#TheGreenOrganicDutchmanLtd.

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The Green Organic Dutchman Ltd. – LP Spotlight

First Cannabis Company in Canada to Go Organic – LPC

The Green Organic Dutchman Ltd. is a vertically integrated cannabis cultivator, processor, and producer in Ontario and Quebec. As the name suggests, The Green Organic Dutchman Ltd. is a fully organic company, right down to its LEED-certified facilities. This approach has added costs and time to their construction plans. But it’s an approach worth pursuing, said Shane Dungey, vice-president of investor relations. “As an organic producer, our mantra has always been to start organic and end organic, beginning with our growing process through to store shelves. We have never compromised on quality or yield – or the principles we stand by,” Dungey said. Facilities in Ancaster, Ont. and Valleyfield, Que. are both progressing. However, The Green Organic Dutchman Ltd. was forced to cut yield predictions for 2020 due to a number of factors. The company announced in a press release that it needs $70-$80 million between now and its Q2 2020 to gain positive cash flow. It forecasts that it will produce between 20,000 kg and 22,000 kg of cannabis between its two facilities in 2020. It also plans to launch a line of organic teas, shots, chewables and ready-to-drink beverages in December 2019 with the legalization of edibles. The company uses organic cannabinoid dissolvable powder to make these products.

The Green Organic Dutchman Ltd. a Bellwether for Canadian Cannabis – LPC

However, the organic edible market may not be as big as once thought – at least in the short term. In many ways, The Green Organic Dutchman Ltd. represents what’s happening in the cannabis industry today. Retail cannabis challenges have been an issue from the start. This is not surprising – building a billion-dollar industry overnight will have challenges. But it has forced the company to change its business plan. "With the current Canadian legal market being smaller than initially anticipated, mainly due to a slow rollout of retail locations in key provinces, we believe that our revised plan will allow The Green Organic Dutchman Ltd. to right-size its production to capture the organic segment,” said CEO Brian Athaide. The plan will allow the company to expand its operations as more retail locations open, he added. What won’t change is its plan to remain organic. “Throughout that process we have also achieved both Ecocert and Pro-Cert certifications, placing us a step ahead in providing healthy premium cannabis products,” Dungey said. This editorial content from the LPC News Team provides analysis, insight, and perspective on current news articles. To read the source article this commentary is based upon, please click on the link below. Click here to view full story at business.financialpost.com Read the full article