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Green Organic Dutchman Holdings Ltd (The)
Symbol C : TGOD
Shares Issued 190,611,657
Close 2018-06-11 C$ 7.55
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Green Organic Dutchman unit gets cultivation licence

2018-06-11 08:26 ET - News Release

Mr. Robert Anderson reports


Effective June 8, The Green Organic Dutchman Holdings Ltd.'s wholly owned subsidiary, Medican Organic Inc., has received its cultivation licence from Health Canada for the company's breeding facility in Salaberry-de-Valleyfield, Que. The commissioning of this facility will allow the company to create proprietary, organically grown strains of cannabis and cannabis seeds.

Located on a 72-acre property, the breeding building will house the cultivation of cannabis and the production of seeds and new strains. This building marks Green Organic's first facility in Valleyfield, which will be followed by the addition of Green Organic's flagship 820,000-square-foot state-of-the-art hybrid grow facility, which, when complete, will bring Green Organic's domestic production to 116,000 kilograms of high-quality, premium organic cannabis annually. Construction of Green Organic's hybrid facility commenced in early 2018, and to date, site clearing and earthworks have been completed. To view progress, please visit the company's website.

The history and cultivation of cannabis as a crop have resulted in significant limitations on the research of the plant and its development as an agricultural crop. With the changing regulatory landscape, there is a dramatic need to improve current agronomic traits in the different cannabis strains available to and in the possession of licensed producers.

Breeding has many different applications and there are several reasons why Green Organic plans to engage in a genetic breeding process, while focusing on growing new cannabis strains specifically tailored for specific medical and commercial uses. The various applications include:

  1. Improving the traits of existing strains;
  2. Creating new strains by identifying which cannabinoids lead to certain benefits, and then breeding plants that have specific cannabinoid profiles, resulting in potentially patentable products;
  3. Creating strains that, because of their genetic characteristics, are better suited to certain environmental conditions than others;
  4. Increasing the levels of specific cannabinoids. Specific cannabinoids have been proven to have beneficial effects on certain medical conditions, highlighting the need to advance breeding efforts focused on creating strains rich in cannabinoids such as CBD (cannabidiol), GBC and THCV. While for many decades breeders have focused on increasing THC (tetrahydrocannabinol) levels, the scientific research demonstrating the medicinal properties of CBD has resulted in an increased demand for high CBD strains;
  5. Increasing pest and disease resistance to reduce crop loss;
  6. Aiming to reduce flowering duration, creating direct profitability improvements by increasing the number of harvest per year;
  7. Stabilizing genetics in order to produce F1 seeds which will enable plant production directly through seeds as are used in crops such as tomato, cucumber and pepper. This will provide an alternative means to cloning for the growing of this crop.

"One of the biggest gaps in the cannabis industry is the stabilization of genetics through modern breeding techniques, a process that is carried out with most agricultural crops. TGOD's breeding facility will implement marker-assisted selective breeding to improve traits in cannabis, such as disease resistance to reduce the industry need to rely on pesticides. Improving the plant architecture and flower structure will allow for better mechanization of the harvesting process," said David Bernard-Perron, vice-president, growing operations.

"TGOD's focus on R&D in the area of breeding and plant genetics will further position the company as a global industry leader. This technology will enable the company to produce its own high-quality organic cannabis seeds and starting material, which TGOD intends to leverage in its international operations. We are very excited to be focusing our efforts on this important area of innovation which will lead to more tailored strain compositions and a more customized premium product for patients and users," said Robert Anderson, co-chairman and chief executive officer.

About The Green Organic Dutchman Holdings Ltd.

The Green Organic Dutchman Holdings is a research and development company licensed under the Access to Cannabis for Medical Purposes Regulations (ACMPR) to cultivate medical cannabis. The company carries out its principal activities producing cannabis from its facilities in Ancaster, Ont., pursuant to the provisions of the ACMPR and the Controlled Drugs and Substances Act (Canada) and its regulations.

The company grows high-quality, organic cannabis with sustainable, all-natural principles. Green Organic Dutchman's products are laboratory tested to ensure patients have access to a standardized, safe and consistent product.

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