The Green Organic Dutchman (TSX: TGOD) this morning announced its intention to off-load its Valleyfield, Quebec facility in the face of “changing market conditions.” The company has engaged a commercial real estate advisor for the sale of the facility.
The move is being framed as a plan to “monetize under-utilized assets,” with the company considering all possibilities for the site, including the partial sale of assets, the focus of which is the hybrid main greenhouse. The company indicated that the change to the “value-added part” of the production chain no longer requires it to own such large facilities.
The move is expected to lower the firms operating costs, and enable the company to potentially reduce debt, reinvest in growth opportunities and turn its eye to “considerations in the US.” Opportunities for export are expected to be satisfied with existing production capacity at Ancaster, while additional biomass needs will be acquired from other producers.
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TGOD reportedly remains committed to maintaining a portion of its operations, including cannabis 2.0 product manufacturing, within Quebec.
TGOD last traded at $0.415 on the TSX.
Information for this briefing was found via Sedar and The Green Organic Dutchman. The author has no securities or affiliations related to this organization. Not a recommendation to buy or sell. Always do additional research and consult a professional before purchasing a security. The author holds no licenses.
