The Green Organic Dutchman Holdings Ltd. (the “Company” or “TGOD”) (TSX:TGOD) (US:TGODF) is pleased to announce that it has entered into a multi-year agreement with Neptune Wellness Solutions Inc. (“Neptune”) (NASDAQ: NEPT) (TSX: NEPT) for extraction, formulation and packaging services. As part of the agreement, TGOD will have exclusivity on extraction, formulation and packaging of certified organic products within and for the Canadian market. Neptune’s expertise will enable TGOD to quickly scale up production of a wide range of consumer wellness products.
Under the terms of the agreement, TGOD will allocate more than 230,000 kilograms of cannabis and hemp biomass for Neptune to process and transform into premium certified organic consumer wellness products, making this the largest deal for a processor in the industry to date.
The contract between TGOD and Neptune covers a period of three years and is expected to be back-end loaded with the first year accounting for approximately 20% of the total value. It also marks a significant milestone for cannabis manufacturing in Quebec, creating high value jobs, complementing TGOD’s large investment in Valleyfield where the Company is nearing the completion of the first phase of what will become the world’s largest organic cannabis growing facility at over 1.3 million square feet.
“With this agreement, Neptune becomes a key partner for TGOD; we have been impressed with their commitment to innovation and excellence in every aspect of their business. Their unique capabilities in terms of extraction, formulation and packaging were decisive factors in our selection process,” commented Brian Athaide, CEO of TGOD. “Today’s announcement is significant not only because it enables us to start manufacturing certified organic consumer wellness products at scale, but also because of the large and sustained economic impact it will have in Quebec where TGOD is building the world’s largest organic cannabis production facility.”
TGOD will work closely with Neptune’s team to assist them in obtaining their organic certification. To facilitate the certification process, Neptune will allocate a dedicated space to house and operate TGOD’s proprietary and/or licenced technologies. In addition, Neptune is in the process of achieving the EU-GMP certification, allowing TGOD to export products to other jurisdictions as laws and regulations permit.
“We are excited to work with TGOD, an innovation driven company focused on value added and differentiated products,” said Jim Hamilton, CEO of Neptune. “The ambitions of each company are well aligned and we look forward to collaborating with TGOD, supporting their growth with new product forms.”
“TGOD’s commitment to organic and sustainability is inspiring; Neptune is proud to become a part of their success story. We are delighted that TGOD has placed its trust in our people and our technology with the largest deal in the industry to date,” commented Michel Timperio, President of Neptune’s Cannabis division.