TORONTO, Nov. 13, 2018 /CNW/ - The Green Organic Dutchman
Holdings Ltd. (the "Company" or "TGOD") (TSX:
TGOD) (US:TGODF) reported its financial and operational results
for the third quarter of fiscal 2018, ended September 30th, 2018. These filings
are available for review on the Company's SEDAR profile at
www.sedar.com
Q3 Highlights:
The Company:
- Continues to make significant progress on the construction of
its facilities in Hamilton,
Ontario and Valleyfield,
Quebec, having deployed a total of $33 million in capital expenditures in the third
quarter of 2018. TGOD is on schedule to launch commercial
production in both facilities during the first half of 2019.
- Is optimizing commercial cultivation at its existing facility
in Hamilton, developing five new
strains for placement into the medical and recreational markets to
ensure it's in position to provide patients and consumers with
consistent, reliable, premium product. The most recent commercial
crop harvested will be allocated to TGOD's select "Grower's Circle"
in January 2019. The Growers Circle
will provide early investors and patients who rely on medical
cannabis access to the Company's first commercial crop. It is
limited to 200 patients and designed to support those who supported
TGOD and those who are most in need of medical cannabis
therapy.
- Is confident in a successful resolution of the appeal filed
with the LPAT ("Local Planning Appeals Tribunal") in Hamilton regarding a zoning amendment required
to produce cannabis in its new 123,000sq ft hybrid facility. TGOD
has approval from the City's Agricultural and Rural Affairs
Committee, the Planning Committee, the Ontario Federation of
Agriculture and the support of the majority of local residents
recently polled. Management is confident in a successful resolution
in Q1 2019. TGOD's existing two facilities on the Hamilton site (total 27,000sq ft), are already
zoned to produce medical cannabis.
- Invested in Jamaica, through
Epican Medicinals, with current retail sales in its Kingston store and planned expansion into four
additional retail stores and expanded production capacity to 14,000
kgs.
- Expanded its international footprint with the HemPoland
acquisition that closed October 1.
HemPoland has established production and sales of CBD oil and other
industrial hemp products across Europe, providing immediate revenue for
TGOD.
- Expects to have 170,000 kgs of annual cannabis capacity
across Canada and Jamaica when construction is completed, as
well as scalable hemp capacity in Poland. Utilizing state of the art facilities,
the lowest power rates in Canada
and premium pricing for organics, TGOD expects to have industry
leading margins once achieving scale in late 2019.
- Has developed both THC and CBD beverage formulations with
consumer pleasing taste profiles. TGOD expects to be ready before
legalization occurs for beverages with a number of beverage
products in varying flavours and formulations.
- Entered into a joint venture with one of largest
pharmaceutical distributors in Mexico, ready to position TGOD products across
7,600 potential points of sale and take advantage of the new
regulatory rulings in Mexico in
support of medical and recreational cannabis use.
- Continues to negotiate supply and distribution agreements
across Canada to meet the strong
provincial demand for our organic product. TGOD is establishing
national sales capabilities for medical and recreational markets in
2019.
- Expanding its operations, administration and marketing
infrastructure to rapidly scale its business as noted above,
resulting in a loss for the three and nine months ended
September 30, 2018 of $11.3 million and $27.1
million respectively, which is in line with budgeted
expectations. With the accelerated exercise of 16.45 million
warrants at an average of $2.91 per
warrant, and the completion of the $76.2
million bought deal offering post quarter end (includes 1.6
million underwriter warrants that were exercised), the Company
currently has cash of over $300
million on hand to execute its plans.
Please view our latest construction videos
below:
Hamilton construction
progress video
Valleyfield construction progress
video
"TGOD is on track to becoming the largest organic cannabis
brand in the world as we continue to aggressively expand our global
footprint, including Jamaica,
Europe and Latin America, establishing leadership in
organic cannabis." said Brian
Athaide, CEO of TGOD. "We are excited with the quality and
yield of our first commercial crop and are seeing our substantial
investments in research and development leading to high quality
product with industry leading margins. We are on schedule to
scale up our new facilities to bring annual capacity of 170,000
organic kgs online. With international sales in Q4 2018,
anticipated supply and distribution agreements, domestic sales
commencing in Q1 2019, and additional global M&A opportunities,
we expect a number of significant catalysts for our Company in the
near term", continued Athaide.
"TGOD has secured its financial future by raising over
$450 million, fully funding our
current domestic and international plans, and we have no plans to
return to the market for additional capital at this time." said
Sean Bovingdon, Chief Financial
Officer. "We have de-risked the capital side of our business and
with our focus now on delivering medical and recreational sales in
Canada and internationally. We
expect to drive significant value for shareholders in 2019 and
beyond."
ABOUT THE GREEN ORGANIC DUTCHMAN HOLDINGS LTD
The Green Organic Dutchman Holdings Ltd. is a premium global
organic cannabis company, with operations focused on medical
cannabis markets in Canada,
Europe, the Caribbean and Latin
America and 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.
The Company, through its wholly-owned operating subsidiary The
Green Organic Dutchman Ltd., holds a license (the "License") issued
by Health Canada pursuant to the Access to Cannabis for Medical
Purposes Regulations (the "ACMPR") which allows the Company to
produce and conduct research at its 100 acre property near
Hamilton, Ontario (the "Hamilton
Facility") dried marijuana, marijuana plants and fresh marijuana,
and to sell such cannabis products within Canada to licensed producers or licensed
dealers qualified under Section 22(2) of the ACMPR. The License was
amended on April 20, 2018 to include
the production and sale of cannabis oil and on October 12, 2018 to include sales to medical
clients.
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.
Forward-Looking Information Cautionary Statement
This news release includes statements containing certain
"forward-looking information" within the meaning of applicable
securities law ("forward-looking statements"). Forward looking
statements in this release includes, but is not limited to,
statements about the future legalization of recreational cannabis
internationally, statements about the outcomes of zoning appeals in
Hamilton, statements about future
research, development and innovation by the Company, statements
about production capacity, statements about costs and margins,
statements about the offering, sales and pricing of any particular
products by the Company in any jurisdiction, statements about
raising capital, and statements regarding the future performance
and shareholder value of the Company. Forward-looking statements
are frequently characterized by words such as "plan", "continue",
"expect", "project", "intend", "believe", "anticipate", "estimate",
"may", "will", "potential", "proposed" and other similar words, or
statements that certain events or conditions "may" or "will" occur.
These statements are only predictions. Various assumptions were
used in drawing the conclusions or making the projections contained
in the forward-looking statements throughout this news release.
Forward-looking statements are based on the opinions and estimates
of management at the date the statements are made, and are subject
to a variety of risks and uncertainties and other factors that
could cause actual events or results to differ materially from
those projected in the forward-looking statements. The Company is
under no obligation, and expressly disclaims any intention or
obligation, to update or revise any forward-looking statements,
whether as a result of new information, future events or otherwise,
except as expressly required by applicable law.
Neither TSX nor its Regulation Services Provider (as that
term is defined in the policies of Toronto Stock Exchange) accept
responsibility for the adequacy or accuracy of this
release.
SOURCE The Green Organic Dutchman Holdings Ltd.