TGOD is the largest certified organic cannabis producer in Canada The company has raised more than C$450 million to fund both its domestic and international plans Operations are focused on medical cannabis markets in Canada, Europe, the Caribbean and Latin America, as well as the adult-use market in Canada Recently received its oil sales licence from Health Canada, which will allow the company to transform its organic raw material into a variety of higher-margin cannabis products What The Green Organic Dutchman does: ( ) (OTCMKTS:TGODF), or TGOD, as it is commonly referred to as, is a certified organic cannabis producer in Canada -- the largest licenced producer, in fact. The company's name is a nod to its roots: established by Dutch founders, the company grows organic cannabis in high-technology, eco-friendly and sustainable facilities. The company is clear about its aim: to build a leading global organic cannabis brand and 2019 has gotten off to a busy start. TGOD's operations are focused on medical cannabis markets in Canada, Europe, the Caribbean and Latin America, as well as the adult-use market in Canada. The company also has organic hemp CBD (cannabidiol) oil operations in Canada, and through its subsidiary, HemPoland, distributes premium hemp CBD oil in the EU. TGOD's cannabis is grown in living soil without the use of synthetic pesticides, herbicides or fertilizers. The cannabis is not subject to irradiation, a process that can extend the shelf life of foods by reducing the number of microorganisms that cause spoilage, but can also affect the terpene profile of the cannabis. Terpenes refer to the aromatic organic compounds in the plant responsible for scent and flavor. A 2018 Hill & Knowlton research study found that 57% of Canadian medical cannabis consumers and 43% of recreational cannabis consumers prefer organic cannabis. TGOD extracts the cannabis oils found in its products using carbon dioxide, a process that doesn’t involve solvents or additives that can be harmful to the environment. TGOD is certified organic by Pro-Cert and its growing process is certified organic by ECOCERT Canada. Pro-Cert and ECOCERT are two of North America’s most recognized organic certification bodies. How is it doing: It's been a gangbuster time for TGOD. The company has been busy building out its facilities in Ontario, Quebec, and Jamaica with more 1,476,000 sq/ft of hybrid greenhouses and processing facilities under construction in Canada and more than 167,000 sq/ft planned internationally across Europe and Jamaica. TGOD expects to reach combined production of 219,000 kilograms of cannabis around 2021. On the financing side, the company has raised more than C$450 million to fund both its domestic and international plans. TGOD recently received its oil sales licence from Health Canada. The move will allow the company to transform its premium quality organic raw material into a variety of higher-margin cannabis products, core to its business plan. At the company's facility in Ancaster, Ontario, the firm has gotten the green light to operate its greenhouse. In May, the company and city council finalized a settlement, as well as the fact that the local planning appeal tribunal approved the settlement in early May. When the cannabis company’s facilities in Ancaster are completed it will be capable of growing 17,500 kgs of organic cannabis per year. TGOD's Valleyfield facility is located in Quebec, home to the lowest power rates in Canada, giving the company a competitive advantage. Its Ontario property is designed to include a natural gas power plant, which will reduce costs. In January, the company inked an agreement with Queen Genetics/Knud Jepsen A/S in Denmark, which will help the company expand throughout Europe. Last year, the company invested $35 million to acquire Poland-based CBD company HemPoland. In April, it announced encouraging news that HemPoland has received organic certification from EKOGWARANCJA PTRE, the largest certification body supported by the Polish Ministry of Agriculture and Rural Development. TGOD also opened its second legal cannabis retail store in Jamaica, along with Epican Medicinals. Located on Montego Bay's strip, the flagship location opened in May. There's no sign of TGOD slowing down anytime soon: it has expanded internationally initially through Jamaica, Denmark, Poland and Mexico and continues to explore other strategic international opportunities. In addition to its international footprint, TGOD also boasts a high production capacity in Canada. On the home front, the market looks bright: Ontario and Quebec represent two-thirds of the Canadian population with a potential market valued at C$1.12 to C$2.68 billion. TGOD's recently received oil sales licence from Health Canada is also key milestone, allowing it to transform its premium organic raw material into a variety of higher-margin cannabis products, allowing it to sell to its medical patient community. Inflection points: TGOD’s Valleyfield facility is located in Quebec, home to the lowest power rates in Canada, giving the company a competitive advantage The organic cannabis cultivated in the hybrid facilities can be sold at a 34% premium on average in the industry The desire for an organic product is high: A 2018 Hill & Knowlton research study found that 57% of Canadian medical cannabis consumers and 43% of recreational cannabis consumers prefer organic cannabis. The recently received oil sales licence from Health Canada is an important milestone: it will allow the company to transform its organic raw material into a variety of higher-margin cannabis products. Contact Katie Lewis at katie@proactiveinvestors.com<doc-sep>The Toronto-based cannabis company secured a cannabis supply arrangement with Alberta Gaming, Liquor & Cannabis, the Canadian province’s legal, recreational online cannabis store The Green Organic Dutchman is Canada's largest licensed producer of 100% certified organic cannabis flower and oils ( ) (OTCMKTS:TGODF) is expanding its footprint throughout western Canada thanks to a new supply agreement in the province of Alberta. The Toronto-based cannabis company announced Friday that it has secured a cannabis supply arrangement with Alberta Gaming, Liquor & Cannabis, the Canadian province’s legal, recreational online cannabis store. "Alberta is an important market for us as we continue to expand our distribution channels across Canada," said Brian Athaide, CEO of TGOD. "With our production facilities in Hamilton, Ontario and Valleyfield, Quebec coming online in phases, we are thrilled to start distributing TGOD's premium certified organic cannabis to AGLC." The agreement was facilitated in collaboration with its distribution partner Velvet Management Inc. TGOD has been making significant strides in recent weeks to bolster its presence throughout Canada, including a new supply agreement with the BC Liquor Distribution Branch, which operates under BC Cannabis Stores, British Columbia's public retailer of non-medical cannabis. The Green Organic Dutchman is Canada's largest licensed producer of 100% certified organic cannabis flower and oils. Established by Dutch founders, the company grows organic cannabis in high-technology, eco-friendly and sustainable facilities. The cannabis is grown naturally in Canadian soil without the use of synthetic pesticides, herbicides or fertilizers and wrapped in eco-friendly packaging. The result is a cleaner, premium product for the medical and recreational markets. Shares of TGOD slipped 0.5% at C$4.03 in Toronto and at US$3 on OTC markets. --Updates with share price-- Contact Angela at angela@proactiveinvestors.com Follow her on @AHarmantas<doc-sep>Cronos Group (NASDAQ:CRON) has received plenty of attention from U.S. investors in recent months. The Green Organic Dutchman (OTC:TGOD.F) for the most part hasn't benefited from a lot of publicity in America. But guess which stock has performed better so far this year? Pat yourself on the back if you answered The Green Organic Dutchman (TGOD). However, Cronos Group has a much better long-term track record, even ranking as the top-performing marijuana stock of all time. Past performance doesn't matter much in determining which of these two Canadian marijuana stocks is the better pick now, though. Here's how Cronos and TGOD stack up against each other on what does matter. The case for Cronos Group There are at least 1.8 billion reasons to like Cronos Group. Those reasons correspond to the dollars invested in Cronos by tobacco giant Altria (NYSE:MO) in exchange for a 45% stake in the company. Cronos benefits from its relationship with Altria in two important ways. First, the company now has a nice cash stockpile. Cronos plans to put that money to good use by expanding its product development and commercialization capabilities. Altria's cash should also help Cronos reduce its dependence on dilution-causing stock offerings. Second, Cronos now has a huge partner at its side with a long history of building successful commercial brands across the world. There are several similarities between the cannabis and tobacco industries that could make Altria's relationship with Cronos more valuable over time. Cronos also has another partnership that could be really important in the not-too-distant future. Last year, Cronos teamed up with Gingko Bioworks to produce cannabinoids from engineered yeast strains. The potential for this technology is enormous in that it could slash the time and expenses associated with producing cannabinoids from cannabis plants. In the meantime, Cronos is making more money than ever thanks mainly to the Canadian adult-use recreational marijuana market. The company also has a good start on the international front, with partnerships and joint ventures in Europe, Australia, Israel, and Colombia. Cronos Group's annual production capacity currently stands at around 40,000 kilograms. However, the company expects to boost that level to close to 117,000 kilograms with its Cronos GrowCo joint venture and increase its capacity even more with its ownership interest in NatuEra. The case for The Green Organic Dutchman The Green Organic Dutchman is way behind Cronos in production capacity for now. But that could soon change. By the end of 2019, TGOD expects to be able to grow 65,000 kilograms of cannabis per year. And that's just a start. The company anticipates increasing its annual production capacity to 219,000 kilograms by the latter part of 2020. That's enough to rank TGOD at No. 5 among all Canadian marijuana producers in production capacity. Until it brings more capacity on line, TGOD won't have any significant revenue. However, once its early capacity expansion efforts are completed, the company should be in a pretty good position. TGOD has already lined up a distribution partner for the Canadian adult-use recreational market formed by Canada's largest wine distributor, Philippe Dandurand Wines. The company plans to focus heavily on the Canadian cannabis edibles and beverages market that's anticipated to open later this year. Last year, TGOD announced that it will dedicate roughly 40,000 kilogram-equivalents of its peak annual production to cannabis edibles and beverages. TGOD has also laid the groundwork for international growth. The company has joint ventures in Denmark and Mexico. It partnered with Epican to target the medical marijuana market in Jamaica. TGOD also owns HemPoland, a Poland-based hemp cannabidiol (CBD) producer. At least one analyst thinks TGOD could skyrocket. Jefferies projects that the stock could jump 45% above its current share price. The investment firm especially likes TGOD's focus on the premium organic cannabis market. Better marijuana stock Based on bang for the buck, The Green Organic Dutchman probably looks like the better pick. Its market cap is only around 15% of Cronos Group's, but TGOD's projected production capacity is significantly higher than Cronos Group's expected capacity. However, there's more to being successful in the global cannabis industry than just capacity. I think that Cronos Group's Altria relationship gives the company a big advantage that might not be as obvious right now as it will be in the near future. TGOD might continue to outperform Cronos in 2019. Over the long run, though, I suspect that Cronos -- joined at the hip with Altria -- will be the bigger winner.<doc-sep>
The cannabis company will work with Califormulations to speed up the US launch of its branded organic hemp-based CBD drinks TGOD already boasts operations focused on medical cannabis in Canada, Europe, the Caribbean and Latin America, as well as the Canadian recreational market ( ) (US:TGODF) announced Wednesday that it had entered the US beverage space as a co-founding investor and strategic partner in newly formed Califormulations LLC. Califormulations will operate out of Columbus, Georgia serving global branded companies with concept-to-shelf beverage commercialization support including formulation development, technical services, in-house pilot scale production and contract manufacturing coordination. The Green Organic Dutchman will work with Califormulations to speed up the US launch of the company’s branded organic hemp-based CBD beverages, as local laws and regulations permit. "We are incredibly excited to partner with Califormulations to further our development of hemp-based CBD beverage products," said Green Organic Dutchman CEO Brian Athaide in a statement. "With the US market for functional beverages, including wellness, energy and sport recovery, currently worth over $20 billion, we want to remain on the cutting edge of innovation and establish the foundation for future proprietary and novel TGOD-branded products.” Athaide added that the “forward-looking strategic partnership” positions Green Organic Dutchman to capitalize on the future cannabinoid beverage market. Califormulations is well positioned to immediately execute on a strategy to become a top beverage formulation and commercialization centre in the US. The Green Organic Dutchman’s cofounding investment in Califormulations is happening alongside Symrise Inc, including its Beverage Innovation Centers in Laguna Beach and Teterboro. Symrise, Green Organic Dutchman and the founding management have chipped in with equity and debt financing to capitalize and get Califormulations off the ground. Global organic CBD beverage strategy As global laws and regulations change, Califormulations will allow the Green Organic Dutchman to manage supply chains. Initially the focus will be on having bulk non-infused beverage concentrates produced and shipped by Califormulations to Green Organic Dutchman-owned and contracted manufacturing sites around the globe, including Canada, for infusion with cannabinoids and distribution within legal markets. Califormulations is a key component in Green Organic Dutchman’s existing global organic cannabinoid-infused beverage strategy. The company’s beverage team will have access to and use of Califormulations' R&D facilities to collaborate on hemp-derived CBD beverage developments, while maintaining and enhancing the company’s intellectual property portfolio. The Green Organic Dutchman will enjoy “certain exclusivities” linked to the development of organic CBD-infused beverages through the Califormulations platform, said the company. "Collectively, the complementary capabilities of this ecosystem give Califormulations a unique position in the beverage/consumer packaged goods market that will foster innovation and scale new, successful brands quickly," said Paul Graham, president of Symrise Flavors North America. The Green Organic Dutchman boasts operations focused on medical cannabis in Canada, Europe, the Caribbean and Latin America, as well as the Canadian recreational market. Established by Dutch founders, the company grows organic cannabis in high-technology, eco-friendly and sustainable facilities. The cannabis is grown naturally in Canadian soil without the use of synthetic pesticides, herbicides or fertilizers and wrapped in eco-friendly packaging. —(Updates with details on global CBD beverage strategy, quotes, adds video)— Contact Uttara Choudhury at uttara@proactiveinvestors.com Follow her on : @UttaraProactive