The Green Organic Dutchman Holdings Ltd (TSX:TGOD) (OTCQX:TGODF) announced Wednesday that it ended 2018 with a strong balance sheet and liquidity, including C$263.5 million in cash and restricted cash, to continue to bankroll its expansion and international growth.
The company was well-capitalized having completed the largest Canadian cannabis IPO on May 2, 2018, raising gross proceeds of $132.3 million, including overallotments.
Among other financial highlights it also completed private placements worth $77.6 million in gross proceeds and received support from the investor community with $63.4 million in warrants exercised.
The company also completed two bought-deals worth $101.2 million in gross proceeds.
The Green Organic Dutchman has made significant progress towards the completion of its facilities in Hamilton, Ontario and Valleyfield, Quebec. The company said it accelerated construction spending at the Hamilton and Valleyfield sites to $96.8 million throughout the year.
It increased total planned global production capacity to 219,000 kgs with improved design and engineering updates at its Canadian facilities.
"2018 has been a pivotal year for the company," said Green Organic Dutchman CEO Brian Athaide. "The company has raised substantial capital and grown the team with the addition of deep expertise and exceptionally skilled professionals to both management and our board. We are very excited for 2019 and remain focused on delivering on the company's operational plans of producing and bringing to market high quality, premium certified organic cannabis."
The company said it experienced a loss from operations of $18.1 million in the fourth quarter ($44.5 million for the full 2018 fiscal year) as a result of ramping up operations in preparation for commercial production in 2019.
Expanding global footprint
The company completed the acquisition of HemPoland on October 1, 2018, for approximately $18.6 million and it contributed $1.9 million in revenue for the fourth quarter.
The company also had a string of international successes in forging key partnerships:
- It created a joint venture with LLACA Groupo Empresarial for distribution of medical cannabis into 7,600 pharmacies and stores in Mexico.
- Formed joint venture with Knud Jepsen in Denmark to focus on production of cannabis and cannabis oils and develop and patent innovative cannabis genetics
- Opened the first dispensary, with its partner Epican Medicinals, in Kingston, Jamaica
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.
Shares closed 7.5% higher to C$5.48 Tuesday in Toronto, while US-listed shares jumped nearly 8% to US$4.12 on the OTC Markets.
Contact Uttara Choudhury at [email protected]