TORONTO, January 25, 2019 /PRNewswire/ --
The Green Organic Dutchman Holdings Ltd. (the "Company" or "TGOD") (TSX: TGOD) (US: TGODF) is pleased to announce, further to its news release on June 27, 2018, it has entered into a definitive Agreement (the "Definitive Agreement") with Queen Genetics/Knud Jepsen A/S ("Knud Jepsen") to establish two 50/50 joint ventures; the first for the purpose of producing commercial cannabis and cannabis oils (the "Production JV") and the second for developing and patenting innovative and commercially valuable elite cannabis genetics (the "Genetics JV"). The parties will form both joint ventures in Denmark with a goal to expand the Production JV into future low-cost European jurisdictions.
The Definitive Agreement outlines TGOD and Knud Jepsen's launch of a premium organic European bulk cannabinoid production platform where TGOD will have the exclusive right to all cannabis-related production from the JV, through a guaranteed offtake agreement at a pre-determined price relative to the production cost of the JV. Further, the Production JV will have exclusive access to all intellectual property including elite cannabis genetics developed within the Genetics JV. Knud Jepsen will be responsible for the day-to-day operations of the JV and TGOD will leverage Knud Jepsen's years of horticulture experience and science and R&D division to accelerate commercial operations in Denmark and throughout Europe.
TGOD's differentiated approach to organic cannabinoid production combined with Knud Jepsen's large-scale commercial horticultural and globally integrated seed-to-sale operations will accelerate TGOD's global initiatives. The European bulk cannabinoid production platform paired with the Genetics JV will generate value-added formulations and products for established European and international sales and distribution channels.
The first phase of the JV will consist of a Hinnerup, Denmark based 2,500 kg pilot program with the previously contemplated (See June 27, 2018 news release) 25,000 kgs of production in Denmark, shifting to various lower cost production jurisdictions throughout Europe.
"This JV is incredibly important to furthering TGOD's presence in Europe," commented Brian Athaide, Director and CEO of TGOD. "Knud Jepsen is a remarkable partner, having over 80 years of experience in R&D and cultivating plants in millions of square feet. As we roll out multiple phases of our JV and plan to increase the partnership to multiple countries across Europe, leveraging Knud Jepsen's expertise as operators, and our expertise in cannabis will be critical to TGOD's expansion throughout the continent. The partnership will allow TGOD to focus on building global sales and distribution channels, developing proprietary and patentable IP, and furthering brand equity," continued Athaide.
Founded in 1939, Knud Jepsen has 80 years of experience in all areas of horticulture ranging from genetics and breeding to international partnerships and developing global distribution networks. Knud Jepsen is the world's largest Kalanchoes breeder and producer distributing and selling more than 35 million finished plants in Europe and 90 million cuttings to over 75 countries each year. Over 520 people are employed or engaged by Knud Jepsen globally. In addition to Denmark, Knud Jepsen operates an 880,000 sq. ft. flower and young plant production facility in Turkey, and a 700,000 sq. ft. facility in Vietnam specializing in producing cuttings belonging to the Queen® Genetic assortment.
"We are thrilled to partner with TGOD and officially enter the cannabis market with the signing of this definitive agreement," commented Frands Jepsen, Knud Jepsen's CEO. "2,500 kgs in Denmark is just the beginning, we will shift the proposed 25,000 kgs to strategic European locations with low-cost production and expect to far exceed that capacity as we onboard additional production sites. We will leverage our global business, dedicated staff, and 80 years of operating and R&D experience to become, with TGOD, the largest European producer of organic cannabis."
On Behalf of the Board of Directors,
The Green Organic Dutchman Holdings Ltd.
About The Green Organic Dutchman Holdings Ltd:
The Green Organic Dutchman Holdings Ltd. (TSX: TGOD) is a publicly traded, premium global organic cannabis company, with operations focused on medical cannabis markets in Canada, Europe, the Caribbean and Latin America, as well as the Canadian adult-use market. The Company grows high quality, organic cannabis with sustainable, all-natural principles. TGOD's products are laboratory tested to ensure patients have access to a standardized, safe and consistent product. TGOD has a funded capacity of 170,000 kgs and is building 1,382,000 sq. ft. of cultivation facilities across Ontario, Quebec, Denmark, and Jamaica.
TGOD's Common Shares and warrants issued under the indenture dated November 1, 2017 trade on the TSX under the symbol "TGOD" and "TGOD.WT", respectively.
For more information on The Green Organic Dutchman Holdings Ltd., please visit http://www.tgod.ca.
Forward-Looking Information Cautionary Statement
This news release includes statements containing certain "forward-looking information" within the meaning of applicable securities law ("forward-looking statements"). Forward looking statements in this release includes, but is not limited to, statements about the future legalization of cannabis-infused products in Canada, statements about future research, development and innovation by the Company, statements about future facility construction, statements about the offering of any particular products by the Company in any jurisdiction and statements regarding the future performance of the Company. Forward-looking statements are frequently characterized by words such as "plan", "continue", "expect", "project", "intend", "believe", "anticipate", "estimate", "may", "will", "potential", "proposed" and other similar words, or statements that certain events or conditions "may" or "will" occur. These statements are only predictions. Various assumptions were used in drawing the conclusions or making the projections contained in the forward-looking statements throughout this news release. Forward-looking statements are based on the opinions and estimates of management at the date the statements are made, and are subject to a variety of risks and uncertainties and other factors that could cause actual events or results to differ materially from those projected in the forward-looking statements. The Company is under no obligation, and expressly disclaims any intention or obligation, to update or revise any forward-looking statements, whether as a result of new information, future events or otherwise, except as expressly required by applicable law.
Neither TSX nor its Regulation Services Provider (as that term is defined in the policies of Toronto Stock Exchange) accept responsibility for the adequacy or accuracy of this release.
SOURCE The Green Organic Dutchman Holdings Ltd.