TORONTO, Aug. 13, 2019 /CNW/ - The Green Organic Dutchman Holdings Ltd. (the "Company" or "TGOD") (TSX: TGOD) (US: TGODF) is pleased to report its financial and operational results for the three and six months ended June 30, 2019. These filings are available for review on the Company's SEDAR profile at www.sedar.com.
Is nearing completion of construction at its Hamilton site and Phase 1 at its Valleyfield site, with investment amounting to $53.1 million in the second quarter of 2019, bringing the total additions year to date to $100.9 million.
Achieved revenues of $2.9 million, a 20% increase over the prior quarter derived primarily from Europe. In Canada, the Company launched its pilot "Grower's Circle", which included sales to a small number of medical patients to test the market and the Company's distribution capabilities. The Company launched two new products in Q2 and expects to start a similar pilot in the Ontario recreational market during Q3-2019.
Experienced a net loss of $16.6 million for Q2-2019. Management continued to maintain a disciplined approach to operational costs as it prepares for commercialization of its products in Canada and internationally.
Other key updates in the quarter
Announced provincial board supply agreements with Alberta Cannabis and BC Cannabis Stores, expanding its footprint in Western Canada.
Achieved its organic certification for the Valleyfield facility from Pro-Cert, an internationally recognized organic certification organization.
Signed a distribution agreement with Mediakos UG haftunsbeschraenkt to be the exclusive distributor of CannibiGold, HemPoland's premium hemp CBD brand, for the German pharmacy market. In addition, the Company launched its Global Strategic Hemp Division.
Entered into a multi-year agreement with Neptune Wellness Solutions Inc. for extraction, formulation and packaging services. As part of the agreement, the Company will have exclusivity on extraction, formulation and packaging of certified organic products within and for the Canadian market.
Investor conference call to discuss second quarter results
Management will host a conference call tomorrow at 9:00 a.m. Eastern Time to discuss the results. Participants may access the call by dialing 416-764-8688 (Toronto) or 1-888-390-0546 (North America); Conference ID 37027015. For those unable to participate on the live call, a playback will be available for one week after the conference call using this URL: https://event.on24.com/wcc/r/2045003/C17F2A331332C2718597218C3F00D7C9.
"Q2 was pivotal for the Company as we began commercial production in the second phase of our Hamilton site and expanded our product line for the Grower's Circle," commented Brian Athaide, CEO of TGOD. "The product quality feedback from the Grower's Circle has been overwhelmingly positive, confirming that patients appreciate having access to premium certified organic cannabis, an underserved segment of the market. With double digit quarterly growth in Europe and construction nearing completion in Canada, the team continues to deliver on our ambitious business plan with executional excellence. We now have our first purchase order from the OCS in hand and look forward to shipping our first recreational sales this week," continued Athaide.
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, 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 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.
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