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.

Lexaria Bioscience Corp. (NASDAQ:LEXX)(NASDAQ:LEXXW)(CSE:LXX) (the “Company” or “Lexaria”), a global innovator in drug delivery platforms, is pleased to announce the appointment of Mr. Al Reese, Jr., to its Board of Directors

Mr. Reese has over 40 years experience in public and private businesses including as CFO of a formerly Nasdaq-listed energy company where he arranged finance transactions totaling over $10 billion dollars during his 20-year tenure. Mr. Reese was a Director and Chairman of the Audit Committee of a community bank in Texas for ten years until such time as it was acquired by a larger banking group in 2018.

Keep reading... Show less

Mexico looks to be closer than ever to cannabis reform, with the country releasing its regulation plans to make the drug legal in medical settings.

Meanwhile, despite the financial hardships seen recently in the Canadian cannabis market, CEOs in the country are still receiving top dollar, as per a new study.

Keep reading... Show less

Not for Distribution to United States Newswire Services or for Dissemination in the United States

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 the pricing of its previously announced best efforts overnight marketed offering (the “Offering”) of subordinate voting shares (the “Offered Securities”) of the Company at a price of C$16.00 per share for a total gross proceeds of approximately US$125 Million. The issue price represents a 3.3% discount to the last close of the Company’s subordinate voting shares traded on the Canadian Securities Exchange as of January 14, 2021. 100% of the Offering is expected to be purchased by a total of seven new and existing institutional investors, including current shareholder, Wasatch Global Investors.

Keep reading... Show less

Wall Street Reporter, the trusted name in financial news since 1843, has published reports on the latest comments and insights from leaders at: Tilray, Inc. (NASDAQ: TLRY), Icanic Brands (OTC: ICNAF) (CSE: ICAN) Red Light Holland (OTC: TRUFF) (CSE: TRIP) and Aphria, Inc. (NASDAQ: APHA).

Investors are cheering new and expected legislation which is opening new market opportunities for both cannabis and psychedelics globally. Innovation in premium branding, growing technologies, manufacturing, with operational execution are key, in the drive towards profitability. Wall Street Reporter highlights the latest comments from industry thought leaders in cannabis and psychedelics:

Keep reading... Show less

Lexaria Bioscience Corp. (NASDAQ:LEXX)(NASDAQ:LEXXW)(CSE:LXX) (the “Company”) today announced the closing of its previously announced underwritten public offering (the “Offering”) of 1,828,571 units, each unit consisting of one share of common stock and one warrant to purchase one share of common stock at a public offering price of $5.25 per unit (all prices in US$). The warrants have an exercise price of $6.58 per share, are immediately exercisable and will expire five years following the date of issuance. In connection with the Offering, the underwriter exercised in full its option to purchase an additional 274,285 shares of common stock and additional warrants to purchase 274,285 shares of common stock. The gross proceeds from the Offering were approximately $11.04 million, before deducting underwriting discounts and estimated offering expenses. No securities were offered or sold in Canada, including through the CSE or any other trading market in Canada

H.C. Wainwright & Co. (“Wainwright”) acted as the sole book-running manager for the Offering and is a non-related party to the Company.

Keep reading... Show less