Proactive Investors - Run By Investors For Investors
Why invest in TGOD?
The Green Organic Dutchman Holdings Ltd: DEEP DIVE
OVERVIEW

The Green Organic Dutchman blazes a path as it builds a global organic cannabis brand

TGOD has been busy building out its facilities in Ontario, Quebec, and Jamaica and expects to reach combined production of 219,000 kilograms of cannabis around 2021
windmill
OVERVIEW: TGOD The Big Picture
The Green Organic Dutchman is the largest licensed producer of certified organic cannabis in Canada
  • TGOD is the largest certified organic cannabis producer in Canada

  • The company has raised more than C$450 million to fund both its domestic and international plans

  • Operations are focused on medical cannabis markets in Canada, Europe, the Caribbean and Latin America, as well as the adult-use market in Canada

  • Recently received its oil sales licence from Health Canada, which will allow the company to transform its organic raw material into a variety of higher-margin cannabis products


Who is TGOD?

The Green Organic Dutchman Holdings Ltd (TSE:TGOD) (OTCMKTS:TGODF), or TGOD, as it is commonly referred to as, is a certified organic cannabis producer in Canada -- the largest licenced producer, in fact. The company's name is a nod to its roots: established by Dutch founders, the company grows organic cannabis in high-technology, eco-friendly and sustainable facilities.

The company is clear about its aim: to build a leading global organic cannabis brand and 2019 has gotten off to a busy start. 

TGOD's operations are focused on medical cannabis markets in Canada, Europe, the Caribbean and Latin America, as well as the adult-use market in Canada. The company also has organic hemp CBD (cannabidiol) oil operations in Canada, and through its subsidiary, HemPoland, distributes premium hemp CBD oil in the EU.

WATCH: The Green Organic Dutchman opens second store in Jamaica in prime location

TGOD's cannabis is grown in living soil without the use of synthetic pesticides, herbicides or fertilizers. The cannabis is not subject to irradiation, a process that can extend the shelf life of foods by reducing the number of microorganisms that cause spoilage, but can also affect the terpene profile of the cannabis. Terpenes refer to the aromatic organic compounds in the plant responsible for scent and flavor.

A 2018 Hill & Knowlton research study found that 57% of Canadian medical cannabis consumers and 43% of recreational cannabis consumers prefer organic cannabis.

TGOD extracts the cannabis oils found in its products using carbon dioxide, a process that doesn’t involve solvents or additives that can be harmful to the environment. TGOD is certified organic by Pro-Cert and its growing process is certified organic by ECOCERT Canada. Pro-Cert and ECOCERT are two of North America’s most recognized organic certification bodies.

How is it doing?

It's been a gangbuster time for TGOD. The company has been busy building out its facilities in Ontario, Quebec, and Jamaica with more 1,476,000 sq/ft of hybrid greenhouses and processing facilities under construction in Canada and more than 167,000 sq/ft planned internationally across Europe and Jamaica. 

TGOD expects to reach combined production of 219,000 kilograms of cannabis around 2021. 

On the financing side, the company has raised more than C$450 million to fund both its domestic and international plans. 

TGOD recently received its oil sales licence from Health Canada. The move will allow the company to transform its premium quality organic raw material into a variety of higher-margin cannabis products, core to its business plan.

READ: The Green Organic Dutchman receives Health Canada licence to sell cannabis oils

At the company's facility in Ancaster, Ontario, the firm has gotten the green light to operate its greenhouse. In May, the company and city council finalized a settlement, as well as the fact that the local planning appeal tribunal approved the settlement in early May. When the cannabis company’s facilities in Ancaster are completed it will be capable of growing 17,500 kgs of organic cannabis per year.

TGOD's Valleyfield facility is located in Quebec, home to the lowest power rates in Canada, giving the company a competitive advantage. Its Ontario property is designed to include a natural gas power plant, which will reduce costs. 

In January, the company inked an agreement with Queen Genetics/Knud Jepsen A/S in Denmark, which will help the company expand throughout Europe. Last year, the company invested $35 million to acquire Poland-based CBD company HemPoland. In April, it announced encouraging news that HemPoland has received organic certification from EKOGWARANCJA PTRE, the largest certification body supported by the Polish Ministry of Agriculture and Rural Development.

TGOD also opened its second legal cannabis retail store in Jamaica, along with Epican Medicinals. Located on Montego Bay's strip, the flagship location opened in May. 

Inflection points

  • TGOD’s Valleyfield facility is located in Quebec, home to the lowest power rates in Canada, giving the company a competitive advantage

  • The organic cannabis cultivated in the hybrid facilities can be sold at a 34% premium on average in the industry

  • The desire for an organic product is high: A 2018 Hill & Knowlton research study found that 57% of Canadian medical cannabis consumers and 43% of recreational cannabis consumers prefer organic cannabis.

  • The recently received oil sales licence from Health Canada is an important milestone: it will allow the company to transform its organic raw material into a variety of higher-margin cannabis products.

Outlook 

There's no sign of TGOD slowing down anytime soon: it has expanded internationally initially through Jamaica, Denmark, Poland and Mexico and continues to explore other strategic international opportunities. In addition to its international footprint, TGOD also boasts a high production capacity in Canada. 

On the home front, the market looks bright: Ontario and Quebec represent two-thirds of the Canadian population with a potential market valued at C$1.12 to C$2.68 billion.

TGOD's recently received oil sales licence from Health Canada is also key milestone, allowing it to transform its premium organic raw material into a variety of higher-margin cannabis products, allowing it to sell to its medical patient community. 

Contact Katie Lewis at [email protected]

Join Proactive’s Crypto, Blockchain and Cannabis Telegram group here
View full TGOD profile View Profile

The Green Organic Dutchman Holdings Ltd Timeline

Related Articles

FSD Pharma facility
June 11 2019
The indoor hydroponic facility will be optimized for large-scale, medical-grade cannabis production and once complete, is expected to have over 3.9 million sq/ft available for production
cannabis plant
December 14 2018
The Vancouver-based cannabis group services medical and recreational cannabis markets in Canada and internationally
RYAH vaporizer and cartridges
May 16 2019
RYAH is the first cannabis vaporizer that lets users precisely regulate dose and temperature
Copyright © Proactiveinvestors.com, 2019. All Rights Reserved - Proactive Investors North America Inc., Proactive Investors LLC

Market Indices, Commodities and Regulatory News Headlines copyright © Morningstar. Data delayed 15 minutes unless otherwise indicated. Terms of use