by Eric Vengroff, Financial Analyst, Cannabis Daily
The Green Organic Dutchman Holdings Ltd. (the “Company” or “TGOD”) (TSX: TGOD) (US: TGODF) reported its financial and operational results for the second quarter of fiscal 2018, ended June 30th, 2018.
The Company’s strong balance sheet with cash and cash equivalents of $262 million provides a great deal of runway into the market, and it’s a darned-good thing, because the company just rolled up and smoked another $7.2 million in cash for the three months ended June 30, 2018. This spend included initiatives in market research, marketing and brand building in anticipation of the Company’s launch into the recreational market. Although the company shows no revenue to date, they report that the patient database continues to grow. The back-office ecommerce network agreement with Shopify has been consummated, and an ecommerce platform is in development. Aurora Cannabis (TSE: ACB) is an investor in the company and through an off-take agreement has agreed to buy up to 20% of the company’s production. On May 1, 2018, Cameron Battley. CCO of Aurora was appointed to the Board of Directors.
“We are pleased with the accomplishments we have made in such a short period of time. We have invested heavily in building the foundation to drive our Company forward at an unparalleled pace,” said Brian Athaide, TGOD’s CEO. “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,” continued Athaide.
We have reported in these pages about the partnership with Epican in Jamaica, the Denmark joint venture with Queen Genetics/Knud Jepsen A/S (“Knud Jepsen”) based in Hinnerup, Denmark, although anecdotal reports from other companies that operate in these countries in Europe suggest that there is little money to be made, due to government health insurance policies and bureaucracy . “TGOD’s business plan calls for operations in 12 countries on three continents by the end of 2018 with a focus on Europe and Latin America. We continue to make strategic additions across all divisions of the Company to execute on our expansion plans,” continued Reider.
The stock closed Friday at $5.08, giving the company a valuation in excess of a billion dollars CDN.