The Green Organic Dutchman Holdings Ltd. (TSX:TGOD) has been trading on the TSX barely a month and its share price has already doubled. And while there have been positive developments in the industry lately with Bill C-45 passing in the Senate last week, many pot stocks have actually declined.
The share price started to explode toward the end of May when the company announced that it had entered into an agreement to license RIPPLE SC and other technologies relating to infusing cannabis into food and beverages.
The proprietary technology is still patent-pending and could prove to be very valuable when the edible market takes off as it gets cannabis into the bloodstream within as quickly as 15 minutes and could last as long as four hours.
While this certainly looks to the be the catalyst behind the start of Green Organic’s ascent in price, it’s likely other factors have weighed into the price as well, including investors buying based on technical indicators.
The company also has likely benefited from the partnership it developed with Aurora Cannabis Inc (TSX:ACB), which has invested $78 million in Green Organic, for a 17.5% ownership. This agreement adds legitimacy to the company’s operations and investors will undoubtedly see a lot of potential with Green Organic working with one of the biggest names in the industry.
The big question is how much higher the stock can go from here. If the patent goes through then Green Organic could have a lot of upside, especially once edibles are legalized, which is expected to happen sometime next year.
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