TGOD (TGOD.T) rewards investor patience

“Growing organic requires patience,” stated Csaba Reider, President of The Green Organic Dutchman (TGOD.T), “We know that our cannabis was worth the wait.”

While other LPs have been harvesting and selling cannabis, TGOD has quietly built a network of organic production facilities.

During pre-production, the big-money boys have continued to invest heavily in TGOD:

  • May 2018 IPO raised gross proceeds of $132.3 million.
  • Completed two bought deals worth $101.2 million.
  • Completed private placements worth $77.6 million.
  • Warrants exercised worth $63.4 million.

Focused on medicinal cannabis markets in Canada, Europe, the Caribbean and Latin America, as well as the Canadian adult-use market – TGOD has a planned capacity of 219,000 kgs and is building 1,643,600 sq. ft. of cultivation and processing facilities across Ontario, Quebec, Jamaica and Denmark.

On March 25, 2019 TGOD announced that sales of certified-organic cannabis have finally commenced with national distribution to The Growers’ Circle – a select group of Canadian patients.

The Growers’ Circle launch is a limited production rollout of the TGOD’s premium product, allowing TGOD to perfect its distribution ahead of its production ramp-up and scaled rollout this year.

“The launch of the Growers’ Circle is another significant moment in TGOD’s commercial story,” stated Brian Athaide, TGOD’s CEO. “Our certified-organic cannabis is a premium experience for patients.”

Three weeks ago TGOD announced that it has received organic certification from Pro-cert Organic Systems, after being certified by ECOCERT, a certification body that verifies production standards through surprise audits, and product analysis.

TGOD’s organic cannabis is grown in living soil without the use of synthetic fertilizers, pesticides or herbicides. The result is a cleaner, premium product for Canadian consumers across both medical and recreational uses.

“In a recent study conducted by Hill & Knowlton,” states TGOD, “over 50% of recreational consumers stated it was important that their cannabis was organic. When the same question was posed to medical patients, that number increased to 63%.”

Last week, TGOD reported financial and operational results for the year ended December 31, 2018.

Q4, 2018 Highlights:

  • Completed the acquisition of HemPoland for approximately $18.6 million.
  • HemPoland revenues of $1.9 million.
  • Accelerated construction spending at Hamilton and Valleyfield sites to $39.5 million.
  • Loss from operations of $18.1 million.

“2018 has been a pivotal year for TGOD,” stated Athaide, “We have raised substantial capital and added exceptionally skilled professionals to both management and our Board.”

Fully funded for its domestic and international strategies; TGOD has no plans to return to the market for additional capital.

Aurora Cannabis (ACB.T) has invested approximately $78 million in TGOD for a 20% off-take agreement on Canadian production.

TGOD is now shipping its Unite Organic strain to over 200 medical patients across Canada.

TGOD Growers’ Circle members will receive a state-of-the-art online and app experience that provides timely information on individual medical needs.

“We have spent months talking with consumers about their preferred cannabis experience,” stated Andrew Pollock, V.P of Marketing for TGOD. “We believe that through our website, the experience – from signup to follow-up, to ongoing care – will be the finest in the industry.”

TGOD will be expanding the list of Growers’ Circle members as more supply comes online, as well as becoming a significant presence in the recreational market.

“Why is patience so important?” asked Brazilian novelist Paulo Coelho, “Because it makes us pay attention.”

TGOD shareholders have been paying attention.

Despite the slow-to-production story, the share price of TGOD has almost doubled in 2019.

Full Disclosure:  TGOD is an Equity Guru marketing client, and we own the stock.

Disclaimer: ALWAYS DO YOUR OWN RESEARCH and consult with a licensed investment professional before making an investment. This communication should not be used as a basis for making any investment.

The Green Organic Dutchman

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