The Green Organic Dutchman Archives - Green Market Report

Debra BorchardtApril 6, 2022


Long after the markets closed on the east coast, The Green Organic Dutchman Holdings Ltd. (CSE: TGOD) (OTC: TGODF) delivered its financial results for the fourth quarter ending December 31, 2021, and for the full-year 2021. The Green Organic Dutchman reported revenues rose 46% to $11 million in the quarter over last year’s $3.4 million for the same time period. It was a sequential increase of 27%.

The Adjusted EBITDA loss was $3.31 million for the quarter, representing a 40% improvement compared to the third quarter, and was $22.60 million for the Fiscal Year being a 35% improvement of $11.93 million over 2020. The loss from operations for TGOD in the quarter was $5.67 million, an improvement of $3.48 million over the third quarter. Losses from operations were $28.74 million for the Fiscal Year 2021, compared to $40.96 million for the same period in the prior year primarily due to the improvement in revenues and reduction of G&A expenses.

Full-Year Results

For the full year of 2021, TGOD reported revenue rose 146% to $39 million versus 2020’s $15.7 million. The net loss for the year was $43.5 million.

“We closed 2021 with strong momentum as we saw significant growth quarter-over-quarter, reflecting continued execution of our strategic plan as we remain focused on quality, consistency and transparency. We are seeing the early benefit of our enhanced sales strategy which has accelerated sell-through. Our two-prong approach of onboarding key retail chains while having boots on the ground with our dedicated sales force is starting to bear fruit,” said Sean Bovingdon, CEO of TGOD. “We are on track to hit our positive Adjusted EBITDA target in Q2 2022, with continued monthly sales progression from the strong month of December,” added Bovingdon.

Going Concern

The company’s auditors did note that the net loss from operations was $42 million for the year and the accumulated deficit was $487 million. The filing stated, “The Company used cash in operating activities of $18 million (year ended December 31, 2020 – $35 million) resulting primarily from the loss from operations $28 million (year ended December 31, 2020 – $40 million) offset by items not affecting cash such as depreciation, amortization and share-based compensation. The company has insufficient cash on hand to fund its planned operations. The company’s ability to continue as a going concern is dependent upon its ability to generate sufficient revenues and positive cash flows from its operating activities and/or obtain sufficient funding to meet its obligations.”

As of December 31, 2021, the company said it had positive working capital of $25.72 million (December 31, 2020 – $22.0 million negative working capital) primarily due to the repayment of its senior secured first-lien credit facility, modifying its debt under its secured revolving facility to amend the maturity date to June 2023, and reducing accounts payable with the funds received from the Revolver Loan, ATM equity financings and warrant exercises in 2021. The total consolidated cash position was $4.31 million including $0.22 million of restricted cash (December 31, 2020 – $11.83 million of which $0.62 million was restricted cash).

StaffNovember 26, 2021


After the market closed the day before the Thanksgiving holiday, The Green Organic Dutchman  (CSE: TGOD) (US-OTC: TGODF)delivered its unaudited interim financial results for the third quarter ending September 30, 2021, with revenue rising 160% to C$8.6 million from last year’s C$3.3 million. Revenue only increased by 1% sequentially from the second quarter. TGOD also reported a net loss of C$13.9 million for the quarter versus C$75 million for the same period during the prior year. This also represents an improvement of C$18 million of losses from continuing operations since the second quarter where the company recorded a loss from continuing operations of C$32 million.

“We continue to execute on our plan and this management team is working hard to bring the company to profitability with many strategic initiatives”, commented Sean Bovingdon, CEO and interim CFO of TGOD. “TGOD continued at its prior quarter pace as stores worked through inventory loaded in Q2 and new retail distribution points continue to be established. Most notably, the Company launched its Sativa products in Ontario in October 2021 to add one of its top-selling products to the country’s largest retail distribution network, and strategically partnering with Acosta’s direct sales force provides the Company with the opportunity to double our existing distribution footprint quicker than before. Along with the continued support of our lender, selling HemPoland is expected to provide the short-term liquidity to bridge the company to positive operating cash flow in early 2022,” added Bovingdon.

TGOD said it expects to close the sale of HemPoland within the coming months, bringing in expected net proceeds of C$8.3 million (the expected gross proceeds are C$14.54 million, before repaying an approximate C$5.54 million loan between the parent company and the subsidiary and expected transaction costs). Once that happens, TGOD said it plans to repay $4 million of the term portion of the Revolver Loan. The company also said that the remaining proceeds of the sale would provide significant cash and working capital to fund the continued growth and operations of the Canadian business.

Following the close of the quarter, TGOD acquired Galaxie for approximately $21 million. The company said that Galaxie is focused on product innovation, branding, and manufacturing 2.0 products. Galaxie creates and produces a range of products including premium cannabis edibles, infused pre-rolls, flavored and full melt vapes, oils, and solventless products. It also provides manufacturing and product development services to partners across Canada.

“Integrating Galaxie and TGOD will allow for significant efficiencies in the supply chain along with additional sales licence penetration in markets that are complementary to TGOD. Looking to 2022, we expect that key product launches for both TGOD and Galaxie will be key catalysts to grow revenues. Each strategic initiative successfully achieved allows the Company to differentiate itself and we are eager to grow our market share,” said Angus Footman, Chairman of the TGOD Board of Directors.

Kaitlin DomangueJuly 15, 2021


It’s time for your Daily Hit of cannabis financial news for July 15th, 2021. 

On the Site 

Harvest Health Leaves Oregon, Expands Florida Footprint 

Harvest Health & Recreation Inc.  (OTCQX: HRVSF) is done with Utah and expanding its Florida footprint. Harvest said it had completed the divestiture of its cultivation and processing operations in Utah for what it described as an immaterial amount of cash. 

The company said that a local operator bought the cultivation and processing operations located in Ogden, Utah. Following the sale, Harvest no longer has operations in Utah.

The Valens Company Sees Q2 Revenue Increase 

After the markets closed on Wednesday, The Valens Company Inc. (TSX: VLNS) (OTCQX: VLNCF) delivered its second-quarter financial results ending May 31, 2021. Valens reported that its revenue increased 16.1% to $20.5 million versus $17.6 million in the second quarter of 2020. The net loss was $8.6 million in the quarter versus $3.5 million for the same time period in 2020. 

Timbaland, Nas Invest In Cannabis Company Pure Beauty

California-based boutique cannabis brand Pure Beauty reported it has successfully raised $5 million in convertible note fundraising from a consortium of investors led by Gron Ventures, Subversive Capital, Ceres Group Holdings, and notable celebrities including Timbaland, Nas, and director Tom Kuntz, among others.

SAFE Banking Is NOT About Rich People Getting Rich

Despite some chatter, SAFE Banking is not about rich people getting rich. The SAFE Banking Act would address the lack of safety in the cannabis space, as well as provide a pathway for cannabis businesses to establish banking relationships. 

Psychedelic Fund Palo Santo Launches With $35 Million

U.S.-based psychedelic investment fund Palo Santo, has launched with an initial $35 million in capital raised and an active portfolio of 20 companies. The diversified venture fund said in a statement that it is focused on tackling the growing global mental health crisis by investing in innovative psychedelic-based and adjacent therapies that are poised to shape the future of psychiatry and fields beyond.


In Other News

Green Organic Dutchman Announces Q2 Revenue 

The Green Organic Dutchman (TSX: TGOD) (US: TGODF) announced their preliminary unaudited revenue for the second quarter. The company achieved $11.7 million in preliminary unaudited revenue, representing a quarter-over-quarter revenue increase of 30% and a year-over-year 143% increase. 


Neptune Reports Q4 Results 

Canadian cannabinoid extraction company, Neptune,  announced fourth quarter results this afternoon. (TSX: NEPT) The company reported $6.8 million in revenue, representing a 127% increase from the third quarter. 

Neptune reported a fourth quarter gross profit loss of $24.8 million, compared to the profit loss of $1.1 million during the same period in 2020. 

Reported fourth quarter gross profit loss of $24.8 million compared to a reported gross profit loss of $1.1 million in the comparable period in fiscal 2020 and reported fiscal year 2021 gross profit loss of $36.2 million compared to a gross profit loss of $1.8 million for the fiscal year 2020.

Debra BorchardtMay 13, 2021


After the close on Wednesday, The Green Organic Dutchman Holdings Ltd.  (TSX: TGOD) (US: TGODF) reported its unaudited interim financial results for the first quarter ending March 31, 2021. TGOD said its revenue increased 194% year over year to $8.98 million. However revenues decreased 18% sequentially to $10.92 million. The stock was falling by almost 5% to lately sell at 27 cents. 

The company blamed the decline on store restrictions and stay-at-home orders related to COVID-19, combined with some provincial listing mandates being revised at the start of the year. TGOD said it expects growth to rebound for the remainder of 2021 with restrictions anticipated to be lifted as vaccination rates increase and retail stores reopen.

TGOD went on to say that the decrease appears to be within the range of what has been observed and reported by many peer companies to date in 2021. The company still delivered a net income of $12.46 million for the quarter versus a loss of $73.44 million for the same period during the prior year, comprised primarily of the reversal of impairment, and a loss from operations of $5.89 million. On a per-share basis, TGOD recorded a net income of $0.02 compared to a loss of $(0.23) for Q1-2020 and $(0.05) for Q4-2020.

“This quarter’s improving financials demonstrate how we are strengthening TGOD’s foundations by executing our turnaround plan. From monetizing under-utilized assets to streamlining our organizational structure and strengthening our balance sheet, our new leadership team is making great strides towards completing the transformation of TGOD into a profitable and agile organic cannabis producer that stands to benefit from accelerated growth in Canada and abroad with opportunities in GermanyMexicoAustralia, and the United States,” commented Sean Bovingdon, TGOD’s CEO and Interim CFO. “The achievement of net income reflects the positive outlook for our cashflows in relation to our right-sized operations. We look forward to the potential lifting of COVID restrictions as vaccinations increase, which will allow for better access for consumers to our organically grown quality products, that are now consistently achieving THC levels greater than 20%.”

While the company seems to be turning a corner as revenues have mostly risen over last year, the company is still restructuring as it sells assets. On April 29, TGOD provided an update on the potential sale of its Valleyfield Quebec Facility, stating that it had received multiple viable bids. Management said it is currently working through the details of the bids and anticipate  closing by the end of June 2021. The company also recorded a net non-cash reversal of previous impairment of $21.81 million triggered by its Quebec Facility being classified as assets held for sale.

TGOD has also said it may sell or spin-off for an Initial Public Offering of HemPoland, its wholly owned subsidiary, for which it has retained Canaccord Genuity as an advisor, and the potential for mergers and acquisitions in the Canadian cannabis LP sector.

Debra BorchardtMarch 10, 2021


The Green Organic Dutchman Holdings Ltd.  (OTC: TGODF) reports its results after the market close on Tuesday for the fourth quarter and fiscal year ended December 31, 2020. In the fourth-quarter, TGOD said its revenues increased 236% to $10.92 million versus $3.25 million in Q4-2019. This was also a 91% increase over the third-quarter revenue of $5.71 million. The Green Organic Dutchman fourth-quarter net loss improved to $23.68 million versus $144.75 million for the same period in 2019. The company attributed it to a loss from operations and a write-down of $8.65 million in goodwill related to HemPoland.

Annual revenue for fiscal 2020 was $24.51 million versus $11.16 million for 2019. The net loss for the year was $183 million. The company said that the loss was due to a non-cash impairment charge of $120 million on the Canadian cash-generating unit. “The non-cash impairment charges recognized during the period are primarily attributable to the changes in the timing of accessing market demand, as a result of various factors including regulatory changes, production and supply chain impediments, COVID-19 impacts on retail store openings, and, sales price compression across the industry, resulting in a slower revenue ramp-up and growth than originally forecasted by management.”

Lowered Sales Forecast Outlined

In February, TGOD also lowered its estimates for revenues in 2021. The revised Canadian cash flow forecast, from November 1, 2020 to October 31, 2021, assumed that it would achieve $40 million in net sales over the 12-month period versus the $61.5 million previously forecast in the Base Shelf Prospectus. The reasons for the decline were listed below:

  • The company’s forecast assumes between 5% and20% of price compression into 2021 across its various product lines.
  • Pandemic restrictions reduced order levels for the first quarter of 2021. The company believes these measures will hamper the rate of revenue growth in Canada that was expected in the first half of 2021 and impact the timing of market penetration for its new sativa strains and some cannabis 2.0 products.
  • the sales volume forecast consists primarily of product mix premium flower, mainstream Highly Dutch flower, and 2.0 products expected to be sold and includes hash sales, which mix has shifted towards proportionately more mainstream Highly Dutch products that have a lower margin.
  • The company’s latest forecast further reflects the shift in its medical business from sales to patients directly to medical wholesaling, such as the company’s distribution agreement with Medical Cannabis by Shoppers Drug Mart. Medical wholesale generates narrower gross margins compared to direct patient sales.

Permanent CEO Named

The company appointed Sean Bovingdon as Chief Executive Officer (CEO), and member of the board, effective immediately. Mr. Bovingdon had previously been appointed as Interim CEO in November 2020 while continuing to serve as CFO. He will continue as interim CFO while the company undertakes a search for a permanent Chief Financial Officer.

“Sean has been very effective in leading the company through these extremely challenging past few months. He stepped into the interim-CEO position and has demonstrated outstanding leadership,” stated Jeff Scott, Chairman of the board. “Sean has the strategic vision and experience to effectively guide TGOD through its next phase of growth. On behalf of the board of directors, I am very pleased to appoint Sean as CEO of the company.”
Quebec Facility Disaster
The company also said it was seeking to monetize the underutilized assets at its Quebec Facility and had retained the services of a commercial real estate advisor to identify potential buyers for the site, focused on the state-of-the-art hybrid main greenhouse. The transaction could result in a complete or partial sale of the site. The company said it remains committed to maintaining a significant portion of its operations, including all 2.0 product manufacturing, in Quebec, either at a portion of the Quebec Facility or at an alternative Quebec site. The company spent millions building the Valleyfield Quebec facility only to be faced with unloading it as it downsizes.

StaffFebruary 9, 2021


The Green Organic Dutchman Holdings Ltd.  (TGOD) (OTC: TGODF) announced preliminary unaudited revenue for the fourth quarter of 2020 and provided an update to the previously provided twelve-month Canadian revenue forecast for the period of November 1, 2020, to October 31, 2021.

TGOD said that the unaudited consolidated gross revenue for the fourth quarter of 2020 is expected to be approximately $10.9 million, reflecting growth of 235% over the prior year, and an increase of 91% over the third quarter of 2020. The company said it reflected the significant progress and growth achieved in Canadian operations and sales, which accounted for $8.6 million of the fourth quarter 2020 gross revenue total.

“Our increase in revenue reflects the collective efforts of the TGOD team, resulting in improvements in the quality of our flower which is being well received by the market,” said Sean Bovingdon, CFO and Interim CEO of TGOD. “We are also encouraged by the traction we are gaining with our Highly Dutch flower and hash, and look to continue expanding distribution of these along with new premium flower strains and 2.0 product offerings, though we are monitoring the effects that the COVID crisis is having on this progress.”

Lowers Guidance

Despite the encouraging news for the fourth quarter, TGOD wasn’t completely ready to celebrate. The company said that continuing pandemic challenges existed and that many provincial governments were imposing lockdowns and stay-at-home mandates. The company said it believes these measures will hamper the rate of revenue growth in Canada that was expected in the first half of 2021 and impact the timing of market entry for its new sativa strains and some 2.0 products.

In a statement, TGOD said, “Without these conditions, TGOD would expect to be able to meet the Prospectus Forecast, however, TGOD now notes an increased risk in achieving the Prospectus Forecast of $61.5 million net sales for the period November 1, 2020, to October 31, 2021. As such, it expects revenue to grow at a slower rate with the revised Canadian net revenue forecast for that period being in a range of $40 million to $45 million. The company expects that due to these changing conditions, it will not meet its previous expectation of achieving positive monthly Canadian operating cash flow by the end of Q1 2021.”


Debra BorchardtSeptember 28, 2020


The Green Organic Dutchman Holdings Ltd.  (OTC: TGODF) has entered into an agreement with Canaccord Genuity Corp. to purchase, on a bought deal basis an aggregate of 46,316,000 units at a price of $0.24 per Unit for aggregate gross proceeds to the Company of approximately C$11 million. TGOD said it intends to use the proceeds of the Offering for general corporate purposes.

TGOD has also granted Canaccord an option to purchase up to an additional 6,947,400 Units at a price of C$0.24 per Unit which would result in additional proceeds of approximately $1.65 million. The Offering is expected to close on October 22, 2020, and is subject to certain conditions including, but not limited to, the receipt of all necessary regulatory and stock exchange approvals, including the approval of the TSX and the applicable securities regulatory authorities. The stock was lately trading at C$0.29.

Corporate Update

In August, TGOD told investors that problems in the company’s greenhouse led to poor quality flower. “Start-up commissioning and calibrations challenges within the energy center at the company’s Ancaster facility led to inconsistent climate controls in the hybrid greenhouse during the very hot weather in late July and early August which led to several recent August harvests not meeting the Company’s strict premium flower specifications.  As a result, most of the flower from these harvests will now be used for extraction.”

The company went on to say, “Some of the delays experienced by the Company resulted in lower than expected flower availability and a shifting of the national Highly Dutch expansion from Quebec to the balance of the country from August until the latter part of September.” Seemingly as a result of these issues, TGOD appointed Michel Gagné as Vice President, Operations. Gagné brings over 30 years of experience in the food and natural health products industries, having occupied leadership roles at Cargill and Maple Leaf Foods.

Product Pipeline

TGOD said it has introduced multiple 2.0 products during the second quarter, including RIPPLE dissolvables, teas, and vapes.  Based on the popularity of certain SKUs, TGOD said it accelerated its innovation pipeline by signing an expanded licensing agreement with Colorado-based Stillwater Brands to bring their entire RIPPLE product suite to Canada, including RIPPLE Gummies and RIPPLE QuickSticks. The commercialization of RIPPLE Gummies is expected in the fourth quarter.

TGOD also leveraged consumer insights to develop new product formats, including balanced CBD/THC and CBD only versions.  Some of these new products are already in market, with the balance expected to be commercialized during the fourth quarter.

TGOD launched its mainstream brand, Highly Dutch, in Quebec at the end of May.  Given strong sales, the Company looks forward to expanding to the balance of Canada in late September once it can build sufficient finished goods inventory to provide consistent supply to the market. TGOD also started production of Highly Dutch’s 2.0 line-up with concentrates expected to be launched, beginning in Quebec, at the end of September.


A couple of weeks ago, the company said it planned to turn its licensed facility located in Valleyfield, Quebec, into a processing hub to support its expanding product portfolio.  The move would significantly reduce its reliance on third parties. The production of RIPPLE Dissolvable Powders and premium teas is expected to restart this month.  TGOD has also begun production of concentrates and Ripple Gummies in Valleyfield.  Hash should be available for sale at the end of this month under the company’s mainstream brand, Highly Dutch, while Ripple Gummies are planned to launch in the fourth quarter.

“As we conducted a complete review of our operations, we saw the opportunity to leverage Valleyfield and centralize our processing activities for 2.0 products.  Not only does it streamline our supply chain and help absorb the fixed costs of maintaining the site, but it also makes us more agile and provides us with more control over the development and quality of our products,” commented Brian Athaide, CEO of TGOD.  “By developing the in-house capabilities to manufacture multiple product lines, we are well-positioned to capitalize on the increasing popularity of cannabis derivatives such as beverages, chewables, chocolates, concentrates, and teas,” added Athaide.




Debra BorchardtMay 27, 2020


Organic cannabis company The Green Organic Dutchman Holdings Ltd.  (OTC: TGODF) reported revenue of C$3.06 million for the first quarter of 2020 ended March 31, 2020. The company also delivered a net loss of $73.4 million – a staggering amount when the revenues are so small, but it was at least an improvement over the fourth quarter’s net loss of $144 million.

TGOD said that the revenue mostly consisted of hemp-derived product sales in Europe of $2.40 million and sales from cannabis products in Canada of $0.66 million. The meager Canadian sales were blamed on a limited product assortment while the company scaled up its Ancaster cultivation and processing capacity from the prior quarter.

The bulk of the net loss was attributed to a write-down on the book value of the company’s global assets by $55.8 million for impairment as of March 31, 2020. “This reflects the uncertainty created by the pandemic, including the evolution of market demand, the temporary cessation of operating activities in Valleyfield, Québec, and the reduction of activity in Jamaica. This non-cash impairment charge is in line with the announcement on May 14, 2020, and does not impact the Company’s operations or liquidity.”

“I am proud of the resilience demonstrated by everyone on the team in the face of the global pandemic. With safety as our top priority, we have quickly adapted our processes, allowing our operations to continue running smoothly and uninterrupted to ensure that we meet the needs of our patients and consumers,” commented Brian Athaide, CEO of TGOD. “I am also satisfied with the progress we have made on bringing innovative new products to market and expanding distribution. TGOD remains on track to becoming operational cash-flow positive later this year,” added Athaide.


The company’s total operating expenses for the quarter were $16.9 million, but with revenue of only $3 million the company will need to either cut expenses even further or find a way to bring in more revenue. Prior to the end of the first quarter, TGOD was in a very precarious situation. At the end of March, the company had negative working capital of $8,197 (December 31, 2019 – positive working capital of $14,939) and an accumulated deficit of $327,169.

The company says that through its various financing arrangements, that it has enough funds for operations at this time. These deals are as follows:

  • The Company entered into a definitive agreement for a second-lien revolving credit facility (“Revolver Loan”) with a commercial lender for gross proceeds of up to $30 million of which $10 million of the revolving credit facility was funded on April 22, 2020.
  • The Company executed an amendment with the lender under its senior secured credit facility. On April 27, 2020, the Company received an accordion advance of $5 million and issued 1,500,000 warrants exercisable at $0.39 per share exercisable for 36 months to the lender.
  • Also on April 27, 2020, the Company completed a bought deal equity financing of 20,536,700 units at $0.28 for gross proceeds of $5.75 million. Each unit consisted of one common share and one-half common share purchase warrant, with each whole warrant being exercisable at $0.38 for 36 months.

Valleyfield Closed

The company has postponed the startup of its Valleyfield Facility in order to centralize cultivation in Canada at its facility in Ancaster, Ontario. The company said it has temporarily laid off the majority of its employees in Valleyfield with the intention of beginning operations at the Valleyfield Facility later in 2020, should market conditions improve.

Looking Ahead

TGOD said that it expects that the net proceeds, together with cash on hand, amounts available under previously announced credit facilities, and positive cash flow generated from anticipated revenues, will be sufficient to fund operations going forward. TGOD expects revenue growth acceleration to be driven mainly by product innovation. Its first 2.0 product, the TGOD Infuser, launched during March 2020 and quickly became a top-selling SKU within the beverage category; new formats of the popular dissolvable powder will be launching in June 2020


StaffMarch 10, 2020


The Green Organic Dutchman Holdings Ltd. (TSX: TGOD) (US: TGODF) reported its financial results for the fourth quarter and fiscal year ending December 31, 2019. TGOD’s quarterly revenue was $3.25 million and $11.16 million for the year. This revenue consisted of hemp-derived product sales in Europe of $2.56 million for the quarter and $9.88 million for the year. Sales from cannabis products in Canada were only $0.69 million for the quarter and $1.28 million for the year.

The company said that quarterly sales in Canada increased marginally due to limited production from the Ancaster facility. TGOD said it initiated production in its hybrid greenhouse in November 2019, with an eight-week flowering cycle.

Loss Remain Elevated

The company delivered a quarterly net loss of $144.75 million in the quarter and a net loss of $195.75 million for the year including non-cash impairment charges of $127.74 million for the quarter. The charges were related to certain cash-generating assets being built or used in Canada, and the company’s investment in Epican Medicinals. The company said in its statement, “These impairment charges are primarily due to market conditions, which have caused the company to revise its near-term and long-term growth forecasts in the reduced operating facility footprint, and the strategic decision to forgo the expansion of its proposed cultivation activities for export in Jamaica in order to focus on its Canadian operations.”

“While 2019 was a challenging year for the entire sector, we have made significant progress on the operational front and adjusted our construction and operating plan to preserve shareholder capital and in light of changing market conditions,” commented Brian Athaide, CEO of TGOD. “Despite taking impairment charges this quarter, as we continue to evaluate financing options, we note that the value of our assets still far exceeds our liabilities.  With our first 2.0 product, TGOD Infusers, now available, our teas and vapes launching next month, as well as additional launches planned later this year, we anticipate continued sales momentum for the rest of 2020,” continued Athaide.

C-Suite Consolidation

TGOD also said that it had streamlined its leadership structure. The company’s former President, Mr. Csaba Reider, and its former Vice-President of Sales, Mr. Mike Gibbons, departed the organization. Their responsibilities have been consolidated under existing roles.

Athaide continued saying, “As market conditions improve, and should the Company decide to bring additional cultivation zones online which would increase the expected recoverable amount of future cashflows, the non-cash impairment charges may be reconsidered and be reversed as permitted by its accounting framework.

Debra BorchardtNovember 15, 2019


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.

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