Shares of The Green Organic Dutchman (TGOD) (TSX:TGOD,OTCQX:TGODF) sank on Wednesday (October 9) after the company announced it is looking into alternative means of financing to complete two of its growing facilities.

The Ontario-based cannabis producer said it has been seeking funding from commercial banking facilities through equipment leasing. Due to recent market conditions, however, “those sources of financing have been unavailable on acceptable terms within the timeframes required.”


The company’s share price sank 22.5 percent to C$1.34 when the market opened on Wednesday from a closing price of C$1.73 on Tuesday (October 8).

The market conditions TGOD referred to have affected the entire cannabis sector in both Canada and the US. This past summer was defined by high investor expectations and disappointing results, industry scandals and growing concerns about the safety of vaping products.

Since May, the North American Marijuana Index has dropped in value by over 50 percent.

TGOD told investors it may readjust the construction schedule for its upcoming facilities in Ancaster, Ontario, and Valleyfield, Quebec, if it can’t secure the necessary funding, and warned that there isn’t a guarantee the review will help find any new money.

Construction at Ancaster is “largely” complete, TGOD told investors, and the facility has all of the licensing from Health Canada necessary to grow cannabis. Any funds the firm does come into will be used to accelerate commercial production to boost revenues.

TGOD CEO Brian Athaide told BNN Bloomberg that the company is looking for C$160 million in bridge financing to finish off the facilities.

Athaide added that the company’s financial woes started after two asset-backed loans TGOD originally had in place fell through. This came after the company’s bank decided to wait to finance the deal until after TGOD was operational and had begun profiting from cannabis sales.

TGOD recently entered the recreational cannabis market with its first shipment of product to the Ontario Cannabis Store in August of this year.

Athaide said he hopes to secure a loan with a non-traditional lender, and added that the company expects to be cash flow positive by mid-2020, allowing it to refinance its loans.

The cannabis producer has had its share of struggles recently. In September, Aurora Cannabis (NYSE:ACB,TSX:ACB) sold off C$86.5 million worth of its remaining shares of TGOD.

The sale boded well for Aurora, boosting its share price, while TGOD shares took a hit after the news.

The company is debt free and has C$56.7 million in cash available in Canada, C$40.2 million of which is restricted cash set aside for capital expenditures. In August, TGOD reported C$2.9 million in revenue for the second quarter of this year, as well as a net loss of C$16.6 million due to setting up product commercialization in Canada and internationally.

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

Securities Disclosure: I, Danielle Edwards, hold no direct investment interest in any company mentioned in this article.

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

 Canopy Growth Corporation (TSX: WEED) (NASDAQ: CGC) (“Canopy Growth” or “the Corporation”) announced today that EVP & CFO Mike Lee will be participating in a fireside chat at the BofA Securities Virtual Consumer & Retail Technology Conference on Thursday, March 11, 2021 at 9:30am ET .

Keep reading... Show less

Hill Street Beverage Company Inc. (TSXV: BEER) (“Hill Street” or the “Company”). The Company announces that further to its press release dated March 2, 2021, it has obtained TSX Venture Exchange approval to extend the closing date of its previously announced private placement of units (“Units”) until April 7, 2021. Each Unit is comprised of one (1) common share and one (1) warrant, exercisable for one common share at price of $0.11 per share, for a period of three (3) years from the date of Closing. The Company applied to extend the date of closing to allow a greater number of interested investors to participate.

For more information regarding the Company or the offering, please contact ir@hillstreetbevco.com, or

Keep reading... Show less