TORONTO, June 21, 2018 (GLOBE NEWSWIRE) -- The Green Organic Dutchman Holdings Ltd. (the "Company" or "TGOD") (TSX:TGOD) (OTCQX:TGODF) is pleased to announce that it has decided to add a 287,245 sq ft purpose-built facility on its Valleyfield property capable of producing 40,000 kgs of premium organic cannabis. This facility will be dedicated to TGOD's Beverage Division and increases the Company's fully-funded capacity to 170,000 kgs.
This newly dedicated cultivation building is being constructed to support TGOD's previously announced Beverage Division Global-Strategic-Launch-Into-the-Beverage-Industry. This includes a state-of-the-art manufacturing campus designed to conduct strain-specific studies, develop organic IP, and create consumable optimized CBD / THC strains. Due to operating efficiencies within the 72.4 acre Valleyfield property, permits and cultivation licenses granted, the Company anticipates a significantly reduced construction timeline and budget. The Company will build this facility using excess cash raised in its IPO and subsequent bought deal financings. With the synergies to be realized on the existing 72.4 acre Valleyfield property, the construction timeline and unit costs for this additional building enhance the overall economics of the entire facility.
TGOD's Beverage Division team has a unique understanding of the strict disciplines required for the large-scale, lean-manufacturing of base ingredients used in a multitude of higher margin products. The process begins with TGOD's breeding facility, moves to the purpose-built cultivation, followed by the state-of-the-art 40,000 sq. ft. Innovation Centre. TGOD's beverage production facility will fill the market's current void and supply premium organic cannabis for R&D specific development in products such as edibles and beverages.
"With the legalization of cannabis announced on June 20th, and Premier Justin Trudeau setting the legalization date of October 17th, the path is paved. The time is now to dedicate infrastructure, services and expertise to developing proprietary products. This is just another step for TGOD in its business plan of creating a distribution hub for large-scale beverage and edible products which can be introduced in Canada and internationally," said Csaba Reider, TGOD's President.
"We believe that the beverage and edible market will be the largest single segment of the cannabis market. Cannabis, as the base ingredient, makes these products possible. The medicinal and recreational market for CBD and THC will only increase over time and starting with an organic input is the most important aspect to developing these higher margin products," continued Mr. Reider.
This facility is fully funded and provides TGOD with a combined funded capacity of 170,000 kgs across four facilities in two countries.
"With the successful vote on Bill C-45 by the Senate, and the fast-approaching adult-use recreational market, we feel that bringing this facility into production quickly will allow TGOD to capture market share and establish our brand. This facility will allow TGOD to develop strains and IP specifically for beverage manufacturing which can be brought to market in Canada and through our international partnerships," Robert Anderson, TGOD's Co-Chairman and CEO stated.
"Our unique organic approach to making major investments into consumables will be a major differentiator in the cannabis market. Our early investments today will allow TGOD to be a leader by taking innovations created in Canada to the rest of the world. We look forward to our expansion into several continents and multiple countries with best in class medicines and products," Mr. Anderson added.
ABOUT THE GREEN ORGANIC DUTCHMAN HOLDINGS LTD.
The Green Organic Dutchman Holdings Ltd. is a research & development company licensed under the Access to Cannabis for Medical Purposes Regulations ("ACMPR") to cultivate medical cannabis. The Company carries out its principal activities producing cannabis from its facilities in Ancaster, Ont., pursuant to the provisions of the ACMPR and the Controlled Drugs and Substances Act (Canada) and its regulations.
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 funded capacity of 170,000 kg of cultivation facilities in Ontario and Quebec 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.
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 the future legalization of recreational cannabis and cannabis-infused products in Canada, statements about future research, development and innovation by the Company, statements about the offering of any particular products by the Company and statements regarding the future performance of the Company. Forward-looking statements are frequently characterized by words such as "plan", "continue", "expect", "project", "intend", "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 and other factors that could cause actual events or results to differ materially from those projected in the forward-looking statements. 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 TSX nor its 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.