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.”
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.”