Shares of a Canadian cannabis producer dropped mightily on Wednesday (March 11) following the release of its latest quarterly and annual results.

The Green Organic Dutchman Holdings (TGOD) (TSX:TGOD,OTCQX:TGODF) posted heavy losses for both Q4 and the full 2019 year, leading to a drop off in the market for the producer.


Near the end of the trading session on Wednesday, the company was trading at C$0.34, representing a decline in value of 21.59 percent.

In a release, Brian Athaide, CEO of TGOD, recognized the challenges for the Canadian marijuana investment market, but indicated to shareholders that he anticipates to see “continued sales momentum” in 2020 thanks to the eventual launch of TGOD’s first cannabis 2.0 products.

Cannabis 2.0 refers to Canada’s second phase of legalization, which covers ingestible items.

Despite that future optimism, the company reported a net loss of C$144.75 million in the most recent quarter, a new low, and a net loss of C$195.75 million for the whole year.

When it comes to its revenue, TGOD reported C$3.25 million for Q4 and C$11.16 million for the year.

Athaide told investors and analysts during a conference call that last year the company was “largely a construction company,” but it is now on the path to see substantial revenues.

Discussing recent cuts, the company told shareholders it now counts about 200 employees in total, with 120 of those working in its facilities.

Due to current market conditions, TGOD is revising both its near- and long-term forecasts. Alongside this revision the company is letting go of its ambitious plans for expansion in Jamaica.

TGOD attempted to reassure investors regarding some of its non-cash impairment charges:

As market conditions improve, and should the Company decide to bring additional cultivation zones online which would increase the expected recoverable amount of future cashflows, the non-cash impairment charges may be reconsidered and be reversed as permitted by its accounting framework.

The company said it expects to become cash flow positive before the end of 2020.

Like many others in the cannabis stock universe, TGOD shares have faced a sharp decline recently. Over a one year period, the company has dropped in value by over 90 percent.

stock chart for TGOD

Don’t forget to follow us @INN_Cannabis for real-time news updates!

Securities Disclosure: I, Bryan Mc Govern, hold no direct investment interest in any company mentioned in this article.

American cannabis sales hit US$17.5 billion in 2020, a research group’s new study shows.

Meanwhile, a Canadian cannabis producer began offering CBD beverages in the US, another move that shows how interested Canadians are in the overall US cannabis market at the moment.

Keep reading... Show less

An Emerging Markets Sponsored Commentary

Some pretty important news out of health and wellness; beverage and natural products company BevCanna Enterprises Inc. (CSE:BEV, Q:BVNNF, FSE:7BC) this week. For those of you following the Company with us, stay tuned.

Keep reading... Show less

As investors continue to prioritize cannabis opportunities in the US, market watchers expect mergers and acquisitions (M&A) to play a role in the future for Canadian companies.

A consolidation trend has been expected in the Canadian cannabis space for some time now based on the size of the market compared to the number of operations in the country.

Keep reading... Show less

The product will include polyphenols known to have significant health benefits.

BioHarvest Sciences Inc. (CSE: BHSC) (“BioHarvest” or the “Company”) has reached an important milestone in its development program of additional Nutraceuticals. The olive-based Nutraceutical product scheduled for market availability in the second half of 2022 will contain the following unique matrix of polyphenols: hydroxytyrosol, trosol, and verbascoside. These compounds are the major polyphenols in naturally grown olives and are responsible for the high antioxidant activity of olives and olive oil. Importantly, the BioHarvest olive-based Nutraceutical product will provide all the benefits of olives and olive oil with a low calorie count per serving.

Keep reading... Show less

Cresco Labs (CSE:CL) (OTCQX:CRLBF) (“Cresco” or the “Company”), one of the largest vertically integrated multistate cannabis operators in the United States, announced today that it will report financial results for the fourth quarter and full year ended December 31 st , 2020 on Thursday March 25 th , 2021 before the market opens.

The Company will host a conference call and webcast to discuss its financial results and provide investors with key business highlights on Thursday March 25 th , 2021 at 8:30am Eastern Time (7:30am Central Time).

Keep reading... Show less