The Green Organic Dutchman (TSX: TGOD) announced their second quarter results this evening, with revenues of $2.89 million and a net loss of $16.6 million. With a market capitalization of approximately $1.00 billion, the producer has a long way to go before it suits its valuation.
Primary accomplishments for the firm during the quarter, as per the news release, is the near completion of its Hamilton facility as well as Stage 1 of its Valleyfield, Quebec facility. Total investment into the facilities over the quarter amounted to $53.1 million, out of a total $100.9 million on a year to date basis.
Revenues over the quarter came primarily from HemPoland, which recognized $2.878 of the total $2.9 million seen by The Green Organic Dutchman over the quarter. Cannabis sales amounted to a total of $18,000 over the second quarter. Notably however, the firm commenced its first cannabis sales through a program it calls the “Grower’s Circle”, which saw a select number of recipients receive specialized packages of TGOD product.
The Organic Dutchman also guided towards recreation sales finally coming into play following their recent expansion of operations in Hamilton, with product expected to ship to the OCS this week.
With double digit quarterly growth in Europe and construction nearing completion in Canada, the team continues to deliver on our ambitious business plan with executional excellence. We now have our first purchase order from the OCS in hand and look forward to shipping our first recreational sales this week.Brian Athaide, CEO of TGOD
Total cash on hand came in at $68.71 million as of June 30, compared to $213.54 million as of January 1, 2019. Funds have primarily gone towards the advancement of both the Valleyfield and Hamilton facilities. The Green Organic Dutchman also reported $4.22 million inventories, which has increased marginally since the start of the year.
Total operating expenses came in at $18.37 million, with general and administrative expenses accounting for $8.78 million, and share-based compensation accounting for a further $4.43. Sales and marketing was the third largest expenditure over the quarter, coming in at $3.93 million.
On a per gram basis, The Organic Dutchman’s selling price per gram reduced significantly from the start of the year, when they were selling product between a range of $3.00 to $10.75 per gram. Over the course of the second quarter, the average selling price on a per gram basis came in at $2.00 to $7.14.
The Green Organic Dutchman closed today’s session at $3.64, up 2.25% on the day.
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.
As the founder of The Deep Dive, Jay is focused on all aspects of the firm. This includes operations, as well as acting as the primary writer for The Deep Dive’s stock analysis. In addition to The Deep Dive, Jay performs freelance writing for a number of firms and has been published on Stockhouse.com and CannaInvestor Magazine among others.