Shares of Green Organic Dutchman Holdings Ltd (OTCMKTS:TGODF) are up by more than 60%. The rally follows the confirmation that the company is moving forward on its aggressive, de-risked business plan as it also continues to expand all aspects of its business empire. A balance sheet of $261.8 million is another attribute that seems to have strengthened investor confidence in the company’s ability to finance its strategic plans going forward.
Price Action And Catalysts
Over a short period as a public company, Green Organic Dutchman Holdings has achieved a lot something that has gone a long way in strengthening its sentiments among investors. For starters, the shareholder base has increased fivefold to 20,000 as the company continues to grow like a weed through partnerships.
It thus does not come as a surprise that investors have continued to push the stock up the charts, given the positive developments that underline the robust growth trajectory. Price action already points to further movements on the upside.
A closer look at the chart above, it is clear that the stock has breached a critical resistance level at the $6 a share mark. With sentiments in the cannabis sector turning positive after a rollercoaster first half, it is clear that the stock could continue powering high.
Given the strength of the upward momentum, the stock looks set to continue climbing high. On the downside, the stock faces immediate support at the $5.40 level on any sell-offs, below which the stock remains susceptible to declines to the $4.50 level seen as the next support level.
Before we look at the catalysts behind the recent upswing, let’s look at what Green Organic Dutchman Holdings does in pursuit of growth and shareholder value.
About Green Organic Dutchman Holdings
Green Organic Dutchman Holdings is a research and development company with operations in the legal cannabis sector. The company produces organic cannabis products including dried cannabis, cannabis oils edibles, and seeds for medical applications.
The company has a strategic partnership with Aurora Cannabis Company which has invested about C$78.1 million in it, as part of an off-take agreement on Canadian production.
Growing Business Empire
Shares of Green Organic Dutchman Holdings are skyrocketing on huge volume on investors taking note of a string of positive developments that point to rapid growth going forward. The company has already released its second quarter operational and financial results, which affirm how focused it is about pursuing opportunities in the burgeoning cannabis marketplace.
For starters, the company has made progress on the construction of cultivation and production facilities in Ancaster, whereby cultivation is set to commence in the first half of next year. A balance sheet of $261.8 million provides the management team with the much needed financial muscle, needed to execute various plans as the company positions itself to become the largest organic cannabis brand in the world.
The announcement that the company is set to launch its high quality, a consumer-preferred premium organic brand has also gone well with investors. The company’s patient database through which it is set to sell its medical marijuana products is also growing at an impressive rate. The company’s organically certified cannabis brands also continue to gain traction in the market.
“Construction is on schedule across all jurisdictions, and we continue to aggressively build our medical and adult-use brand. TGOD is investing heavily in consumer research, R&D and simultaneously building both the capability and systems needed to rapidly scale as we prepare for the adult-use market,” said CEO Brian Athaide.
Green Organic Dutchman Holdings is also expanding its footprint on the international scene having already launched operations in Jamaica. The current business plan calls for operations in 12 countries across three countries, as the company looks to diversify the market for its products.
The company has already signed an agreement to acquire a 100% stake in European CBD Company HemPoland as it looks to strengthen its operations in the region. The acquisition will provide the company with access to a vast distribution network as well as state of the art hemp oil extraction technologies.
Green Organic Dutchman Holdings has achieved significant milestones even though it is barely two years old. After a recent spike in share price, it is clear that the stock has a lot of room to run on the upside as the management continues to act on a robust expansion plan, backed by a solid cash balance.
The stock has turned around, after the most recent bear run, underlining the fact that bulls have regained control. Amidst renewed investor interest in the stock, waiting for a pullback before entering long position would be an ideal play in this case.
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Disclosure: We have no position in TGODF and have not been compensated for this article.