The Green organic Dutchman (TSX: TGOD) announced this morning that it has finally received a license to begin cultivation at its Valleyfield, Quebec facility. While small in size, the 46,500 square feet of licensed cultivation is the beginning of cannabis growth at the Quebec facility.
Total cultivation from this space is expected to be rather small. TGOD was rather vague in its explanation, however a total of two zones were licensed for cultivation. The firm identified that four more zones remain on track to be submitted for licensing, and that in total the six rooms will have an annual capacity of 10,000 kilograms of cannabis per annum once licensed, which is inline with recently revised production guidance for 2020. From this complicated explanation, we can deduce that Valleyfield currently has an approximate capacity of 3,300 kilograms per annum.
Once product is harvested at the Valleyfield, Quebec facility, it is anticipated to be shipped to The Green Organic Dutchman’s Ancaster, Ontario facility.
The firm also concurrently announced that it has received its first purchase order from the BC Liquor Distribution Branch. While the firm was quick to highlight that it now is able to distribute product to the 527 stores across British Columbia, no figures on the size of the purchase order itself were provided.
The Green organic Dutchman lasted traded at $0.95 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.
