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Green Organic Dutchman Holdings Ltd (The)
Symbol C : TGOD
Shares Issued 190,611,657
Close 2018-06-21 C$ 7.05
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Green Organic adds growing space to Valleyfield

2018-06-21 17:17 ET - News Release

Mr. Robert Anderson reports


The Green Organic Dutchman Holdings Ltd. has decided to add a 287,245-square-foot purpose-built facility on its Valleyfield property capable of producing 40,000 kilograms of premium organic cannabis. This facility will be dedicated to TGOD's beverage division and increases the company's fully financed capacity to 170,000 kg.

This newly dedicated cultivation building is being constructed to support TGOD's previously announced beverage division global strategic launch into the beverage industry. This includes a state-of-the-art manufacturing campus designed to conduct strain-specific studies, develop organic IP and create consumable optimized CBD/THC strains. Due to operating efficiencies within the 72.4-acre Valleyfield property, permits and cultivation licences granted, the company anticipates a significantly reduced construction timeline and budget. The company will build this facility using excess cash raised in its initial public offering and subsequent bought deal financings. With the synergies to be realized on the existing 72.4-acre Valleyfield property, the construction timeline and unit costs for this additional building enhance the overall economics of the entire facility.

TGOD's beverage division team has a unique understanding of the strict disciplines required for the large-scale, lean manufacturing of base ingredients used in a multitude of higher margin products. The process begins with TGOD's breeding facility, moves to the purpose-built cultivation, followed by the state-of-the-art 40,000-square-foot innovation centre. TGOD's beverage production facility will fill the market's current void and supply premium organic cannabis for research-and-development-specific development in products such as edibles and beverages.

"With the legalization of cannabis announced on June 20, and premier Justin Trudeau setting the legalization date of Oct. 17, the path is paved. The time is now to dedicate infrastructure, services and expertise to developing proprietary products. This is just another step for TGOD in its business plan of creating a distribution hub for large-scale beverage and edible products which can be introduced in Canada and internationally," said Csaba Reider, TGOD's president.

"We believe that the beverage and edible market will be the largest single segment of the cannabis market. Cannabis, as the base ingredient, makes these products possible. The medicinal and recreational market for CBD and THC will only increase over time and starting with an organic input is the most important aspect to developing these higher margin products," continued Mr. Reider.

This facility is fully financed and provides TGOD with a combined funded capacity of 170,000 kg across four facilities in two countries.

"With the successful vote on Bill C-45 by the Senate, and the fast-approaching adult-use recreational market, we feel that bringing this facility into production quickly will allow TGOD to capture market share and establish our brand. This facility will allow TGOD to develop strains and IP specifically for beverage manufacturing which can be brought to market in Canada and through our international partnerships," Robert Anderson, TGOD's co-chairman and chief executive officer, stated.

"Our unique organic approach to making major investments into consumables will be a major differentiator in the cannabis market. Our early investments today will allow TGOD to be a leader by taking innovations created in Canada to the rest of the world. We look forward to our expansion into several continents and multiple countries with best in class medicines and products," Mr. Anderson added.

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.

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