The Green Organic Dutchman (TGOD.T) applies for Nasdaq listing; stock surges

The Green Organic Dutchman (TGOD.T), one of Canada’s leading premium cannabis growers, is looking to broaden its investor base with a Nasdaq exchange listing.

On Wednesday, The Green Organic Dutchman announced that it has submitted its paperwork to Nasdaq for consideration, including registration of common shares under the all-important U.S. Securities Exchange Act of 1934.

In related news: The Green Organic Dutchman’s stock price surged on Wednesday, gaining as much as 9.1%. With that type of volatility, TGOD would be a perfect fit for the Nasdaq. (Kidding aside, Nasdaq listing rules are pretty stringent.)

TGOD to Wall Street? At this point, why the hell not? | Source: GIPHY

The Green Organic Dutchman made its Wall Street ambitions public on Wednesday in an official press release. The company has already filed its application to Nasdaq and is awaiting final approval.

If it gets the greenlight, the company will maintain its TGOD ticker symbol on the New York-based exchange. North of the border, TGOD will continue to trade on the TSX Exchange.

Brian Athaide, CEO of The Green Organic Dutchman, said the Nasdaq listing will help his company attract global investors, among other things.

“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. Our team remains focused on executing our business plan and creating value for our shareholders.” – Brian Athaide

The Green Organic Dutchman didn’t specify when it expects to hear back from Nasdaq. Stay tuned.

Nasdaq listing requirements

Nasdaq is known to house more speculative investments than the New York Stock Exchange. The exchange is home to high-fliers in budding industries that are inherently more volatile (see biotechnology, for example). But don’t kid yourself: Nasdaq is an exclusive club that doesn’t let just anybody in.

To get a Nasdaq ticker symbol, companies need to have a good track record and solid management team (i.e., not Wayland). Their approval will be based on meeting at least one of four standards tied to earnings, capitalization-cash flow, capitalization-revenue and assets with equity. You can read more at Investopedia.

It doesn’t end there. Potential listees must also meet at least one of the following criteria:

Must have a minimum of 1.25 million publicly traded common shares upon listing, excluding those held by managers; and/or
The stock’s regular bid price at the time of listing must be USD$4.00 and must have at least three market makers; and/or
A stock may qualify under a closing price of $3.00 or $2.00 if it meets other requirements; and/or
The company must follow certain Nasdaq corporate governance rules; and/or
The company needs to meet minimum shareholder and trade volume thresholds.

TGOD stock surges

Shares of The Green Organic Dutchman surged on Wednesday, easily outperforming the major marijuana indexes and the lethargic S&P/TSX Composite. Looking at TGOD’s stock, you wouldn’t know that markets south of the border were hemorrhaging money over trade-war fears.

At its highest point, TGOD traded at CAD$3.47. At the time of writing, the stock was up 6.7% at $3.40.

On Wednesday, TGOD was the top performer in the 47-company Canadian Marijuana Index. | Source: Yahoo Finance

Since bottoming at seven-month lows on July 26, TGOD has rebounded almost 24%. With a market cap of $932 million, The Green Organic Dutchman is one of Canada’s biggest marijuana companies.

Investors keeping tabs on TGOD should tune in August 13 for the company’s Q2 earnings call. TGOD has quietly built one of the largest networks of organic production facilities. Early investors will likely be rewarded for their patience.

–Sam Bourgi

Full disclosure: The Green Organic Dutchman is an equity.guru marketing client.