The Green Organic Dutchman Holdings Ltd (TSE:TGOD) (OTCMKTS:TGODF) announced Wednesday that it has inked a pact with Neptune Wellness Solutions Inc (NASDAQ:NEPT) (TSX: NEPT) for extraction, formulation and packaging of certified organic products for the Canadian market.
As part of the multi-year agreement, Toronto-based Green Organic Dutchman will give more than 230,000 kilograms of cannabis and hemp biomass to Neptune to process and transform into premium certified organic consumer wellness products. The deal is the largest for a processor in the industry to date, said the company.
The contract between TGOD and Neptune covers a period of three years and is expected to be back-end loaded with the first year accounting for approximately 20% of the total value. It also marks a significant milestone for cannabis manufacturing in Quebec, creating high value jobs, complementing TGOD's large investment in Valleyfield where the company is nearing the completion of the first phase of what will become the world's largest organic cannabis growing facility at over 1.3 million square feet.
"With this agreement, Neptune becomes a key partner for TGOD; we have been impressed with their commitment to innovation and excellence in every aspect of their business,” said Green Organic Dutchman CEO Brian Athaide. “Their unique capabilities in terms of extraction, formulation and packaging were decisive factors in our selection process."
Athaide said the deal is “significant” not only because it enables the grower to start manufacturing certified organic consumer wellness products at scale, but also because of the “large and sustained economic impact” it will have in Quebec where TGOD is building the world's largest organic cannabis production facility.
TGOD will work closely with Neptune's team to assist them in obtaining their organic certification. To facilitate the certification process, Neptune will create a space to house and operate TGOD's proprietary and/or licenced technologies. In addition, Neptune is in the process of achieving the EU-GMP certification, allowing TGOD to export products to other jurisdictions as laws and regulations permit.
"We are excited to work with TGOD, an innovation driven company focused on value added and differentiated products," said Neptune Wellness CEO Jim Hamilton. "The ambitions of each company are well aligned, and we look forward to collaborating with TGOD, supporting their growth with new product forms."
Michel Timperio, who is president of Neptune's cannabis division, said TGOD's commitment to organic products and sustainability is "inspiring."
“Neptune is proud to become a part of their success story,” said Timperio. “We are delighted that TGOD has placed its trust in our people and our technology with the largest deal in the industry to date."
Established by Dutch founders, the Green Organic Dutchman grows organic cannabis in high-technology, eco-friendly and sustainable facilities. The cannabis is grown naturally in Canadian soil without the use of synthetic pesticides, herbicides or fertilizers and wrapped in eco-friendly packaging.
Contact Uttara Choudhury at [email protected]veinvestors.com