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by Stockwatch Business Reporter
The S&P/TSX Cannabis Index dropped 3.91 points to 169.01 Wednesday, while the Canadian Securities Exchange Composite Index slipped 0.19 point to 384.41. Canadian cannabis producer The Green Organic Dutchman Holdings Ltd. (TGOD) lost 5.5 cents to 48.5 cents on 17.13 million shares on its Q1 2020 results, which the company released yesterday after the market closed. The Dutchman lost $73.4-million in Q1 2020, down from $144.7-million in Q4 2019. Both of those losses were largely from impairment charges, including $55.8-million in Q1. Even ignoring the impairment loss, the Dutchman had an operating loss of $15.3-million in the first quarter.
Green Organic's chief executive officer, Brian Athaide, remained upbeat in the face of the losses. He talked about the company being "on track to becoming operating cash flow positive later this year" and the Dutchman's "near-term profitability."
It is hard to imagine the Dutchman becoming profitable any time soon. The Dutchman's Q1 2020 operating loss of $15.3-million was five times the company's revenue of $3-million. From a cash-flow perspective, the Dutchman burnt through $13-million from operations in the quarter. That brings up another problem for the company.
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