The Green Organic Dutchman Holdings Ltd (TSX:TGOD) (OTCQX:TGODF) announced Friday that it is widening its reach in Europe by forging a definitive agreement with Danish cannabis company Knud Jepsen to set up two 50/50 joint ventures.
A production joint venture (JV) has been arranged to produce commercial cannabis and cannabis oils while a genetics JV will handle the development and patenting of cannabis genetics.
The pair of joint ventures will be set up in Denmark and the goal is to expand the production JV to other parts of Europe.
The Green Organic Dutchman will have the exclusive right to all cannabis-related production from the production JV, according to the terms of the agreement. The production JV will also have exclusive access to the intellectual property surrounding the cannabis genetics developed as part of the genetics JV.
Knud Jepsen, will, in turn, be responsible for the daily operations of the JV.
For its part, The Green Organic Dutchman is looking to take advantage of Knud Jepsen’s years of horticulture experience and research & development to accelerate its commercial operations in Denmark and throughout Europe.
The first phase of the JV will start with a Hinnerup, Denmark-based 2,500 kg pilot program and eventually shift to various lower-cost production jurisdictions throughout Europe.
"This JV is incredibly important to furthering TGOD's presence in Europe," said Brian Athaide, CEO of TGOD in a statement. "As we roll out multiple phases of our JV and plan to increase the partnership to multiple countries across Europe, leveraging Knud Jepsen's expertise as operators, and our expertise in cannabis will be critical to TGOD's expansion throughout the continent,” he added.
Founded in 1939, Denmark-based Knud Jepsen has 80 years of experience in all areas of horticulture ranging from genetics and breeding to international partnerships. In addition to Denmark, Knud Jepsen operates an 880,000 square foot flower and young plant production facility in Turkey, and a 700,000 sq. ft. facility in Vietnam specializing in producing cuttings belonging to the Queen Genetic assortment.
Headquartered in Toronto, The Green Organic Dutchman boasts operations focused on medical cannabis in Canada, Europe, the Caribbean and Latin America, as well as the Canadian recreational market.
The Green Organic Dutchman shares closed 14.4% higher on Thursday to hit C$3.49.
Contact Ellen Kelleher at email@example.com