CBD has since blown up into a multi-billion dollar industry seemingly overnight. In 2017 and 2018, the cannabinoid has been synthesized and added to everything from food to beauty products.
If the hype is to be believed it cures everything from anxiety and depression to insomnia.
Actually, as a long time insomniac I can attest to its effectiveness on that last front. If I take a little CBD juice under my tongue about an hour before I flop facedown in bed, I’m asleep all night.
That’s enough for me.
So maybe companies like The Green Organic Dutchman (TGOD.T), who launched their global strategic hemp division today, are onto something.
Probably a fair assessment given the often cited statistic from the Brightfield Group that the global CBD market is on track to hitting $22 billion in less than three years. TGOD will use this new division to develop and market new products in time to take advantage of the incline, so they can get on this train now and ride it up to profitability.
TGOD’s acquired HemPoland last summer and brought a host of intellectual property, and insight into the operation of a global strategic hemp division. HemPoland’s Q1 revenue grew 30% as European demand for CBD products grew.
Here are some of the highlights from the HemPoland deal.
- Acquisition cost of $10.4 million & 1.9 million TGOD shares
- $13.8 million cash for rapid European expansion
- Performance-based incentives up to $15.8 million for delivery of $42.1 million of EBITDA in fiscal 2021
- Distribution channels to over 750 million people
- Sales in 700 locations across 13 countries
- Premier selling CBD oil brand “Cannabigold”, a product leader in the EU
- 32,000 kgs of dried flower production from 1,250 acres of cultivation
- Organic brand with unique IP
While other companies are getting their CBD divisions fired up, HemPoland has been at this for years.
TGOD expects to use their experience in both research and development and efficient commercial extraction techniques to gain a competitive advantage.
In other news, the company’s wholly owned subsidiary The Green Organic Hemp grew a small test crop last year, successfully renewed their license, and intends to cultivate a larger crop in 2019 on 158 acres of organic farmland in Southern Ontario.
The future for TGOD includes the introduction of vapes, beverages, edibles and topicals later on this year.
Shares rose $0.09 to close at $3.36.
TGOD has 275,257,176 shares issued and outstanding and a market cap of $900 million.
—Joseph Morton
Full Disclosure: The Green Organic Dutchman is an Equity.Guru marketing client.
