The Canadian cannabis sector has been trending lower following the legalization of recreational cannabis on October 17th and we have been closely monitoring this.
The opening of Canada’s recreational cannabis market proved to be a “sell the news” type of event and we have been watching the pullback. We believe that the recent weakness is overdone and continue to monitor this trend.
The weakness has created an opportunity for investors looking to capitalize on the Canadian cannabis industry and today we have highlighted a company that we have been following closely. The company, the Green Organic Dutchman Holdings (TGOD.TO) (TGODF) has been executing flawlessly and is a company worth watching. Although the Canadian cannabis producer has significant advanced its fundamental story, the shares have been under considerable pressure and we provided an update on the company.
Announces a Massive Distribution Agreement Across Canada
Last month, The Green Organic Dutchman reported a significant relationship and supply partnership with Velvet Management Inc. for sales and distribution to provincial liquor and cannabis boards across Canada. Through the partnership with Velvet, TGOD has secured a strong entry point with every provincial liquor and cannabis board across Canada.
Velvet is a new company with distinct ownership created by the largest wine distributor in Canada, Philippe Dandurand Wines. Dandurand has been a successful Canadian enterprise since 1968, specializing in importing wines from various countries around the world. Dandurand is the largest wine importer in Canada, managing more than $625 million of retail sales across 1,600 stores, and 4 million cases in annual volume. With over 115 employees and offices in Montreal, Toronto, Calgary and Vancouver, Dandurand has the largest wine salesforce in the country.
Dandurand had the foresight to see the opportunity in Canada’s recreational cannabis market and established Velvet Management Inc. to focus on the sales and marketing of cannabis brands. TGOD is the company’s first cannabis partner and will be the exclusive supplier of organic cannabis.
TGOD is laser focused on securing best-in-class distribution for its premium, certified organic cannabis. Sales and relationships with provincial cannabis and liquor boards is a critical aspect to TGOD’s success and the strategic supply agreement with Dandurand significantly enhances the company’s growth prospects.
Health Canada Grants TGOD a Sales License
In October, The Green Organic Dutchman reported a significant development and was granted a Sales License from Health Canada for its Ancaster, Ontario facility. This represented a major milestone for the Canadian organic cannabis producer and comes ahead of a planned Founders Club product launch in January.
The Green Organic Dutchman has been nothing short of an execution story and has been perfecting its organic grow methodology in Ancaster. Following the granting of a Sales License, the company is prepared for the first-quarter launch to medical patients as well as second-quarter launch to the recreational market.
The company has been working aggressively on increasing production capacity and increasing its leverage to burgeoning international markets. In addition to the work being done at the Ancaster facility, TGOD is currently cultivating cannabis in Valleyfield, Quebec at its breeding facility, in Jamaica with Epican, and in Poland with HemPoland.
The Green Organic Dutchman is in the middle of a major expansion and is on schedule to progressively increase the amount of cannabis being produced throughout 2019, targeting 195,000 kilograms of capacity by the end of the year. TGOD has been executing on a strategy to secure significant distribution networks in Canada, Europe, Jamaica, and Latin America while scaling operations for medical and adult use markets around the world. We are favorable on the growth prospects heading into 2019 and will monitor how the team continues to execute.
A Company Worth Watching
Although The Green Organic Dutchman has significantly advanced its fundamental story and has attractive growth prospects, the shares have been under pressure and we continue to monitor price movements.
One of the factors that have contributed to the recent weakness is the relationship with Aurora Cananbis (ACB.TO) (ACBFF). Last month, Aurora Cannabis CCO Cam Battley stepped down from The Green Organic Dutchman’s Board of Directors. Shortly after this announcement, Aurora decided not to pick up the option to acquire an additional 8% of TGOD and started to sell down its position in the company.
Although the relationship with Aurora Cannabis was an attractive aspect of the TGOD story, the company is well capitalized and well positioned to execute going forward. To stay up to date with TGOD, please reach out to email@example.com
StoneBridge Partners, an affiliate of Technical420 (separately owned business), invested in The Green Organic Dutchman prior to the IPO and owns 923,000 common shares and 75,700 share purchase warrants. During the next few months, we plan to sell shares in TGOD. Please read the full disclosure below or by clicking here.
Technical420.com is owned by StoneBridge Partners LLC (SBP), a Florida corporation. The principles of StoneBridge Partners LLC participated in the IPO for The Green Organic Dutchman Holdings, Ltd. (TGOD) & own a collective 920,065 free trading shares & 71,156 warrants. The principals of StoneBridge Partners LLC intend to sell their positions in (TGOD) for profit. This disclaimer will be updated at such time. SBP have been compensated a monthly retainer of seven thousand ($7,000 USD) per month to disseminate information on the company (TGOD) ending on 12/20/18. We may buy or sell additional shares of (TGOD/TGODF) in the open market at any time, including before, during or after the Website and Information, to provide public dissemination of favorable Information about The Green Organic Dutchman Holdings.