TORONTO, Oct. 11, 2018 /CNW/ - The Green Organic Dutchman Holdings Ltd. (the "Company" or "TGOD") (TSX:TGOD) (US:TGODF) is pleased to announce it has entered into a strategic joint venture with LLACA Grupo Empresarial to create a 50/50 owned company to enter the medicinal cannabis market in Mexico. With this partnership, TGOD continues the expansion of its international portfolio, with sales and operations in multiple countries and continents around the world.
LLACA has developed proprietary distribution capabilities and has access to premier distributors with commercialized pharmaceutical and over-the-counter products providing access to 4,500 pharmacies and 3,100 supermarkets throughout Mexico.
LLACA will facilitate the importation, registration and strategic distribution of TGOD-branded organic cannabis and hemp-derived medical products into the Mexican market. LLACA has many years of distribution experience in Mexico, operating a significant warehouse network that provides 100% coverage within the country. This distribution network meets all technical requirements of the Mexican Ministries of Health and Finance to sell narcotics and nutraceuticals.
"This partnership combined with the recently proposed regulations for the Mexican medicinal cannabis market provides TGOD with a significant first mover advantage, at scale," said Brian Athaide, CEO of TGOD. "This is a pivotal step in our strategy to export TGOD branded products produced in Jamaica, Poland, and soon to be Canada and Denmark for the global markets. The distribution network includes over 7,600 potential retailers, significantly expanding our international footprint."
Beyond distribution, the joint venture will give TGOD full access to LLACA's strategic services, including distribution, warehousing, product registrations, regulatory representations and authorized clinical trials. These services are used by several international and national pharmaceutical companies.
"The Mexican population is approximately 125 million people, or roughly 3.5 times the size of Canada's population. We are thrilled to establish a presence in Latin America through Mexico with this strategic partnership," said Csaba Reider, TGOD's President. "This partnership with LLACA aligns us with an experienced commercial leader in a key strategic market. This is an exciting step in TGOD becoming the global leader in premium, organic cannabis."
"We are pleased to be partnering with TGOD," said Alejandro Perea, Medical Cannabis Commercialization Director of LLACA. "We respect TGOD's organic principles, which will serve well in the medical market in Mexico. We like their forward-thinking management and are excited about the brand. We expect that the Mexican market is ready for the organic cannabis story."
On Behalf of the Board of Directors,
The Green Organic Dutchman Holdings Ltd.
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 and Latin America and the soon to be legal 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 kg and is building 1,382,000 sq. ft. of cultivation facilities across Ontario, Quebec and Jamaica.
The Company has developed a strategic partnership with Aurora Cannabis Inc. (TSX:ACB) whereby Aurora has invested approximately C$78.1 million for 20% offtake from TGOD's local production. In addition, TGOD has raised approximately C$350 million and has over 20,000 shareholders.
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 and cannabis-infused products in Canada, statements about future research, development and innovation by the Company, 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.
SOURCE The Green Organic Dutchman Holdings Ltd.
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