- Centralizes cultivation operations at Ancaster
- Reduces workforce at Valleyfield
- Implements broad salary reduction for management and administration
- Sees strong interest in recent launch of Infusers
TORONTO, March 25, 2020 /PRNewswire/ - The Green Organic Dutchman Holdings Ltd. (the "Company" or "TGOD") (TSX:TGOD) (US:TGODF), a leading producer of premium certified organic cannabis, announced today that, due to market conditions, it is adapting operations and aggressively reducing costs.
Valleyfield Cost Savings
The Company has postponed the start up of its Valleyfield facility in order to centralize cultivation operations at Ancaster. The Ontario facility is able to produce larger volumes than initially anticipated, enabling the Company to delay cultivation operations in Valleyfield saving costs and capital. The Company has temporarily laid off the majority of its Valleyfield employees and intends to restart operations there later in the year. Ancaster is not impacted and continues to grow and harvest premium organic cannabis for the recreational and medical markets.
This change does not impact TGOD's timeline for the launch of its remaining Cannabis 2.0 products, with Infusers already launched and organic teas and vapes still on track to become available at the end of next month.
Ancaster Processing Facility
TGOD expects to imminently receive its licence amendment from Health Canada for the processing facility at Ancaster. Once it is received, the Company will be able to automate many of its processes reducing costs and further accelerating production.
Cost Reduction Measures
As it continues to work towards becoming EBITDA and operating cash flow positive later this year, beyond the cost savings generated with the Valleyfield operation postponement, TGOD has undertaken another series of measures to aggressively reduce costs. This includes:
- Temporary salary reductions of 20% for salaried employees and 30% for certain executives
- A freeze on all non-essential recruitment and consultancy work
- Working with suppliers to identify further cost savings and efficiencies
"Multiple factors, most particularly the COVID-19 pandemic, are contributing to an environment in which we must be extremely prudent with how we manage our cost structure. These are unprecedented times, and the situation continues to evolve. With the support and unity I have seen from our employees, partners and stakeholders, I am very confident that TGOD can tackle this challenge and come out much stronger," commented Brian Athaide, CEO of TGOD. "We have seen very strong consumer and medical patient feedback from our recent TGOD Infusers launch and are looking forward to having them available in more stores quickly. These along with our upcoming additional 2.0 products are very unique and deliver superior consumer experiences which will help further differentiate and build our TGOD organic brand positioning," continued Athaide.
About The Green Organic Dutchman Holdings Ltd.
The Green Organic Dutchman Holdings Ltd. (TSX: TGOD) (US‐OTC: TGODF) is a premium certified organic cannabis company focused on the health and wellness market. Its certified‐organic cannabis is grown in living soil, as nature intended. The Company is committed to cultivating a better tomorrow by producing its products responsibly, with less waste and impact on the environment. Its two Canadian facilities are being built to LEED certification standards and its products are sold in recyclable packaging. In Canada, TGOD plans to expand its product portfolio by launching a series of next‐generation cannabis products such as organic teas, infusers and vapes. Through its European subsidiary, HemPoland, the Company also distributes premium hemp CBD oil and CBD-infused topicals in Europe. By leveraging science and technology, TGOD harnesses the power of nature from seed to sale.
TGOD's Common Shares and warrants issued under the indentures dated November 1, 2017 and December 19, 2019 trade on the TSX under the symbol "TGOD", "TGOD.WT" and "TGOD.WS", respectively. For more information on The Green Organic Dutchman Holdings Ltd., please visit www.tgod.ca.
This news release includes statements containing certain "forward‐looking information" within the meaning of applicable securities law ("forward‐looking statements"). Forward looking statements in this release includes, but is not limited to, statements about cost reductions, production volumes, the ability of the Company to achieve certain operating cashflow conditions, statements about the timing of the licence amendment for Ancaster's processing facility, statements about the timing of restarting operations at its Valleyfield facility, statements about the timing of launch of the Company's cannabis 2.0 products, and statements regarding the future performance of the Company. Forward‐looking statements are frequently characterized by words such as "plan", "continue", "expect", "project", "intend", "should", "believe", "anticipate", "estimate", "may", "will", "potential", "proposed" and other similar words, or statements that certain events or conditions "may" or "will" occur. These statements are only predictions. Various assumptions were used in drawing the conclusions or making the projections contained in the forward‐looking statements throughout this news release. Forward‐looking statements are based on the opinions and estimates of management at the date the statements are made and are subject to a variety of risks and uncertainties (including market conditions) and other factors that could cause actual events or results to differ materially from those projected in the forward‐looking statements, including those risk factors described in the Company's most recently filed Annual Information Form available on SEDAR. The Company is under no obligation, and expressly disclaims any intention or obligation, to update or revise any forward‐looking statements, whether as a result of new information, future events or otherwise, except as expressly required by applicable law.
Neither the TSX nor the TSX's Regulation Services Provider (as that term is defined in the policies of Toronto Stock Exchange) accept responsibility for the adequacy or accuracy of this release.
SOURCE The Green Organic Dutchman Holdings Ltd.