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Toronto-based hashish producer The Green Organic Dutchman changed its CEO this week amid mounting losses and warned investors about its means to proceed as a going concern.
Brian Athaide left his function as CEO and board member, the corporate introduced in a information launch alongside its quarterly outcomes.
Chief Financial Officer Sean Bovingdon will fill in as CEO on an interim foundation. Vice President of Operations Michel Gagné was promoted to CFO.
The resolution to swap CEOs “was made by the board of directors,” a spokesman for Green Organic Dutchman (TGOD) advised Marijuana Business Daily by way of electronic mail.
“The board of directors decided that a change in leadership was necessary to drive TGOD forward as it enters its next phase of growth and continues to work towards achieving positive EBITDA and cash flow as rapidly as possible.”
The firm reported a internet loss of 76.2 million Canadian greenback ($57.8 million) for the quarter ended Sept. 30 on a noncash impairment cost of CA$67.84 million.
That brings TGOD’s year-to-date loss to CA$230.84 million.
Revenue for the three-month interval was CA$5.71 million.
In a regulatory submitting with its monetary assertion for the Sept. 30 interval, the corporate warned it might need to reschedule debt obligations or receive additional financing to proceed operations for the subsequent 12 months.
“If existing debt obligations are not rescheduled or adequate financing is not available, the company may be required to delay or reduce the scope of any or all of its projects,” Green Organic Dutchman warned within the submitting.
“These conditions indicate the existence of a material uncertainty that may cast significant doubt about the Company’s ability to continue as a going concern.”
After the quarter ended, the corporate raised roughly CA$12.7 million in capital and agreed with lenders to increase the maturity date of its obligations to the top of 2021, per the submitting.
In a observe to traders, analyst Tamy Chen wrote, “If access to equity capital ever ceased – so far not the case – so would TGOD’s going concern, a situation not unlike what several other LPs are facing.”
Athaide joins a protracted listing of former CEOs within the Canadian hashish area after their firms largely failed to fulfill expectations.
Athaide is entitled to a severance “equivalent to 24 months base salary, bonus and benefits” upon termination with out trigger, in accordance with a regulatory submitting.
That would put his severance within the neighborhood of CA$700,000.
“The Company and Mr. Athaide are negotiating amicably for the settlement of his severance, details of which will be disclosed in due course,” the spokesman advised MJBizDaily.
The Green Organic Dutchman trades as TGOD on the Toronto Stock Exchange.
Matt Lamers is Marijuana Business Daily’s worldwide editor, based mostly close to Toronto. He will be reached at [email protected].