The Green Organic Dutchman Archives - Green Market Report

Debra BorchardtDebra BorchardtNovember 15, 2019
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3min2630

The Green Organic Dutchman (OTCQX: TGODF)saw its shares plunge by over 9% to lately trade at 63 cents after the company reported its third-quarter earnings following the market close on Thursday. The company delivered revenue of C$2.53 million, which missed estimates by C$1.77M. TGOD also delivered a net loss of $20.1 million for the quarter, of which $4.3 million was related to non-cash stock-based compensation, depreciation and amortization.

The company said it has “reorganized to reduce general and administrative expenses by approximately $3 million per quarter starting in Q1-2020 on a path towards positive operating cash flow by the end of Q2 2020.”

“Q3 marked TGOD’s entry into the recreational cannabis market with a small pilot in Ontario. We were thrilled to witness such positive feedback on product quality and packaging from retailers and consumers across the province.  Based on the initial response, demand for high-quality flower is strong and TGOD is well-positioned to capture the premium organic segment which is significantly underserved,” commented Brian Athaide, CEO of TGOD. “Despite the challenging market conditions in Canada, TGOD has an opportunity to be one of the first cash flow positive cannabis companies as early as Q2 2020. We rightsized our production and our first hybrid greenhouse is being commissioned, allowing us to produce at optimal levels while avoiding excess inventory or incurring unnecessarily high operating expenses.  Our first harvest from the Ancaster hybrid greenhouse is expected in December, which will enhance our current product line and enable TGOD’s first material revenues in Canada in Q1 2020 which is very exciting,” continued Athaide.

HemPoland,  the company’s wholly-owned subsidiary, saw a decrease in revenues in the third quarter to $2 million from $2.9 million in the second quarter due to fewer low margin bulk CBD extract sales. However, TGOD did see an increase in the number of sales of its high margin branded CannabiGold and private label products, resulting in gross margin of 80%, up from 69%.

TGOD said that it signed arrangements for up to $103 million in funding to be used mainly as bridge financing until TGOD becomes cash flow positive which is expected by the end of Q2 2020. According to the filing, “As of September 30, 2019, the company had working capital of $24 million and an accumulated deficit of $109 million.” The company came under fire for saying it needed more money to complete its facility projects after having said in investment presentations that all projects were fully funded.

The company has a conference call scheduled for Friday morning.


William SumnerWilliam SumnerOctober 9, 2019
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4min3240

It’s time for your Daily Hit of cannabis financial news for October 9, 2019.

On the Site

The Green Organic Dutchman

The Green Organic Dutchman Holdings Ltd. (TSX: TGOD) (US: TGODF) is looking for a new source of funding to complete construction at its Ancaster, Ontario facility. The company had planned on using a traditional commercial bank facility but said that as market conditions have changed, the terms were no longer acceptable.

Kosher Cannabis For The Holidays

Can cannabis be kosher? The short answer is yes, at least if you smoke it. According to Chabad.org, “The answer really depends on how you define the word “kosher. Most narrowly defined, kosher means that it contains no ingredients that were from non-kosher animals, milk and meat, or other substances proscribed by Jewish law.”

Charlotte’s Web Holdings

Charlotte’s Web Holdings, Inc. (TSX: CWEB) (OTCQX: CWBHF) announced today that it is partnering with the data and measurement firm Nielsen (NYSE: NSLN) to provide analytical coverage of the U.S. hemp-CBD retail market. Recently, Nielsen has been dipping its toes into the hemp and cannabis space by entering into strategic partnerships with cannabis-focused data and analytics firms like Headset and by developing a suite of cannabis measurement capabilities

In Other News

Innovative Industrial Properties

Innovative Industrial Properties, Inc. (IIP) has closed on an acquisition of a 156,000 square foot property in Warren, Michigan for $19 million. Following the closing of the acquisition, the company has also entered a long-term, triple-net lease agreement with LivWell Michigan, LLC, a licensee of LivWell Holdings, Inc. LivWell will make approximately $42 million worth of improvements on the property and IIP has agreed to provide reimbursement of up to $23.0 million.

Zelda Therapeutics

Zelda Therapeutics Limited (ASX: ZLD) (OTCQB: ZLDAF) announced a proposed merger with Ilera Therapeutics LLC, which entered into a strategic partnership with Zelda in March of this year. Under the proposal, Zelda would acquire 100% of Ilera Therapeutics through an all-scrip transaction. If the proposed merger goes through, the companies will rebrand as  Zelira Therapeutics Limited. “The merger will create one of the world’s leading medicinal cannabis companies with a rich pipeline of clinically validated products under development and unique access to the world’s largest and fastest growing cannabis markets,” says Zelda Therapeutics Chairman Harry Karelis.

New Frontier Data

New Frontier Data has reached an agreement to acquire Zefyr Inc. , a cannabis-focused data discovery and profiling platform, for $10 million. Zefyr acquires data from various sources and ingests, normalizes, analyzes, and deploys data and associated informational solutions through artificial intelligence. “Today, as mature market entrants move beyond examining investment risks and opportunities to connecting with the cannabis consumer, Zefyr enables us to expand and deepen our data services to support these evolving cannabis data needs,” said New Frontier Data Founder and CEO Giadha Aguirre de Carcer.


Debra BorchardtDebra BorchardtOctober 9, 2019
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4min13541

The Green Organic Dutchman Holdings Ltd. (TSX: TGOD) (US: TGODF) is looking for a new source of funding to complete construction at its Ancaster, Ontario facility. The company had planned on using a traditional commercial bank facility but said that as market conditions have changed, the terms were no longer acceptable.

TGOD has no debt and $56.7 million in cash available in Canada, which includes $40.2 million in restricted cash allocated to capital expenditures. If the company doesn’t get sufficient financing on reasonable terms within the required timeframe, it said it may have to revise the construction schedule for Ancaster and its Valleyfield project. TGOD also warned that this financing review may not result in an acceptable solution.

The stock was lately trading at C$1.73, down from its 52-week high of $6.61. Capital 10X (TGOD is a consulting client) recently initiated coverage on organic cannabis and forecast a rise in value for the stock by 377%. The analyst wrote, “Ultimately, we think TGOD is the best positioned of the organic growers. When we looked at the organic landscape, TGOD has the lowest operational risk, along with big potential upside. TGOD has a longer track record of execution (construction, branding, and cultivation) than any of its publicly traded peers, decreasing the risk they fail to grow at scale. TGOD also is aiming for true scale, with ambitions to not only be the largest organic grower but one of the largest growers period.”  

Construction Update

“We are doing something no other producer has done before, growing premium certified organic cannabis at scale.  By leveraging our proprietary growing methods, purpose-built facilities and industry-leading horticultural team, we are creating a wide economic moat within the premium organic segment,” commented Brian Athaide, CEO of TGOD.  “We are extremely proud to showcase the hard work that went into designing and building these state-of-the-art facilities as well as our cannabis 2.0 portfolio.”

The company said that 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. In a statement, the company said, “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 AlbertaBritish 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 took analysts for a tour at the Hamilton and Valleyfield facilities a few weeks ago. Valleyfield’s first phase on track to be completed in Q4 with the first harvest in early 2020, taking annual production capacity for the site to 65,000 kg. The Hamilton hybrid greenhouse now completed; all rooms licensed by Health Canada, bringing total annual production capacity for the site to 17,500 kg.

 


Debra BorchardtDebra BorchardtSeptember 4, 2019
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4min7750

Aurora Cannabis Inc.  (NYSE | TSX: ACB) sold off its final 28,833,334 shares of The Green Organic Dutchman Holdings Ltd (CSE: TGOD) (OTC: TGODF) at a price of $3.00 per share for gross proceeds of roughly $86.5 million. The stock was lately trading at C$3.51 on the CSE and $2.63 on the OTC. The share represent 10.5% of the issued and outstanding shares of TGOD.

“Aurora has a broad portfolio of strategic investments that allow us to participate in opportunities throughout the cannabis sector, while providing the company with non-dilutive access to capital,” said Terry Booth, CEO of Aurora. “We evaluate our investment portfolio on a regular basis to make sure it continues to align with our investment strategy and corporate priorities. When we acquired Whistler Medical Marijuana Corporation – an iconic and premium organic cannabis producer – our interest in TGOD became less important to our core strategy. Our return on our TGOD investment is significant and will add non-dilutive capital and further enhance our strategy to remain a dominant force in the global cannabis industry.”

The investment turned out to be a winner for Aurora. The company said that the sale represented an approximate 50% internal rate of return for the company. Aurora said it no longer holds any shares of TGOD, but it does continue to hold warrants to purchase 16,666,667 shares of TGOD.

TGOD stock got a lift on Tuesday after announcing it got approval from Health Canada to expand operations into its new hybrid greenhouse located in Hamilton, Ontario. The new facility is the third phase of TGOD’s Hamilton site, measuring 166,000 square feet with an annual production capacity of 17,500 kgs of premium organic cannabis.

Mo Money

Selling the TGOD shares was a quick way to bring money to the company’s coffers. In June, Stifel initiated coverage of Aurora with a Hold rating. The analyst W. Andrew Carter wrote, “Aurora Cannabis’ near-term growth strategy hinges heavily on its ability to return to the capital markets. The company has filed a base shelf prospectus of $750 million (roughly C$1 billion) and in conjunction with its 3Q19 earnings release, announced a supplement that included a $400 million of “at-the-market” distributions over a period of up to 25 months.”

At that time the stock was trading at C$10.65 and the analyst had a target price of C$10.00. The stock was lately trading at C$7.57.

The analyst went on to add, ” We question if Aurora has fully embraced the level of investment necessary to sustain a leading position in the Canadian market, and we believe the company could be challenged without the expertise of a consumer partner with a vested interest in the success of Aurora.”


William SumnerWilliam SumnerAugust 14, 2019
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6min5030

It’s time for your Daily Hit of cannabis financial news for August 14, 2019.

On the Site

Zenabis Global

Zenabis Global Inc. (TSX: ZENA) (OTC: ZBISF) reported that its second-quarter net revenue rose 78% to $25 million from last year’s $4.1 million for the period ending June 30, 2019. The company said that the results were achieved “despite being negatively impacted by temporary price reductions on inventory sold to provincial counterparties designed to help Zenabis to capture a larger share of the recreational cannabis market.”

Charlotte’s Web

Charlotte’s Web Holdings, Inc. (TSX: CWEB)(OTCQX: CWBHF), a producer of whole-plant CBD hemp extract products, reported its financial results for the second quarter ending June 30, 2019. The company’s revenue grew 45% to $25 million over last year’s $17.2 million for the same time period. The net income fell to $2.2 million from last year’s $3.7 million.

Who’s Really Buying CBD? And Why?

If you’re asking yourself who’s buying CBD products, just take a stroll to your local grocery store and mosey over to the vitamins and supplements section. Prepare to be overwhelmed by the thousands of nutraceutical “wellness” products filling the shelves – everything from melatonin chocolates for sleep-aid to echinacea for immune support – and yes, very recently products containing the compound that’s outshined Beyonce in popularity, CBD.

In Other News

Jushi Holdings

Today, Jushi Holdings Inc. released its financial results for the second quarter. Year-over-year, revenue for the quarter increased to approximately $200,000, and the gross profit was roughly $200,000. The net loss increased to $11.8 million, up considerably from $100,000 in the same period of the previous year. Despite low earnings and high losses, the company has a net working capital of $95.4 million, of which $86.7 million is in cash.

Sundial Growers

Sundial Growers Inc. (NADAQ: SNDL) has released their financial results for the second quarter. Gross revenue was $20.3 million. The net loss declined from $16.6 million in the first quarter to $12.4 million. Adjusted EBITDA was a loss of $500,000, up from a loss of $5.5 million. “Sundial accomplished great things this past quarter and our team’s solid execution across key areas of our business resulted in significant revenue growth,” said Torsten Kuenzlen, CEO of Sundial. “We are very confident in our go-to-market strategy, our strengthened balance sheet and our ability to execute upon organic growth opportunities.”

The Green Organic Dutchman

After the close of the market yesterday, The Green Organic Dutchman Holdings Ltd. (TSE: TGOD) reported their financial results for the second quarter. Revenue rose 20% over the previous quarter to $2.9 million. The net loss rose from $8.5 million in the previous year to $16.6 million.  “Q2 was pivotal for the Company as we began commercial production in the second phase of our Hamilton site and expanded our product line for the Grower’s Circle,” commented Brian Athaide, CEO of The Green Organic Dutchman.

Helix TCS

Today, Helix TCS, Inc. (OTCQB: HLIX), announced the release of its financial results for the second quarter. Quarterly revenue was $3.9 million. The gross profit was $1.9 million, with a gross margin of 49%. “We feel that we are still deeply undervalued due to our focus on execution as opposed to publicity, and are working to tell the simple truth of our constantly improving business and strong results,” said Helix TCS CEO and Executive Chairman, Zachary L. Venegas.

HempFusion

HempFusion, Inc. closed a brokered and non-brokered private placements of a total of 28,800,000 units of the Company at a price of US$1.25 per Unit for gross proceeds of US$36 million. The brokered portion of the Offering consisted of the sale of 26,227,650 Units for aggregate gross proceeds of US$32,784,563 and was completed by a syndicate of agents led by Canaccord Genuity Corp. and including Haywood Securities Inc. and PI Financial Corp. Due to demand, the Offering was upsized from US$20 million to US$36 million.


William SumnerWilliam SumnerAugust 7, 2019
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6min4470

It’s time for your Daily Hit of cannabis financial news for August 7, 2019.

On the Site

LeafLink

Online cannabis wholesale marketplace, LeafLink announced the completion of a $35M Series B round of funding. The round was led by Thrive Capital. Current investors Nosara Capital, Lerer Hippeau, Wisdom VC, and Thought Into Action Ventures also participated in the round alongside L2 Ventures.

Columbia Care

Columbia Care Inc. (NEO: CCHW) (OTCQX: CCHWF) reported financial results for its second quarter ending June 30, 2019, with revenue increasing 102% to $19.3 million and 50% sequentially. The net losses grew to $33.7 million versus $4.2 million for the same time period in the previous year. The company blamed the losses on the “recognition of listing fee and share-based compensation expense, as well as higher operating expenses related to the company’s expansion in both new and existing markets.”

The Green Organic Dutchman

The Green Organic Dutchman Holdings Ltd. (TGOD)  (TSX: TGOD) (US: TGODF) has submitted an application to list its common shares on the NASDAQ according to a statement from the company. “This is an important step in the growth of TGOD, one that will broaden our investor base and increase access for international investors as we build the leading global organic cannabis brand”, commented Brian Athaide, CEO of TGOD.

Guest Post: The Legal Status of CBD Oil in Italy

The issue of legalisation of cannabis and its derived products has been under discussion for decades in Italy. However, with each passing year, the legal status of cannabis and CBD products only gets murkier.

In Other News

Pasha Brands

Pasha Brands Ltd. (CSE: CRFT) (OTC:CRFTF) (FSE:ZZD) announced that it has secured eligibility from the Depository Trust Company (DTC) to list its shares on the OTC Markets. “We are very pleased to have obtained DTC eligibility,” said Patrick Brauckmann , Executive Chairman of Pasha Brands. “This status will make the process of trading our stock in the United States much easier. We expect that this will make our shares available to a larger percentage of the investment market, which should improve the liquidity of our shares and therefore benefit Pasha and our shareholders.”

GW Pharmaceuticals

After the market close yesterday, GW Pharmaceuticals (NASDAQ: GWPH) announced that it has released its financial results for the second quarter, ending on June 30, 2019. Revenue for the quarter was $72 million, the vast majority of which was generated from sales of CBD-based drug Epidiolex ($68.4 million). Net income was $79.7 million, up from a net loss of $84 million in the same period of the previous year. “We are pleased to report a strong second quarter of sales of Epidiolex in the US, reflecting high demand by US patients, increased prescribing by healthcare providers, and ongoing progress in payor coverage determinations,” said GW CEO Justin Gover. “In Europe, we are pleased to have recently received the positive opinion from the CHMP which clears the way for an expected approval in October.”

CV Sciences

CV Sciences, Inc. (OTCQB:CVSI) announced the release of its financial results for the second quarter, ending on June 30, 2019. Revenue for the quarter was $16.9 million, representing an increase of 36% over the same period in the previous year. The gross margin improved slightly, rising from 70.8% to 70.9%. Operating income was $1.3 million. “We remain highly confident in the long-term growth of hemp-based CBD and will continue to lead the industry in quality, innovation and both regulatory adherence and support as the market develops,” commented CV Sciences CEO Joseph Dowling.


Debra BorchardtDebra BorchardtAugust 7, 2019
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3min8950

The Green Organic Dutchman Holdings Ltd. (TGOD)  (TSX: TGOD) (US: TGODF) has submitted an application to list its common shares on the NASDAQ according to a statement from the company.

“This is an important step in the growth of TGOD, one that will broaden our investor base and increase access for international investors as we build the leading global organic cannabis brand”, commented Brian Athaide, CEO of TGOD. “Our team remains focused on executing our business plan and creating value for our shareholders.”

The listing of TGOD’s shares on the NASDAQ will be subject to a number of regulatory requirements, including registration of the common shares under the U.S. Securities Exchange Act of 1934 and a determination by the NASDAQ that TGOD has satisfied all applicable listing requirements.  Subject to approval for listing, the common shares will continue to trade on the TSX Exchange under ‘TGOD’, which is also the reserved symbol for the NASDAQ application.

In May, the company reported its first-quarter financial results for the period ending on March 31, 2019. Quarter-over-quarter revenue rose by 28% to $2.4 million. Much of that revenue was generated from the recently acquired HemPoland. The company experienced a net loss of $14.1 million, down $4 million from the previous quarter. Management attributes these losses to continued preparation for commercial cannabis production and its preparations to enter the adult-use market next year.

The company is on schedule with the construction of production facilities in Hamilton, Ontario and Valleyfield, Quebec. Approximately $46.9 million in investment is dedicated to the sites’ construction.

Close to the end of the quarter, TGOD launched Growers Circle, which sells medical cannabis directly to patients in Canada. The company did not record any revenue from the venture in the first quarter as the bulk of orders were shipped in April. However, revenues should appear on the financial results for the second quarter.


William SumnerWilliam SumnerMay 15, 2019
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4min4650

It’s time for your Daily Hit of cannabis financial news for May 15, 2019.

On the Site

CNBC’s Tim Seymour Goes One On One With SLANG’s CEO Peter Miller

Miller talks about the early days of cannabis legalization in Canada, the fast growth of SLANG and new products being launched by Firefly. Watch Now

Illinois’ Cannabis Rules Dissected at the Green Market Summit

The Governor of Illinois recently released details of the state’s proposed rules for adult-use cannabis. The Green Market Summit had organized a panel that took place just days after the announcement in Chicago. Watch Now

The Green Organic Dutchman

After the markets closed yesterday, The Green Organic Dutchman Holdings Ltd. (TSX: TGOD) (OTCMKTS: TGODF) reported their first quarter financial results for the period ending on March 31, 2019. Quarter-over-quarter revenue rose by 28% to $2.4 million. Much of that revenue was generated from the recently acquired HemPoland. The company experienced a net loss of $14.1 million.

In Other News

Aurora Cannabis

Late yesterday, Aurora Cannabis Inc. (NYSE: ACB) (TSX: ACB) announced their third quarter financial results for the period ending on March 31, 2019. Net revenue was $65.14 million, up from $54.17 million in the previous quarter. Adjusted EBITDA was $36.6 million, down from $45.52 million in the previous quarter. The company incurred a loss of $158.35 million.

Cannara Biotech

Cannara Biotech (CSE: LOVE) (OTCQB: CNBTF) announced today that it has commenced trading on the OTCQB® Venture Market under the symbol “CNBTF”. “Cannabis and hemp-CBD markets are global markets, with customers, vendors and investors domiciled across all major industrial nations,” said Zohar Krivorot, President and CEO of Cannara. ” Having a listing in the U.S. not only provides easier access for U.S. and international investors to our story, it supports our mission of being a North American premium provider of health and wellness products in large and growing product categories.”

1933 Industries

1933 Industries Inc. (CSE: TGIF) (OTCQX: TGIFF) announced that its subsidiary, Alternative Medicine Association, has completed a sale and lease back for its cannabis cultivation facility in Las Vegas, Nevada. The purchase price for the transaction was $10.45 million, which the company has received minus a $500,000 hold back to be released upon the completion of the facility and issuance of permanent occupancy permits, and a $250,000 hold back to be released upon issuance of state and local permitting for the facility. The transaction included a lease-back agreement for 10 years, with an option to renew for two additional five year periods.

 


William SumnerWilliam SumnerMay 15, 2019
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3min7570

After the markets closed yesterday, The Green Organic Dutchman Holdings Ltd. (TSX: TGOD) (OTCMKTS: TGODF) reported their first quarter financial results for the period ending on March 31, 2019.

Quarter-over-quarter revenue rose by 28% to $2.4 million. Much of that revenue was generated from the recently acquired HemPoland. The company experienced a net loss of $14.1 million, down $4 million from the previous quarter. Management attributes these losses to continued preparation for commercial cannabis production and its preparations to enter the adult-use market next year.

Quarterly Highlights

The company is on schedule with the construction of production facilities in Hamilton, Ontario and Valleyfield, Quebec. Approximately $46.9 million in investment is dedicated to the sites’ construction.

Close to the end of the quarter, TGOD launched Growers Circle, which sells medical cannabis directly to patients in Canada. The company did not record any revenue from the venture in the first quarter as the bulk of orders were shipped in April. However, revenues should appear on the financial results for the second quarter.

As of March 31, 2019, the company has a balance sheet of $224.4 million of cash and restricted cash, which will be used to fund the expansion of production facilities, operating costs, and international growth.

On May 15, 2019, TGOD management held a conference call to go over in detail the company’s financial results, and playback of the call can be listened to here for up to one week.

“Q1 results are continued proof that we are delivering on our business plan with executional excellence,” said Brian Athaide, CEO of TGOD. “The Company is now bringing to market high quality, premium certified organic cannabis flower and hemp-derived CBD oils. With the construction of the Hamilton facility nearing completion and our flagship Valleyfield facility on track, TGOD will soon be able to sell at scale in Canada and rapidly grow the organic segment that is currently being significantly under-served by the market.”


Video StaffVideo StaffSeptember 19, 2018

1min16240

At last week’s Green Market Summit in New York City, TheStreet’s founder and CNBC star Jim Cramer interviewed The Green Organic Dutchman’s (TGODF) Chief Executive Officer Brian Athaide in a keynote address. Cramer was specifically interested in Athaide’s background at Procter & Gamble (PG) and how that experience would translate to the cannabis industry.

Cramer and Athaide also discussed cannabis company valuations and whether they were too rich. The Constellation Brands (STZ) investment into Canopy Growth Corp. (CGC) was also discussed. Athaide told Cramer that he didn’t think Constellation overpaid at all. He thinks they actually got a good deal. This is a fascinating interview that is well worth watching.

Video editing was performed by Small Cap Nation.



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The Green Market Report focuses on the financial news of the rapidly growing cannabis industry. Our target approach filters out the daily noise and does a deep dive into the financial, business and economic side of the cannabis industry. Our team is cultivating the industry’s critical news into one source and providing open source insights and data analysis


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