF has a significant war chest ($257.6M) of cash on the books, which is balanced by about $15.1M in total current liabilities. The company is pre-revenue at this point. We will update the story again soon as developments 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.