26 May, 2020, 07:30 ET
- Highly Dutch expands market potential to approximately 70% of the Canadian market compared to 25% for the premium segment
- Dual branding strategy addresses both premium and mainstream consumer
- First certified organic 28-gram product in Canada targets daily users and helps convert illicit market to safe legal sources
- Leverages TGOD's unmatched capabilities to produce certified organic cannabis at scale with competitive cost structure and attractive gross margins
TORONTO, May 26, 2020 /CNW/ - The Green Organic Dutchman Holdings Ltd. (the "Company" or "TGOD") (TSX:TGOD) (US:TGODF), a leading producer of premium certified organic cannabis, is pleased to announce that it has made its first shipment of Highly Dutch, TGOD's new mainstream brand designed for regular users. Starting today, Highly Dutch is available in Quebec in a one-ounce format (28 grams) of its Rotterdam OG Indica strain and will become available in additional provinces during the weeks ahead. This launch will be followed by additional Highly Dutch strains, sizes, and formats later this summer.
Recent studies indicate that daily users make up 26% of cannabis consumers in Canada and that their consumption represents approximately 90% of the total volume being sold. Highly Dutch's value proposition has been tailored specifically to meet the needs of regular users. Research has also highlighted that 30% of daily users purchase their cannabis in a one-ounce format, and 14% purchase it in a half-ounce format, which guided the brand's packaging strategy. Consumers can visit highlydutch.ca for additional information on the brand.
"Our scaled production enables us to address a larger segment of the market that prefers consuming high-quality organic cannabis. Our research also shows that value-conscious consumers prefer buying cannabis in larger volumes, which is why we are launching with Highly Dutch's one-ounce format (28 grams)," commented Brian Athaide, CEO of TGOD. "This launch is consistent with plans announced in the prospectus we filed in April and reflects our commitment to expanding our portfolio and consumer reach. Highly Dutch allows us to significantly broaden our consumer base and better leverage the significant organic cultivation infrastructure we have built while continuing to focus on the premium segment with the TGOD brand," continued Athaide.
Quebec is the first province where TGOD deploys its dual branding strategy; Highly Dutch's debut coincides with the launch of four other products from TGOD's premium brand in the province – Happy Hibiscus Maté CBD/THC (tea), Happy Hibiscus Maté THC (tea), Unite Organic dried flower, and Harmony Organic dried flower.
Known for its award-winning glass jar, TGOD started selling premium certified organic cannabis in the recreational market in August 2019 with a small pilot in Ontario at the OCS. As it ramped up its production, it gradually expanded its distribution and product offerings. Its products are now available to medical patients nationally and in recreational stores in every province except Prince Edward Island.
TGOD worked in partnership with Velvet Management Inc. ("Velvet") on its Highly Dutch distribution strategy. Velvet is the Company's exclusive sales agent for its adult-use cannabis products in Canada.
About The Green Organic Dutchman Holdings Ltd.
The Green Organic Dutchman Holdings Ltd. (TSX: TGOD) (US‐OTC: TGODF) is a premium certified organic cannabis company focused on the health and wellness market. Its certified‐organic cannabis is grown 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 organic teas, infusers and vapes. 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 and December 19, 2019 trade on the TSX under the symbol "TGOD", "TGOD.WT" and "TGOD.WS", 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.
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 production timelines, production volumes, statements about the launch of the Company's cannabis 2.0 products, and statements regarding the future performance of the Company. 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.
SOURCE The Green Organic Dutchman Holdings Ltd.
For further information: Media Relations: Sebastien Bouchard, [email protected], (647) 272‐2476; Investor Relations: Shane Dungey, [email protected], (403) 389‐9911
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