TORONTO, Oct. 9, 2019 /CNW/ - The Green Organic Dutchman
Holdings Ltd. (the "Company" or "TGOD") (TSX:TGOD) (US:TGODF), a
leading producer of premium certified organic cannabis, announces
that it is reviewing financing alternatives in order to complete
construction at its facilities in Ancaster, Ontario and Phase 1a at Valleyfield, Quebec. As previously disclosed,
the Company had been engaged in discussions for ordinary course
commercial bank facilities and equipment leasing. However, due to
changing market conditions, those sources of financing have been
unavailable on acceptable terms within the timeframes required,
leading the Company to commence a review of additional
alternatives. The Company currently has no debt and $56.7 million in cash available in Canada, including $40.2
million in restricted cash allocated to capital
expenditures.
Construction at Ancaster is
largely complete with all grow rooms licensed by Health Canada and
approximately 6 weeks left before substantial completion of the
processing facility. The evidence package for this final component
is expected to be submitted to Health Canada by the end of November
for licensing. The Company will prioritize any financing secured to
accelerate commercial production in order to ramp-up revenues. TGOD
already has supply agreements in place with Alberta, British
Columbia and Ontario, and
plans to distribute nationally as production increases in 2020.
Portfolio development is underway for Cannabis 2.0 with first phase
of product launches scheduled for December
2019, including organic teas and infusers.
The Company may revise the construction schedule for its
Ancaster and Valleyfield projects if it is unable to obtain
sufficient financing on reasonable terms, within the required
timeframe. There can be no assurance that this review will result
in the completion of any financing transaction.
Ancaster Highlights
- Purpose-built facility designed specifically for premium
organic cannabis cultivation and processing.
- All grow rooms complete and licensed by Health Canada with
total annual production capacity for the site at 17,500 kg; first
harvest from greenhouse scheduled for Q4 2019.
- Existing Health Canada licence for cultivation, sales, oil
extraction and oil sales renewed until 2022
- EU-GMP certification underway to enable exports to Europe.
- Large scale organic cultivation combined with premium pricing
expected to generate strong margins.
- Constructed to Leadership in Energy and Environmental Design
(LEED) standards; certification expected upon completion.
Valleyfield Highlights
- World's largest organic cannabis facility at 1,310,000 sq. ft.
once completed; designed specifically for premium organic cannabis
cultivation.
- Phased approach with planned annual production capacity for
phase 1a of 65,000 kg; first harvest scheduled by end of Q1
2020.
- Total planned capacity of 185,000 kg once all phases are
completed.
- Access to North America's
lowest power rates combined with automation will enable low-cost
production.
- Large scale cultivation of premium organic cannabis expected to
generate industry-leading margins.
- Constructed to Leadership in Energy and Environmental Design
(LEED) standards; certification expected upon completion.
About The Green Organic Dutchman Holdings Ltd.
The
Green Organic Dutchman Holdings Ltd. (TSX: TGOD) (US-OTC: TGODF) 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. TGOD also
has organic hemp CBD oil operations in Canada, and through its wholly owned
subsidiary HemPoland distributes premium hemp CBD oil in the EU.
The Company grows high quality, certified 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 kg and
is building 1,643,000 sq. ft. of cultivation and processing
facilities across Canada,
Denmark and Jamaica.
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.
Forward-Looking Information Cautionary Statement
This news release includes statements containing certain
"forward-looking information" within the meaning of applicable
securities law ("forward-looking statements"). Forward looking
statements in this release includes, but is not limited to,
statements about construction and future production, statements
about the potential to achieve positive EBITDA and level of gross
margins, statements about timing of harvests, statement about the
potential for financing facilities, statements about the completion
of EU-GMP certification and LEED certification, statement about
status of Health Canada licences, statement about the offering of
any particular products by the Company in any jurisdiction and
statements regarding the future performance of the Company.
Forward-looking statements are frequently characterized by words
such as "plan", "continue", "expect", "project", "intend",
"should", "believe", "anticipate", "estimate", "may", "will",
"potential", "proposed" and other similar words, or statements that
certain events or conditions "may" or "will" occur. These
statements are only predictions. Various assumptions were used in
drawing the conclusions or making the projections contained in the
forward-looking statements throughout this news release.
Forward-looking statements are based on the opinions and estimates
of management at the date the statements are made and are subject
to a variety of risks and uncertainties (including market
conditions) and other factors that could cause actual events or
results to differ materially from those projected in the
forward-looking statements, including those risk factors described
in the Company's most recently filed Annual Information Form
available on SEDAR. The Company is under no obligation, and
expressly disclaims any intention or obligation, to update or
revise any forward-looking statements, whether as a result of new
information, future events or otherwise, except as expressly
required by applicable law.
Neither the TSX nor the TSX's Regulation Services Provider
(as that term is defined in the policies of Toronto Stock Exchange)
accept responsibility for the adequacy or accuracy of this
release.
View original
content:http://www.prnewswire.com/news-releases/the-green-organic-dutchman-provides-update-on-credit-financing-300934672.html
SOURCE The Green Organic Dutchman Holdings Ltd.