Support Shows Up for Green Organic Dutchman Holdings Ltd (OTCMKTS:TGODF)

Support Shows Up for Green Organic Dutchman Holdings Ltd (OTCMKTS:TGODF)

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Green Organic Dutchman Holdings Ltd (OTCMKTS:TGODF) just announced its results for the fourth quarter and fiscal year ended December 31, 2019. According to the release, the company posted quarterly revenue of $3.25 million ($11.16 million for the year) consisting of hemp-derived product sales in Europe of $2.56 million ($9.88 million for the year) and sales from cannabis products in Canada of $0.69 million ($1.28 million for the year).

The company also announced that it unveiled a new strategic, construction and operating plan, including a series of actions to reduce the Company’s financing requirements and to calibrate construction of cultivation facilities to align with the adjusted market conditions in Canada. In particular, the Company’s construction of its Valleyfield facility has been demarcated into smaller phases, while providing TGOD with the optionality to recommence expansion as market conditions evolve.

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 its results for the fourth quarter and fiscal year 2019, including quarterly revenue of $3.25 million, consisting of hemp-derived product sales in Europe of $2.56 million, and sales from cannabis products in Canada of $0.69 million.

Even in light of this news, TGODF has had a rough past week of trading action, with shares sinking something like -22% 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 -45%. In addition, the company has seen interest climb, with an increase in recent trading volume of 41% over what the stock has registered over the longer term.

“While 2019 was a challenging year for the entire sector, we have made significant progress on the operational front and adjusted our construction and operating plan to preserve shareholder capital and in light of changing market conditions,” commented Brian Athaide, CEO of TGOD. “Despite taking impairment charges this quarter, as we continue to evaluate financing options, we note that the value of our assets still far exceeds our liabilities.  With our first 2.0 product, TGOD Infusers, now available, our teas and vapes launching next month, as well as additional launches planned later this year, we anticipate continued sales momentum for the rest of 2020.”

Now commanding a market cap of $78M, TGODF has a significant war chest ($36.1M) of cash on the books, which compares with about $53.2M in total current liabilities. TGODF is pulling in trailing 12-month revenues of $11M. In addition, the company is seeing major top-line growth, with y/y quarterly revenues growing at 66.6%. As more color becomes clear on the name, we will review the situation and update our take. 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.