- Global CBD market expected to hit $22 billion within 3 years
- TGOD to leverage HemPoland's strong expertise in the European hemp CBD market
- 158 acres of certified organic farmland located in Southern Ontario
- Planting underway with first harvest expected within 12 weeks
TORONTO, June 20, 2019 /CNW/ - The Green Organic Dutchman Holdings Ltd. (the "Company" or "TGOD") (TSX:TGOD) (US:TGODF) is pleased to announce its expansion into the global organic hemp CBD market with the launch of its Global Strategic Hemp Division. This new division will leverage TGOD's solid expertise in the European hemp CBD market to fuel growth and accelerate the development and commercialization of new products across its network of international partners.
"With the global CBD market expected to hit $22 billion in less than 3 years, it is clear that the segment is drawing substantial consumer demand," commented Brian Athaide, CEO of TGOD. "Our team has years of direct hands-on experience in the CBD space and we are excited to use this advantage to execute on a fast-moving market expansion strategy. CBD is a wellness product and has a natural fit with TGOD's certified organic positioning and the large segment of consumers who are increasingly demanding natural and organic products. The time to act is now, and TGOD has the team, the infrastructure and the capital to establish a significant presence in this market."
TGOD's acquisition of HemPoland in 2018 will continue to provide the Company with significant intellectual property and valuable insights as its Global Strategic Hemp Division expands into emerging hemp CBD markets. HemPoland saw its revenue for the first quarter grow by nearly 30% quarter over quarter as demand for high-quality hemp CBD products in Europe gains momentum.
HemPoland has years of experience in cultivating and processing EU-registered hemp varieties, which are very similar to those currently allowed for cultivation in Canada. Given that the processing of industrial hemp flowers for CBD was illegal in Canada until October 2018, HemPoland's experience in both research and development, as well as commercial extraction of hemp strains in an efficient manner, provides a distinct advantage to TGOD and its partners.
TGOD's Global Strategic Hemp Division will offer significant support to the Company's international partners by providing genetics, training on organic methods and standard operating procedures, as well as regulatory insights and other advisory support. This will allow for the production of consistent high-quality organic hemp and CBD in global markets. The division will initially work to support initiatives in Canada, Germany, Jamaica, Mexico, Poland and the U.S.A.
TGOD, through its European subsidiary, HemPoland, has already signed a distribution agreement with Mediakos, a leading German pharmaceutical distributor and has had in-depth discussions with co-packers and additional distributors to continue expanding its footprint across Europe.
The Company also plans to enter the U.S. hemp CBD beverage market through existing partnerships, providing TGOD with maximum flexibility and the ability to go to market with hemp-based CBD beverages quickly and with a capital light model.
In Canada, The Green Organic Hemp Ltd. ("TGOH"), a wholly-owned subsidiary of TGOD, has been licenced by Health Canada for the cultivation of organic hemp since 2018. TGOH grew a small test crop last year, and has successfully renewed the licence for the cultivation of a larger crop in 2019 on 158 acres of organic farmland in Southern Ontario. Planting activities are underway and the first harvest is expected within 12 weeks.
"Hemp is an incredible crop, one we can manufacture into mass market organic CBD products to establish an immediate market presence in Canada through tinctures and oils, while we prepare for the introduction of additional delivery methods such as vapes, beverages, edibles and topicals later this year," added Athaide.
TGOH intends to supplement its own harvest with large offtake agreements from experienced Canadian organic hemp cultivators, with a potential increase to its internal production of 50,000 kgs. Wholesale hemp supply agreements have already been secured, allowing TGOH to begin domestic production of organic hemp CBD products. The Company has already signed toll processing contracts with Valens GroWorks and Neptune Wellness Solutions to quickly ramp up production volumes.
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 hemp cultivation, harvest and internal production capacity, statements about future hemp CBD products, statements about entry into the US hemp CBD beverage market, statements about entry into other global markets, statements about future regulatory changes, 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.
SOURCE The Green Organic Dutchman Holdings Ltd.