The Green Organic Dutchman (TSX: TGOD) this morning reported that it will be releasing its first quarter financial results on May 26, 2020 following the close of markets. Furthermore, the company identified that it also anticipates asset impairments in the range of $50 to $60 million.
The firm this morning released a first quarter business update with its earnings announcement, which in the cannabis sector typically means that there is something that the company is trying to hide within the release. This time was no different, with it being revealed that TGOD will be conducting non-cash asset impairments of at least $50 million within its first quarter 2020 financials.
The impairment, as per the company, is intended to “reflect the uncertainty created by the pandemic, including the evolution of market demand, the temporary cessation of operating activities at its Quebec Facility and the reduction of activity in Jamaica.” The impairment will be to the book value of its global operations following a test that the company is required to perform under IFRS.
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The firm expects the resulting book value of its global assets to be in the neighbourhood of $200 million. The impairment follows the charge taken by the company in its last quarterly financials, wherein the company impaired its assets by $123.4 million due to reduced expansion plans.
The Green Organic Dutchman last traded at $0.26 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.
