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Green Organic Dutchman Holdings Ltd (The)
Symbol TGOD
Shares Issued 271,435,887
Close 2019-03-19 C$ 5.48
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Green Organic loses $44.5M from operations in 2018

2019-03-20 02:06 ET - News Release

Mr. Brian Athaide reports


The Green Organic Dutchman Holdings Ltd. has released its financial and operational results for the year ended Dec. 31, 2018. These filings are available for review on the company's SEDAR profile.

Fourth quarter highlights

The company:

  • Ended the year with a strong balance sheet and liquidity, including $263.5-million of cash and restricted cash, to continue to finance its facilities expansion and international growth;
  • Completed the acquisition of HemPoland on Oct. 1, 2018, for total cash and deferred consideration of approximately $18.6-million;
  • Announced its first quarterly revenues through HemPoland resulting in $1.9-million of revenue for the fourth quarter;
  • Accelerated construction spending at Hamilton and Valleyfield sites to $39.5-million in the fourth quarter, an increase of 19 per cent, or $6.4-million, compared with $33.1-million in the third quarter 2018;
  • Completed a $76.2-million bought deal financing priced at $6.85 per unit;
  • Experienced a loss from operations of $18.1-million ($44.5-million for the full 2018 fiscal year) as a result of ramping up operations, numerous consumer research activities and administration in preparation for commercial production in 2019.

Year-end highlights

The company excelled in the following areas.


  • Completed the largest Canadian cannabis initial public offering, which closed on May 2, 2018, raising gross proceeds of $132.3-million, including overallotment;
  • Completed two bought deals worth $101.2-million in gross proceeds;
  • Completed private placements worth $77.6-million in gross proceeds;
  • Received reiterated support from the investor community with $63.4-million in warrants exercised.


  • Accelerated construction spending at Hamilton and Valleyfield sites to $96.8-million throughout the year;
  • Increased total planned global production capacity to 219,000 kilograms with improved design and engineering updates at its Canadian facilities.

International presence and key partnerships:

  • Opened the first dispensary, with its partner Epican Medicinals, in Kingston, Jamaica;
  • Formed joint venture with Knud Jepsen in Denmark to focus on production of cannabis and cannabis oils and develop and patent innovative cannabis genetics;
  • Created joint venture with LLACA Groupo Empresarial for distribution of medical cannabis into approximately 7,600 pharmacies and stores in Mexico;
  • Concluded a collaboration agreement with Velvet Management, a new company created by the largest wine distributor in Canada, Philippe Dandurand Wines, focused on cannabis sales and distribution;
  • Secured exclusive licensing rights to Stillwater Foods' Ripple SC patent-pending soluble cannabinoid ingredient technology and Evolab and CBx Sciences' brands and proprietary cannabinoid vaporization technologies for the Canadian market;
  • Incorporated multiple subsidiaries around the world, including in the Netherlands, Greece, Colombia and Germany, to execute the company's global vision.

Other key updates:

  • Appointed Prem Virmani as the company's beverage science and research division chairman; invested over $2.8-million into research and development expenses in 2018;
  • Appointed Brian Athaide as the company's chief executive officer and expanded executive team, bringing over 200 years of combined experience and leadership from the consumer product goods and pharmaceutical industries into the company;
  • Announced a spinoff transaction on July 19, 2018, to provide The Green Organic shareholders with an opportunity to participate in the seed round financing of a newly formed company to focus on global opportunities and assets not core to the company's business.

"Two thousand eighteen has been a pivotal year for the company. The accomplishments our team has made have been nothing shy of incredible," said Brian Athaide, director and chief executive officer of the company. "The company has raised substantial capital and grown the team with the addition of deep expertise and exceptionally skilled professionals to both management and our board," continued Mr. Athaide. "We are very excited for 2019, and we remain focused on delivering on the company's operational plans of producing and bringing to market high-quality, premium certified organic cannabis."

About The Green Organic Dutchman Holdings Ltd.

The Green Organic is a publicly traded, premium global organic cannabis company, with operations focused on medical cannabis markets in Canada, Europe, the Caribbean and Latin America, as well as the Canadian adult-use market. The company grows high-quality, organic cannabis with sustainable, all-natural principles. Its products are laboratory tested to ensure patients have access to a standardized, safe and consistent product. The company has a planned capacity of 219,000 kilograms and is building 1,643,600 square feet of cultivation and processing facilities across Ontario, Quebec, Jamaica and Denmark.

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