TORONTO, March 19, 2019 /CNW/ - The Green Organic Dutchman
Holdings Ltd. (the "Company" or "TGOD") (TSX: TGOD) (US:TGODF) is pleased to report its financial and operational results for the
year ended December 31, 2018. These filings are available for review on the Company's SEDAR profile
at www.sedar.com
Q4 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 fund its facilities expansion and international growth.
- Completed the acquisition of HemPoland on October 1st, 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%, or $6.4 million compared to $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:
Financing:
- Completed the largest Canadian cannabis IPO, which closed on May 2nd, 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.
Construction:
- Accelerated construction spending at Hamilton and Valleyfield sites to $96.8 million throughout the year.
- Increased total planned global production capacity to 219,000 kgs 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 Mr. Prem Virmani as the Company's Beverage Science and Research Division Chairman.
Invested over $2.8 million into Research and Development related expenses in 2018.
- Appointed Brian Athaide as the Company's CEO, 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 spin-off transaction on July 19th, 2018 to provide TGOD 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.
"2018 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 CEO 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 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 Dutchman Holdings Ltd. (TSX:TGOD) 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. TGOD's products are laboratory tested to ensure patients have access to a standardized, safe and consistent product.
TGOD has a planned capacity of 219,000 kgs and is building 1,643,600 sq. ft. of cultivation and processing facilities across
Ontario, Quebec, Jamaica and
Denmark.
TGOD's Common Shares and warrants issued under the indenture dated November 1, 2017 trade on the
TSX under the symbol "TGOD" and "TGOD.WT", respectively.
For more information on The Green Organic Dutchman Holdings Ltd., please visit www.tgod.ca
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SOURCE The Green Organic Dutchman Holdings Ltd.
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