When The Green Organic Dutchman (TSX: TGOD) came public last month in what was arguably the most highly anticipated IPOs in Canada so far this year, things went well with a record-setting raise of $132 million+. Then the stock looked like it was going to stumble for the next couple weeks before absolutely mushrooming from a May 9 low of $3.50 to $8.26 on June 6. Profit taking is still happening to start the new week, but the pot grower released more good news on Monday to bodes well for its future.
TGOD’s wholly-owned subsidiary, Medican Organic Inc., received its cultivation license from Health Canada for its breeding facility in Salaberry-de-Valleyfield, Quebec. The plan is to use the Valleyfield facility to engineer and grow proprietary, organic strains of cannabis and cannabis seeds.
Valleyfield is turning into a true marijuana campus for TGOD. Spanning 72 acres will soon be home to TGOD’s sprawling 820,000 square-foot state-of-the-art hybrid grow facility. Once at capacity, the greenhouse will be able to produce 116,000 kilograms (255,736 pounds or 127 tons) of premium cannabis each year.
As the company’s name implies, all their marijuana products will be organic (free of chemicals, additives, dangerous fertilizers, etc.).
Medican Organic intends to bring cutting edge technologies to seed development and, subsequently, pot production under its new license. This means not just creating and standardizing different varieties with regards to flavor, strength, CBD volumes, etc., but also using technology to create strains that are resistance to disease and pests and shaving flowering time to expedite growth and increase annual yields.
Because marijuana has been illegal for so many years, the areas of R&D and genetics have gone grossly underserved, creating an opportunity for TGOD.
Maybe investors had already baked in the value of the new license during part of the red-hot run the last couple weeks. Whatever the case may be, shares of TGOD closed down Mondays session 1.44% at $7.55.
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