The Green Organic Dutchman makes an announcement on their development and stock fall

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The Green Organic Dutchman Provides Update on Credit Financing

The Green Organic Dutchman has suffered a sharp drop in the markets today following the release of a news indicating their difficulty to find regular funding banks which may delay some of their current projects :

TORONTO, Oct. 9, 2019 /CNW/ – The Green Organic Dutchman Holdings Ltd. (the “Company” or “TGOD”) (TSX:TGOD.TO – News) (US:TGODF – News), a leading producer of premium certified organic cannabis, announces that it is reviewing financing alternatives in order to complete construction at its facilities in Ancaster, Ontario and Phase 1a at Valleyfield, Quebec. As previously disclosed, the Company had been engaged in discussions for ordinary course commercial bank facilities and equipment leasing. However, due to changing market conditions, those sources of financing have been unavailable on acceptable terms within the timeframes required, leading the Company to commence a review of additional alternatives. The Company currently has no debt and $56.7 million in cash available in Canada, including $40.2 million in restricted cash allocated to capital expenditures.

Construction at Ancaster is largely complete with all grow rooms licensed by Health Canada and approximately 6 weeks left before substantial completion of the processing facility. The evidence package for this final component is expected to be submitted to Health Canada by the end of November for licensing. The Company will prioritize any financing secured to accelerate commercial production in order to ramp-up revenues. TGOD already has supply agreements in place with Alberta, British Columbia and Ontario, and plans to distribute nationally as production increases in 2020. Portfolio development is underway for Cannabis 2.0 with first phase of product launches scheduled for December 2019, including organic teas and infusers.

The Company may revise the construction schedule for its Ancaster and Valleyfield projects if it is unable to obtain sufficient financing on reasonable terms, within the required timeframe. There can be no assurance that this review will result in the completion of any financing transaction.

Ancaster Highlights

  • Purpose-built facility designed specifically for premium organic cannabis cultivation and processing. 
  • All grow rooms complete and licensed by Health Canada with total annual production capacity for the site at 17,500 kg; first harvest from greenhouse scheduled for Q4 2019. 
  • Existing Health Canada licence for cultivation, sales, oil extraction and oil sales renewed until 2022 
  • EU-GMP certification underway to enable exports to Europe. 
  • Large scale organic cultivation combined with premium pricing expected to generate strong margins. 
  • Constructed to Leadership in Energy and Environmental Design (LEED) standards; certification expected upon completion.

Valleyfield Highlights

  • World’s largest organic cannabis facility at 1,310,000 sq. ft. once completed; designed specifically for premium organic cannabis cultivation. 
  • Phased approach with planned annual production capacity for phase 1a of 65,000 kg; first harvest scheduled by end of Q1 2020. 
  • Total planned capacity of 185,000 kg once all phases are completed. 
  • Access to North America’s lowest power rates combined with automation will enable low-cost production. 
  • Large scale cultivation of premium organic cannabis expected to generate industry-leading margins. 
  • Constructed to Leadership in Energy and Environmental Design (LEED) standards; certification expected upon completion.

This article is written and published by The Cannabis Stock

Disclaimer : The Cannabis Stock wants to promote the cannabis market with the best publication on the market. The Cannabis Stock does not recommend selling or buying any of the company mentioned and is not responsible for any losses that may result.

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