The Canadian cannabis company said the new division will leverage the company’s expertise in the European hemp CBD market to fuel growth and accelerate the development and commercialization of new products across its network of international partners.
"With the global CBD market expected to hit $22 billion in less than 3 years, it is clear that the segment is drawing substantial consumer demand," said CEO Brian Athaide. "Our team has years of direct hands-on experience in the CBD space and we are excited to use this advantage to execute on a fast-moving market expansion strategy.”
He added: “CBD is a wellness product and has a natural fit with TGOD's certified organic positioning and the large segment of consumers who are increasingly demanding natural and organic products. The time to act is now, and TGOD has the team, the infrastructure and the capital to establish a significant presence in this market."
Shares were up 2.5% at C$3.35 in Toronto, and added 2.3% at US$2.54 in New York.
The Green Organic Dutchman said its European subsidiary HemPoland, which it acquired in 2018, will play a crucial role as its Global Strategic Hemp Division expands into emerging hemp CBD markets.
HemPoland saw its first-quarter revenue grow by nearly 30% quarter-over-quarter as demand for high-quality hemp CBD products in Europe gains momentum, TGOD said. HemPoland has years of experience in cultivating processing, researching as well as the commercial extraction of EU-registered hemp varieties, which are very similar to those currently allowed for cultivation in Canada.
TGOD said HemPoland has already signed a distribution agreement with Mediakos, a leading German pharmaceutical distributor and has had in-depth discussions with co-packers and additional distributors to continue expanding its footprint across Europe.
In other company news, the Toronto-based company said it grew a small test crop of hemp last year, and has successfully renewed the Health Canada licence for the cultivation of a larger crop in 2019 on 158 acres of organic farmland in Southern Ontario. Planting activities are underway and the first harvest is expected within 12 weeks.
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