- In discussion with potential buyers to redevelop the site
- Analyzing opportunities to optimize cost structure while
continuing to expand production capacity and redeploying
capital
- Operations to remain in Quebec
TORONTO, Feb. 19, 2021 /CNW/ - The Green Organic Dutchman
Holdings Ltd. ("TGOD") or the "Company") (TSX: TGOD) (US: TGODF), a
leading producer of premium certified organically grown cannabis,
today unveiled plans to monetize under-utilized assets at its
Valleyfield site.
In 2019 TGOD made the strategic decision to use its Valleyfield site as a processing hub while
maintaining the optionality to start cultivation at a later date.
TGOD has now retained the services of a commercial real estate
advisor to identify potential buyers for its Valleyfield site, focused on the
state-of-the-art hybrid main greenhouse. Multiple bids are
being considered, and the transaction could result in a complete or
partial sale of the site.
"The Canadian cannabis landscape has evolved since legalization
and so have our real estate requirements. With our shift to
the value-added part of the production chain, large indoor
cultivation facilities such as Valleyfield are no longer necessary to
continue growing our business," stated Sean
Bovingdon, TGOD's Chief Financial Officer and Interim Chief
Executive Officer. "Selling a portion or the totality of the
greenhouse will result in a significant reduction in operating
costs while providing capital to reduce debt and reinvest in future
growth opportunities, including considerations in the US."
Adapting to Changing Market Conditions
The Canadian
cannabis industry has gone through a deep transformation with the
approval of outdoor cultivation sites – approximately 450 acres of
land were used for outdoor cannabis cultivation in 2020. This
shift disrupted many licensed producers' business plans and
resulted in biomass surpluses. Based on current market
forecasts, TGOD's main greenhouse in Valleyfield could be, for the right offer,
monetized to allow the Company to continue its path to right sizing
and profitable operations. Expected export opportunities are
addressable with existing production capacity, while the option to
purchase cannabis biomass from other producers for extraction,
including in Quebec, offers a more
efficient use of capital. The Company remains committed to
maintaining a significant portion of its operations, including all
2.0 product manufacturing, in Quebec.
Organic Certification
With an organic certification
from Pro-Cert, TGOD continues to benefit from its unique
positioning as a licensed producer of premium certified organically
grown cannabis. Its fully licensed site in Ancaster, ON produces premium dried flower
used as part of TGOD's portfolio with a focus on craft quality
cannabis and genetics research. The Company intends to
continue relying on Ancaster for
organic flower production while tapping the organic wholesale
market for its extraction needs.
About The Green Organic Dutchman Holdings Ltd.
The
Green Organic Dutchman Holdings Ltd. (TSX: TGOD) (US–OTC:
TGODF) is a premium certified organically grown cannabis company
focused on the health and wellness market. Its organic
cannabis is cultivated in living soil, as nature intended.
The Company is committed to cultivating a better tomorrow by
producing its products responsibly, with less waste and impact on
the environment. Its two Canadian facilities have been built to
LEED certification standards and its products are sold in
recyclable packaging. In Canada, TGOD sells dried flower
and oil, and recently launched a series of next–generation cannabis
products such as hash, vapes, organic teas and dissolvable
powders. Through its European subsidiary, HemPoland, the
Company also distributes premium hemp CBD oil and CBD-infused
topicals in Europe. By leveraging science and technology, TGOD
harnesses the power of nature from seed to sale.
TGOD's Common Shares and warrants issued under the indentures
dated November 1, 2017, December 19,
2019, June 12, 2020,
October 23, 2020, and December 10, 2020 trade on the TSX under the
symbol "TGOD", "TGOD.WT", "TGOD.WS", "TGOD.WR", "TGOD.WA" and
"TGOD.WB", respectively, and TGODF trades in the US on the OTCQX.
For more information on The Green Organic Dutchman Holdings Ltd.,
please visit www.tgod.ca.
Cautionary Statements
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 include,
but are not limited to, statements about production capacity and
statements about demand for indoor cultivation real estate.
Forward–looking statements are frequently characterized by words
such as "plan", "continue", "expect", "project", "intend",
"should", "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 (including market
conditions) and other factors that could cause actual events or
results to differ materially from those projected in the
forward–looking statements, including those risk factors described
in the Company's most recently filed Annual Information Form
available on SEDAR. 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 the TSX nor the TSX's 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.
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SOURCE The Green Organic Dutchman Holdings Ltd.