TORONTO,
May 14, 2019 /CNW/
- The Green Organic Dutchman Holdings Ltd. (the "Company" or
"TGOD") (TSX: TGOD) (US: TGODF) is pleased to report its financial
and operational results for the three months ended March 31, 2019. These filings are available for
review on the Company's SEDAR profile at www.sedar.com.
Q1 Highlights:
The Company:
- Is on-track with construction at Hamilton and Valleyfield sites, with investment amounting
to $46.9 million in the first quarter
of 2019, an increase of $7.4 million
compared to $39.5 million incurred in
the fourth quarter 2018.
- Achieved revenues primarily from HemPoland of
$2.4 million, a 28% increase over the
prior quarter.
- Launched its Grower's Circle on March 25th, 2019, commencing direct to
patient medical sales in Canada
with products from its existing Hamilton facility. However, the Company did
not record any material revenue from Canada in the period as it completed a small
number of shipments prior to the end of March with the bulk of the
March orders being shipped in April
2019 and therefore being recognized in the second quarter of
2019.
- Ended the quarter with a strong balance sheet and
liquidity, including $224.4 million
of cash and restricted cash to continue funding its facilities
expansion as well as for operating costs and international
growth.
- Experienced a net loss of $14.1
million as it continues its preparation for commercial
production and entry into the recreational market later this year.
The net loss improved by $4 million
compared to the previous quarter as a result of increasing sales in
Poland and stronger net results
from Epican in Jamaica rolling
into TGOD's financials; management also maintained a disciplined
approach to operational costs as it ramps up for commercialization
of the products in Canada.
Other key updates
The Company:
- Reached a settlement for cannabis zoning with the
City of Hamilton for the
Hamilton facility, paving the way
to growing at scale in the City.
- Progressed business development activities, demonstrated
by the partnership with Symrise in Califormulations announced
subsequent to quarter end, which accelerates the company's plans to
participate in the $20 billion U.S.
functional beverage category, including wellness, energy and sport
recovery. These capabilities make the Company a stronger potential
partner for global beverage and CPG companies.
- Added deep pharmaceutical and medical experience to its
team with the additions of Jacques
Dessureault and Dr. Caroline
MacCallum to its Board of Directors, and Dr. Rav Kumar as its Chief Science
Officer.
- Entered into purchase agreements for multiple EnWave
120kW REV machines, accelerating the drying process and overall
seed to sale process for the Company.
- Entered into an extraction agreement with Valens for the
processing, extraction and purification of TGOD's cannabis and hemp
biomass under conditions specified by the Company. TGOD will supply
Valens with significant quantities of cannabis and hemp while
Valens will provide extraction purification services, processing
the cannabis and hemp into premium quality resins and
distillates.
- Advanced its discussions with provincial boards,
executing supply agreements with the Ontario Cannabis Store in
February and BC Cannabis Store in May.
- Achieved its second organic certification for the
Hamilton Facility from Pro-Cert.
Investor conference call to discuss first quarter
results
Management will host a conference call tomorrow at
9:00 a.m. Eastern Time
to discuss the results. Participants may access the call by
dialing 416 764-8688 (Toronto) or
1 888 390-0546 (North America).
For those unable to participate on the live call, a playback
will be available for one week after the conference call using this
URL:
https://event.on24.com/wcc/r/2000560/A41E1009460930B4049B2D2E19CCCFED
Management Commentary
"Q1 results are continued proof that we are delivering on
our business plan with executional excellence," commented
Brian Athaide, CEO of TGOD. "The
Company is now bringing to market high quality, premium certified
organic cannabis flower and hemp-derived CBD oils. With the
construction of the Hamilton
facility nearing completion and our flagship Valleyfield facility on track, TGOD will soon
be able to sell at scale in Canada
and rapidly grow the organic segment that is currently being
significantly under-served by the market," continued
Athaide.
ABOUT THE GREEN ORGANIC DUTCHMAN HOLDINGS
LTD.
The Green Organic Dutchman Holdings Ltd. (TSX: TGOD)
(US: TGODF) 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. TGOD also
has organic hemp CBD oil operations in Canada, and through its wholly owned
subsidiary HemPoland distributes premium hemp CBD oil in the EU.
The Company grows high quality, certified 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 planned capacity of 219,000 kgs and
is building 1,643,600 sq. ft. of cultivation and processing
facilities across Ontario,
Quebec, Jamaica and Denmark.
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.
For more information on The Green Organic Dutchman
Holdings Ltd., please visit www.tgod.ca.
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 future business development activities, statements
about facility construction, statements about production timing,
efficiencies, capacities and ramp-up, statements about future
production, statements about the offering of any particular
products by the Company in any jurisdiction and statements
regarding the future performance 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.
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SOURCE The Green Organic Dutchman Holdings Ltd.