TORONTO, Oct. 10, 2018 /CNW/ - The Green Organic Dutchman Holdings Ltd. (the "Company" or "TGOD") (TSX:TGOD, US:TGODF) is pleased to provide the following update on its operations.
$75 Million Bought Deal Financing
TGOD is committed to becoming the largest organic cannabis brand in the world, and the Company is on an excellent path with the additional $75 million bought deal financing announced last week. This additional capital will be used to advance the Company's rapid and strategic international expansion plan, with the next phases of growth to focus on Europe and Latin America. With potential consumer populations of nearly 750,000,000 and 650,000,000 respectively, these markets represent a key development opportunity in the Company's global growth plan. The Company will utilize the funds from the financing to establish strategic product manufacturing, which adheres to the Company's proprietary organic growing principles, and robust sales and distribution capabilities across Europe and Latin America. Within these markets and beyond, TGOD will continue to invest in global cultivation opportunities and technology partnerships to deliver unique and innovative forms of its premium organic product to consumers.
TGOD has made substantial progress towards its goal of having operations in 12 countries on 3 continents by the end of 2018 with its recently announced investments in Jamaica and Poland, and the planned expansion in Denmark.
In Jamaica, TGOD's partner Epican is on track to open 5 dispensaries by Q1 of 2019, including the flagship store in Kingston that opened in July. Cultivation on the Company's newly leased land is on schedule for completion in the fourth quarter of 2018. This new site brings TGOD's productive capacity in Jamaica to 14,000 kgs, a large portion of which will be dedicated to TGOD branded products for export to global markets.
Last week, TGOD closed the acquisition of HemPoland. Europe is home to three-quarters of a billion potential consumers, and HemPoland is a leading manufacturer and marketer of premium CBD oils within this market. This acquisition provides TGOD with access to HemPoland's significant distribution network, state-of-the-art hemp oil extraction technology and the premium top selling Cannabigold brand. The transaction also provides immediate revenue for TGOD. The Company has also made excellent progress with its joint venture partner in Denmark, in developing R&D and cultivation capabilities. An application has been filed for a cannabis cultivation license from the Danish authorities, and approval is expected during the last quarter of 2018.
TGOD is focused on building the leading organic cannabis brand in the world, and will be bringing leading technologies to its production in Jamaica, Poland and Denmark. This will ensure TGOD's brand has the best efficacy and product delivery for medical patients and adult use consumers across all product forms.
In Canada, TGOD continues to make progress on construction in both Hamilton and Valleyfield. The facilities consist of high efficiency sites conforming to GMP standards with LEED certification. Timelines remain on schedule with cultivation beginning Q1 2019 in Hamilton, Ontario and in Q2 in Valleyfield, Quebec.
The Company has been working with consumers around the globe to gain valuable insights to shape the development of the TGOD brand. The response to organically-certified cannabis has been very strong across both the recreational and medicinal markets and the response to the TGOD brand name has been strong across multiple countries and languages.
Please visit the Company's previously issued press release for a look and feel of TGOD's premium organic cannabis brand by clicking here.
TGOD is preparing to launch a "Founders Club" to select medical patients in January 2019. The Company will then expand its product offerings to more patients during the first half of 2019, and further to recreational markets in the second half of the year. TGOD expects to have full national distribution across all provincial and territorial adult use market during 2019.
Strategic Talent Acquisition
TGOD continues to make significant progress on the buildout of its skilled leadership team with unprecedented experience in CPG and branded product, pharma and retail. Management is focused on quality of execution and being a leader in leveraging the experience of its team to shape the future path of the global cannabis industry. With the newest additions to our senior team, the Company now has over 200 years of CPG experience
The Company has also added Tim Seymour to its advisory board to assist with US strategies, including planning for a NYSE listing.
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 research & development company licensed under the Access to Cannabis for Medical Purposes Regulations ("ACMPR") to cultivate medical cannabis. The Company carries out its principal activities producing cannabis from its facilities in Ancaster, Ont., pursuant to the provisions of the ACMPR and the Controlled Drugs and Substances Act (Canada) and its regulations.
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 in 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.
For further information: CONTACT INFORMATION: Investor Relations, Email: [email protected], Phone: 1 (416) 900-7621, www.tgod.ca