Over the past week, The Green Organic Dutchman (OTCMKTS: TGODF) stock has fallen over 20% as a wave of bears swept across the cannabis market.
However, new developments in recent days helped the stock climb back to $3.13 a share, levels last seen before the market wide slide last week. Shares of The Green Organic are up over 59% so far in 2019.
New license for sale of cannabis oils
Green Organic Dutchman revealed on Monday this week the acquisition of a new license for selling cannabis oils. In the statement, the company said that Health Canada handed out the license which will allow for the utilization of the Hamilton facility in Ontario. For starters, Green Organic Dutchman won the production license for the cannabis oils mid-last year.
In the immediate aftermath of the license receipt, the company erected a supercritical CO2 extraction system. In particular, the facility would enable the company to process organic cannabis oils which are ultra-pure.
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The future of cannabis stock is unpredictable
This is just one in many strategic developments at the company which, ultimately, should enable it to compete with giants like Canopy Growers. In a recent comparison between the TGODF stock and that of Canopy, a Corporate Knights analyst noted that The Green Organic Dutchman stock is the more sustainable, in terms of returns.
However, some questions still linger concerning the true value of organic certification, something that TGODF uses as its strongest selling point. If investors buy the organic hype, then analysts expect a stronger appetite for the TGODF stock.
Another point of caution that analysts raise is that the legal cannabis market is still nascent and that there is no clear direction so far. Therefore, they find it a bit tricky to predict future performance for cannabis stocks, including The Green Organic Dutchman. Stay Tuned.
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Disclosure: we hold no position in $TGODF , either long or short, and we have not been compensated for this article.