Our last review of the Green Organic Dutchman Holdings Ltd (OTCMKTS:TGODF) – which can be read here – spoke to the firm’s price outlook turning bearish. Back then, the firm had reported missed earnings and this had been assessed to have been a catalyst to the price turn.This trend has, however, changed since January.The firm is currently witnessing a surge in its share price (similar to that being seen across the industry). The month of January saw the share price open at $2 per share, a price which has since risen to highs of $3 per share; a 50% increase in price. Currently, however, it stands at $2.85 per share as seen in the chart below: TGODF Daily ChartA slow and steady increment has therefore been noted. Moreover, despite the share price increment, the number of shares traded has not increased drastically. Upon this backdrop, we opted to have a look at the firm so as to establish the driver to this price action. This report presents a summary of our findings.
Background to TGODF
First, let us have a look at the firm’s background prior to going into its future plans.Green Organic Dutchman Holdings Ltd was first incorporated in 2016 and situated in Mississauga, Canada. As with most cannabis firms then, the expectation was to tap into the new Canadian market regulations which would allow for both medical and recreational use of cannabis federally.The firm has since inception oriented itself in line with this by operating as a cannabis research and development company. Through this, the firm produces organic cannabis products which are then used for medical purposes. These products include (but aren’t limited to): organic dried cannabis, seeds, cannabis oils, and edibles.
Recent Developments
There are only a few companies which are working as hard as TGODF to grow their production capacity. The firm has continued to put in place the infrastructure which will see them achieve over 200,000 kilograms of cannabis in production by the end of 2020. This will put them at a pedestal in terms of their distributive capacities and further drive them higher among the list of cannabis giants.These developments include the following:
Improved Infrastructure
TGODF is currently working on its beta facility in Hamilton, Ontario.While this facility currently has an annualized production capacity of 1,000 kilograms, the investment placed in its development is meant to see them hit the 17,500 kilograms per year mark by the third quarter of 2019.The above is but a drop in the water when compared to the second facility the firm is currently developing in Valleyfield, Quebec. This is expected to have a total production capacity of over 65,000 kilograms by end of 2019 and over 185,000 kilograms per annum by 2020. As a result, the firm has oriented itself as a top five marijuana producer in Canada.In addition to the above information, the company has announced that it has already secured a distribution partner within Canada. The firm, Velvet Management, which has partnered with Canada’s largest wine producer, had already set up the distribution channels across the country. This is expected to grow the firm’s reach, ensuring that they can sell all the products developed in their facilities and boosting their revenues.
The Ontario Agreement
While the rest of Canada is a ripe market for cannabis, Ontario is the most populous province in the country, therefore, the biggest market.In order to get into this province, TGODF has entered into a partnership agreement with the Ontario Cannabis Retail Corporation, a firm which operates the Ontario Cannabis Store which is the only legalized recreational cannabis retailer in the province.The announcement comes well-timed given that TGODF is poised to begin its supply by 1st April. Its continued investment within the development wing will soon need to hit the market. the result is that their brand will need to be grown across the Canadian market. There’s no better way to achieve this than through ensuring that the top retail company actually stocks their brand on their shelves.
Other Global Markets
The firm is not only working towards entering into Canada but also ensuring that their brand is seen across the globe.Recent news showed it having ventured into Denmark through a joint venture with Knud Jepsen who will act as the firm’s production partner. The agreement which has received a thumbs up from the Danish Medicines Agency, the regulatory body for cannabis in Denmark which is responsible for issue of cannabis licenses, will see TGODF’s partner begins to import material meant for research and actually begin to execute the research into the use of cannabis for the creation of elite cannabis genetics.In addition to this, TGODF has further gotten into Jamaica, Mexico, and Poland through joint ventures as well as acquisitions.
Conclusion
Through its entry in other Canadian and global markets, TGODF is securing its position in the big leagues. The firm’s investment in infrastructure, as well as its continued partnerships, continue to set it up for growth, and this will eventually be actualized. We thus are bullish about TGODF.We will be updating our subscribers as soon as we know more. For the latest updates on TGODF, sign up below!Disclosure: We have no position in TGODF and have not been compensated for this article.
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