One of the real disasters in the cannabis space during the bear market context that has dominated the action over the past few months is clearly Green Organic Dutchman Holdings Ltd (OTCMKTS:TGODF). The stock saw a strong boost to close out last week and should be on the radar this week as a result. To help further that positive vibe, the company just announced that it is reviewing financing alternatives in order to complete construction at its facilities in Ancaster, Ontario and Phase 1a at Valleyfield, Quebec.
According to the release, “As previously disclosed, the Company had been engaged in discussions for ordinary course commercial bank facilities and equipment leasing. However, due to changing market conditions, those sources of financing have been unavailable on acceptable terms within the timeframes required, leading the Company to commence a review of additional alternatives. The Company currently has no debt and $56.7 million in cash available in Canada, including $40.2 million in restricted cash allocated to capital expenditures.”
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 that it is reviewing financing alternatives in order to complete construction at its facilities in Ancaster, Ontario and Phase 1a at Valleyfield, Quebec.
The stock has suffered a bit of late, with shares of TGODF taking a hit in recent action, down about -39% over the past week. Over the past month, shares of the stock have suffered from clear selling pressure, dropping by roughly -55%. In addition, the stock has seen a jump in recent trading volume to the tune of nearly 290% over what the stock has registered over the longer term.
According to the release, “Construction at Ancaster is largely complete with all grow rooms licensed by Health Canada and approximately 6 weeks left before substantial completion of the processing facility. The evidence package for this final component is expected to be submitted to Health Canada by the end of November for licensing. The Company will prioritize any financing secured to accelerate commercial production in order to ramp-up revenues. TGOD already has supply agreements in place with Alberta, British Columbia and Ontario, and plans to distribute nationally as production increases in 2020. Portfolio development is underway for Cannabis 2.0 with first phase of product launches scheduled for December 2019, including organic teas and infusers.”
Earning a current market cap value of $248M, TGODF has a significant war chest ($122.7M) of cash on the books, which is balanced by about $32.5M in total current liabilities. TGODF is pulling in trailing 12-month revenues of $7.2M. In addition, the company is seeing recent top-line growth, with sequential quarterly revenues growing at 20.4%. We will update the story again as soon as further details emerge. 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.