The Green Organic Dutchman Holdings Ltd. (the “Company” or “TGOD”) (TSX: TGOD) (US: TGODF) is pleased to report its financial and operational results for the three months ended March 31, 2019. These filings are available for review on the Company’s SEDAR profile at www.sedar.com.
- Is on-track with construction at Hamilton and Valleyfield sites, with investment amounting to $46.9 million in the first quarter of 2019, an increase of $7.4 million compared to $39.5 million incurred in the fourth quarter 2018.
- Achieved revenues primarily from HemPoland of $2.4 million, a 28% increase over the prior quarter.
- Launched its Grower’s Circle on March 25th, 2019, commencing direct to patient medical sales in Canada with products from its existing Hamilton facility. However, the Company did not record any material revenue from Canada in the period as it completed a small number of shipments prior to the end of March with the bulk of the March orders being shipped in April 2019 and therefore being recognized in the second quarter of 2019.
- Ended the quarter with a strong balance sheet and liquidity, including $224.4 million of cash and restricted cash to continue funding its facilities expansion as well as for operating costs and international growth.
- Experienced a net loss of $14.1 million as it continues its preparation for commercial production and entry into the recreational market later this year. The net loss improved by $4 million compared to the previous quarter as a result of increasing sales in Poland and stronger net results from Epican in Jamaica rolling into TGOD’s financials; management also maintained a disciplined approach to operational costs as it ramps up for commercialization of the products in Canada.
Other key updates
- Reached a settlement for cannabis zoning with the City of Hamilton for the Hamilton facility, paving the way to growing at scale in the City.
- Progressed business development activities, demonstrated by the partnership with Symrise in Califormulations announced subsequent to quarter end, which accelerates the company’s plans to participate in the $20 billion U.S. functional beverage category, including wellness, energy and sport recovery. These capabilities make the Company a stronger potential partner for global beverage and CPG companies.
- Added deep pharmaceutical and medical experience to its team with the additions of Jacques Dessureault and Dr. Caroline MacCallum to its Board of Directors, and Dr. Rav Kumar as its Chief Science Officer.
- Entered into purchase agreements for multiple EnWave 120kW REV machines, accelerating the drying process and overall seed to sale process for the Company.
- Entered into an extraction agreement with Valens for the processing, extraction and purification of TGOD’s cannabis and hemp biomass under conditions specified by the Company. TGOD will supply Valens with significant quantities of cannabis and hemp while Valens will provide extraction purification services, processing the cannabis and hemp into premium quality resins and distillates.
- Advanced its discussions with provincial boards, executing supply agreements with the Ontario Cannabis Store in February and BC Cannabis Store in May.
- Achieved its second organic certification for the Hamilton Facility from Pro-Cert.
Investor conference call to discuss first quarter results
Management will host a conference call tomorrow at 9:00 a.m. Eastern Time to discuss the results. Participants may access the call by dialing 416 764-8688 (Toronto) or 1 888 390-0546 (North America). For those unable to participate on the live call, a playback will be available for one week after the conference call using this URL: https://event.on24.com/wcc/r/2000560/A41E1009460930B4049B2D2E19CCCFED
“Q1 results are continued proof that we are delivering on our business plan with executional excellence,” commented Brian Athaide, CEO of TGOD. “The Company is now bringing to market high quality, premium certified organic cannabis flower and hemp-derived CBD oils. With the construction of the Hamilton facility nearing completion and our flagship Valleyfield facility on track, TGOD will soon be able to sell at scale in Canada and rapidly grow the organic segment that is currently being significantly under-served by the market,” continued Athaide.