The Green Organic Dutchman Holdings Ltd. (TSX:TGOD), one of the Canadian marijuana stocks, said it has secured a cannabis supply agreement with the Ontario Cannabis Retail Corporation
SmallCapPower | February 12, 2019: The Green Organic Dutchman Holdings Ltd. (TSX:TGOD), one of the Canadian cannabis stocks, Friday announced that it has secured a cannabis supply agreement with the Ontario Cannabis Retail Corporation. This is the Company’s first provincial supply agreement and marks a key milestone for TGOD as it progresses towards completing its domestic facilities, with production expected to increase throughout 2019. Green Organic Dutchman is also planning several such provincial supply agreements as part of its national recreational rollout strategy.
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Operating as the Ontario Cannabis Store (OCS), the Ontario Cannabis Retail Corporation launched online sales in October 2018. Supply of cannabis products by OCS to licensed private retail stores across the province is set to begin in April 2019.
The supply agreement with OCS was negotiated jointly between Green Organic Dutchman and its partner, Velvet Management Inc., a company created by the largest wine distributor in Canada, Philippe Dandurand Wines. Velvet will provide TGOD with integrated sales and distribution capabilities for its organic cannabis products to provincial liquor and cannabis boards across Canada.
Green Organic Dutchman is a global organic cannabis player with operations in Canada, Europe, the Caribbean and Latin America. Within Canada, construction is underway at two facilities in Hamilton, Ontario and Valleyfield, Quebec. The 150,000 sq. ft., 14,000 kgs annual capacity Hamilton facility is expected to be completed in Q1 2019, with first harvest in H1 2019. The Valleyfield Facility, the world’s largest organic cannabis facility with a total capacity of 142,000 kg capacity annually, is expected to begin first cultivation in Q2 2019, with ramp up in H2 2019. By 2020, TGOD’s total peak capacity could exceed 200,000 kgs annually, making it a Top 5 marijuana producer in Canada. Internationally, The Green Organic Dutchman has production facilities in Jamaica (14,000 planned capacity) and Denmark (25,000 kgs of production), and a sales and distribution partnership in Mexico.
Green Organic Dutchman stock currently trades at a market cap of $886 million on the TSX.
Disclosure: Neither the author nor his family own shares in the company mentioned above.
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