The Green Organic Dutchman Holdings Ltd (TSX:TGOD)(OTCQX:TGODF) announced Thursday it inked a royalty-bearing commercial sublicense with tech company EnWave (TSX:ENW) and fellow cannabis company Tilray Inc (NASDAQ:TLRY).
Shares of TGOD were up about 8.5% to C$2.67 by Wednesday’s close while EnWave shares were down slightly to C$1.30, but neither had not begun trading yet Thursday morning.
Tilray shares slipped around 1% to US$69.69 in Thursday pre-market trading.
EnWave has developed a method for dehydrating organic materials known as Radiant Energy Vacuum. Its technology can be applied to drying and decontaminating cannabis to streamline the harvesting process.
"We are incredibly excited to utilize this proprietary and advanced dehydration technology, which will promote consistency in the manufacturing of our premium organic products, improve space efficiency by reducing the need for drying rooms and quicken TGOD's time from harvest to sale," said TGOD CEO Brian Athaide in the company’s press release.
EnWave named Tilray its licensed partner in October 2017, granting Tilray the exclusive right to use and sub-license the technology in Canada.
As per the deal, TGOD, one of Canada’s few organic cannabis producers, will have access to the technology in its Canadian operations and share the royalties with Tilray.
TGOD has agreed to purchase a 60kW commercial REV machine to begin commercial production.
The company has been building out its facilities in Ontario and Quebec, as well as in Jamaica, in order to produce organic cannabis on a large scale, expecting its facilities to reach combined production of 170,000 kilograms sometime in 2020.
Contact Lenore Fedow at [email protected]