- 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
What The Green Organic Dutchman does:
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.
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.
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.
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.
- 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.
Contact Katie Lewis at [email protected]