In the category of recent comeback plays in the cannabis patch, one would have to look far and wide to find a more interesting example than that of Green Organic Dutchman Holdings Ltd (OTCMKTS:TGODF). To further flesh out the story, the company just announced a detailed construction update on its domestic Valleyfield and Hamilton operations where “significant progress has been made” towards the completion of both facilities.
According to the release, “TGOD recently identified a need for design modifications during the construction process. As a result of learnings, the engineering design improvements enable optimized facility throughput which, together with organic specific modifications, provide a forecasted domestic productive capacity increase from 156,000 kg to 202,500 kgs. The recently improved designs are being implemented in phases to leverage efficiencies and further learnings from each prior phase, with the objective of achieving best in class results.”
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.
According to company materials, “The Green Organic Dutchman Holdings Ltd. (TSX:TGOD) is a publicly traded, premium global organic cannabis company, with operations focused on medical cannabis markets in Canada, Europe, the Caribbean and Latin America, as well as the Canadian adult-use market. 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 170,000 kgs and is building 1,382,000 sq. ft. of cultivation facilities across Ontario, Quebec and Jamaica.”
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As noted above, TGODF just announced a detailed construction update on its domestic Valleyfield and Hamilton operations where “significant progress has been made” towards the completion of both facilities.
Traders will note 47% piled on for shareholders of the name during the trailing month. Moreover, the company has registered increased average transaction volume recently, with the past month seeing 84% beyond its prior sustained average level.
“Not only have we addressed the important redesign requirements, we have also made significant improvements to the operating capacity and capital timing of our facilities, resulting in an additional 46,500 kgs of productive capacity,” said Brian Athaide, CEO of TGOD. “This allows us to bring additional product to both Canadian consumers and global markets. We are also excited to supply our first patients in the Growers Circle with premium organic cannabis this month, generating our first domestic revenues.”
Earning a current market cap value of $758.93M, 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. 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.