The Green Organic Dutchman Holdings Ltd (TSX:TGOD) announced last week that its facility in Hamilton, Ontario received a license from Health Canada to sell cannabis oil. It was a year ago that The Company received its license to produce cannabis oil. That’s when it began work on creating a cutting-edge system and process that would produce a high-quality oil that would also be environmentally friendly.
The Company has been trying to position itself as a high-quality grower whose focus is on quality. TGOD has even taken steps to make sure that its products are premium and organic, having them certified by ProCert. It’s important as it adds some credibility to The Company’s products and allows consumers to have some trust in TGOD’s processes. With many different producers to choose from, having certification helps put some substance behind The Company’s goals and claims that other competitors may be lacking.
TGOD also claims its processes are very customizable and can create a variety of different types of oils, giving customers many different options to choose from. However, TGOD knows that with cannabis oil being popular with patients, quality and safety are of the utmost importance.
– Rav Kumar, Chief Science Officer of TGOD
So far, the results have been very encouraging for TGOD. In March, The Company’s began selling domestically with the Growers’ Circle, which is a group of patients located across the country, being the first to have access to TGOD’s certified-organic flower. The Company says that the feedback from Growers’ Circle has been “extremely positive.”
TGOD also announced in its press release that Unite Organic Cannabis Oil, which is from a high-potency THC strain, will be shipped out later in the month.
Bigger plans on the way for ‘cannabis 2.0’
While it was good news for TGOD to get the license last week, The Company has much loftier goals ahead:
This step will assist TGOD in transforming our premium quality organic raw material into a variety of higher-margin cannabis products which is core to our business plan, providing us with the opportunity to bring to market innovative and novel products, including beverages and edibles, once regulations permit. Cannabis 2.0 is rapidly approaching, and we will be ready
– Brian Athaide, Chief Executive Officer of TGOD
It’s going to be a challenge for TGOD to prove that its product is high quality while also being able to keep prices low and competitive. We’ve already heard concerns that cannabis prices are simply not competitive enough to prevent the black market from flourishing. The edibles market is going to be very competitive and cannabis companies have been tight-lipped on any progress they’ve made thus far.
Initially, it was hype in edibles that put TGOD on the map as investors got excited when The Company announced it was going to license a technology that would make it quicker for edibles to be absorbed into the bloodstream. However, the hype around TGOD has started to fall and with limited sales and rising losses, it’s been hard for the The Company to generate the same type of excitement.
Last week, however, it did show some signs of life with the stock up 8% thanks to this announcement.