In the battle to capture market in the exploding legal marijuana space, companies are exploring all ways to get their product into the hands of consumers, including delivery services.
The Green Organic Dutchman (TSX:TGOD)(OTCQX:TGODF) is also pursuing that model, saying Thursday morning that it has teamed up with Shopify (TSX:SHOP)(NYSE:SHOP) to build an e-commerce solution for global delivery of medical and recreational marijuana where permitted by law.
Shopify is a go-to name for cloud-based ecommerce technology, with more than 600,000 merchants using its platform as of August 2017, many of which sell their products simultaneously on Amazon.com (NASDAQ:AMZN) from their Shopify store thanks to a deal struck last year between the two ecommerce giants. Shopify knows about delivery too, partnering in April with Deliv to offer same-day delivery to Shopify retailers.
The Toronto-based cannabis company sees its fellow countryman (Shopify is based in Ottawa) as the answer to building its worldwide brand after working together on TGOD partner Epican Medicinals in Jamaica, a growth area of focus for TGOD.
Shopify not only supplied the point-of-sale system for Epican, but is also presently developing a pre-registration system for medical marijuana patients in the country. From its headquarters in Canada, The Green Organic Dutchman is fully funded to build 1.38 million square feet of cannabis cultivation facilities across Ontario, Quebec and Jamaica.
Saying her company looks forward to continue its work with TGOD, Loren Padelford, vice president and general manager at Shopify commented in today's news release, "Our platform will allow TGOD to rapidly scale and capitalize on emerging cannabis opportunities in a safe, secure, and reliable way."
Traders don't seem particularly excited about the news. Toronto-listed shares of TGOD are down 2.4% at $5.37 as of about 11:30 AM EDT.
U.S.-listed shares have slipped 3.4% to $4.09. The Canadian stock has experienced a sensational rise since its initial public offering in May, when shares dipped to $3.50 before soaring as high as $8.28 in June.
Since, TGOD has lost some momentum along with many other so-called "pot stocks" over the last couple months following Canada finally announcing the legalization of adult-use marijuana beginning in October.
Widely expected, the official announcement apparently triggered a "sell-the-news" response.
