The big question that lies ahead for Green Organic Dutchman Holdings Ltd (OTCMKTS:TGODF) is: will she hold? The stock is scraping along at a key point in the pattern, and there are likely plenty of stops lurking below. To help matters, the company just announced that it has received its inaugural purchase order from the BC Liquor Distribution Branch, further expanding its Canadian distribution footprint.
According to the release, the Company also obtained a license amendment from Health Canada, allowing it to launch cultivation operations at its flagship Valleyfield hybrid greenhouse.
Green Organic Dutchman Holdings Ltd (OTCMKTS:TGODF) is a research & development company licensed under the Access to Cannabis for Medical Purposes Regulations 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 has received its inaugural purchase order from the BC Liquor Distribution Branch, further expanding its Canadian distribution footprint.
Even in light of this news, TGODF has had a rough past week of trading action, with shares sinking something like -15% in that time. That said, chart support is nearby and we may be in the process of constructing a nice setup for some movement back the other way. Over the past month, shares of the stock have suffered from clear selling pressure, dropping by roughly -22%. What’s more, the company has benefitted from a jump in recent trading volume to the tune of a bit less than 150% beyond what we have been seeing over the larger time frame.
“TGOD’s high-quality certified organic product and commitment to sustainable cultivation practices resonate with BC consumers. Based on the exceptionally positive feedback we received from our BC medical patients as well as on market research, we believe the province represents an enormous market opportunity for our brand,” commented Brian Athaide, CEO of TGOD. “As we continue ramping up production, we remain focused on expanding our distribution channels and achieving our goal of distributing nationally in Q1 2020.”
Earning a current market cap value of $156M, TGODF has a significant war chest ($63.1M) of cash on the books, which stands against about $68.3M in total current liabilities. One should also note that debt has been growing over recent quarters. TGODF is pulling in trailing 12-month revenues of $9.7M. However, the company is seeing recent declines on the top-line on a sequential quarterly basis, with revenues falling at -12.8% as of its latest reporting period. We will update the story again as 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.