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Green Organic Dutchman Holdings Ltd (The)
Symbol C : TGOD
Shares Issued 190,611,657
Close 2018-06-14 C$ 6.42
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Green Organic forms JV with Epican Medicinals

2018-06-14 10:24 ET - News Release

Mr. Robert Anderson reports


The Green Organic Dutchman Holdings Ltd. has entered into a strategic partnership with Epican Medicinals Ltd. This partnership will add an additional 14,000 kilograms, taking Green Organic's total organic financed capacity to 130,000 kg. Epican is a vertically integrated Jamaican cannabis company with cultivation, extraction, manufacturing and retail distribution licences. This strategic partnership introduces Green Organic's premier organic cannabis brand to the international medical market.

"This represents the first of many strategic partnerships TGOD intends to execute in the coming months," said Robert Anderson, chief executive officer. "Our value-added approach taken in this investment will set an international M&A framework for capital investment, transfer of knowledge and sector expertise. We will continue to evaluate international opportunities that will assist us in executing our business plan to become the world's largest organic cannabis brand," continued Mr. Anderson.

Epican produces high-quality cannabis at its primary Blue Mountain cultivation site and has partnered with Green Organic to construct a second 125,000-square-foot Good Manufacturing Practice (GMP) compliant facility. Upon receiving the second site licence, both facilities will cultivate high premium organic strains for the Jamaican and international markets. The company will be working with Eco-Cert to achieve organic certification in Jamaica.

Epican's extraction laboratory has been designed, licensed and built to GMP standards, establishing the company as a leader in sustainability with Jamaica's Cannabis Licensing Authority. The company intends to sell a wide range of products such as dried flower, oils, prerolled joints, vapes, tinctures, among others. Epican's initial offering of 11 scientifically formulated products will allow the company to service medical cannabis patients through its network of retail dispensaries.

Jamaican dispensaries, known as herb houses, are crucial to the distribution of cannabis in Jamaica. Epican, with its first mover advantage, is opening its flagship dispensary in July, 2018, located in Kingston, Jamaica. This will represent the first of many Herb Houses, with several more to be completed by the end of 2018 including locations along Jamaica's northern coast. These locations will serve the medical needs of Jamaica's three million residents and approximate 3.5 million visitors each year.

Jamaica has long been recognized as a premier location for cannabis enthusiasts and Epican has deep roots in the country. Founders, the McKenzie brothers, have been at the forefront of the nation's burgeoning medical cannabis industry, including extensive advocacy for the responsible development of the industry. Epican's social commitment to Jamaica's agricultural community includes a partnership plan to support Jamaica's small farmer program. Epican was awarded the country's historic first cultivation licence.

International expansion is an integral part of Green Organic's business plan. The partnership with Epican will provide a low-cost platform from which Green Organic is supplied premium Jamaican grown medical cannabis for export to select international jurisdictions, as regulations permit.

Green Organic's partnerships are more than an investment for a portfolio company. Green Organic investments are structured as true partnerships, where portfolio companies receive countless hours of support and industry-leading knowledge. This knowledge transfer includes cultivation methodology, extraction, research and development, and organic certification, through to accounting, auditing, sales, marketing and distribution. This is exemplified in Green Organic's investment into Epican and Jamaica, by providing expertise to expedite Epican's organic certification process through Eco-Cert, developing and refining its sales, marketing and branding plans, outreach to all-inclusive resorts and digital marketing focused on medical tourism.

Karibe McKenize, chief executive officer of Epican, stated: "We are excited to partner with and benefit from TGOD's immense knowledge in organic cannabis cultivation. This expertise supports and enhances our authentic Jamaican production and ensures patients receive a product that is completely free from chemical pesticides and synthetic fertilizers. Our partnership with TGOD solidifies our commitment to producing cannabis in the most sustainable and natural methods possible, honouring Jamaica's historic relationship with the natural and medicinal benefits of the plant."

In conjunction with the strategic partnership agreement, Green Organic has entered into a binding agreement to invest into Epican for a 49.18-per-cent interest. Furthermore, Green Organic will provide Epican access to its financing facilities to support future expansion requirements. The transaction is subject to customary regulatory and Toronto Stock Exchange approvals.

"This is the first example of how we can partner with and introduce companies like CBx Technologies and Stillwater Brands to foreign jurisdictions," said Csaba Reider, the company's president. "Through the development of GMP compliant, state-of-the-art extraction labs, TGOD will begin manufacturing these proven brands in international jurisdictions as regulations permit," continued Mr. Reider.

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. Green Organic Dutchman has a financed capacity of 116,000 kilograms and is building 970,000 square feet of cultivation facilities in Ontario and Quebec.

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