Here’s their Q.Three press launch and whichever method you spin it , it aint good !  CEO is dumped  losses at $6.84 million in comparison with Q.3 2019 . Yes they’ve some new merchandise which they are saying are doing properly however the trajectory isn’t precisely stellar.

Here’s the PR all their very own phrases…

  • Chief Financial Officer Sean Bovingdon to function Interim Chief Executive Officer
  • Michel Gagné appointed Chief Operating Officer
  • Total income of $5.71 million, a rise of 119% over Q3-2019
  • Canadian hashish income of $3.84 million, a rise of 41% quarter over quarter
  • Loss from operations lowered by 68% to $6.34 million in comparison with Q3-2019
  • G&A bills proceed to lower, all the way down to $5 million for the quarter
  • Company information non-cash impairment cost of $67.84 million

TORONTONov. 10, 2020 /PRNewswire/ – The Green Organic Dutchman Holdings Ltd. (“TGOD” or the “Company”) (TSX: TGOD) (US: TGODF), introduced right this moment its monetary outcomes for the third quarter of 2020 ended September 30, 2020, and management modifications.  These filings can be found for assessment on the Company’s SEDAR profile at www.sedar.com.

Leadership Changes

The Company introduced that Brian Athaide has left his positions as Chief Executive Officer (“CEO”) and board director efficient instantly. TGOD Chief Financial Officer, Sean Bovingdon, has been appointed Interim CEO.  In addition, Michel Gagné, Vice President of Operations, has been appointed Chief Operating Officer (“COO”), overseeing the Company’s cultivation and processing operations, provide chain and product improvement.  In his new function as COO, he’ll work carefully with the CEO on the Company’s general technique and execution.

The board of administrators determined {that a} change in management was essential to drive the Company ahead because it enters its subsequent section of progress and continues to work in the direction of attaining constructive EBITDA and money circulation as quickly as doable. Under the Company’s new management, TGOD will function with a renewed dedication to executional excellence and price self-discipline because the Company drives income progress and operational stability.

“On behalf of the board of directors, we thank Brian Athaide for his contribution to TGOD and I am pleased that Sean has agreed to lead the Company at this critical juncture,” commented Jeff Scott, Chairman of the board.  “He recognizes the challenges we must confront, and I look forward to working with him and the rest of the TGOD team to pave a new way forward for the Company,” added Mr. Scott.

Management Commentary

“During the third quarter, despite certain production challenges that have now been addressed, we continued to deliver growth following the launch of our mainstream brand, Highly Dutch, in Quebec as well as teas and RIPPLE dissolvable powders.  Our focus will continue to be on improving the execution of our existing production while developing innovative and distinctive products to introduce into more stores across the country,” commented Sean Bovingdon, Interim CEO of TGOD.  “We saw encouraging numbers in October as we sold more flower, additional RIPPLE and tea variants, and launched hash in Quebec.  We are looking to build on this growth while focusing on financial discipline throughout the Company,” added Mr. Bovingdon.

Q3 Financial Highlights

  • Quarterly income of $5.71 million consisting of gross sales from hashish merchandise in Canada of $3.84 million and hemp-derived product gross sales in Europe of $1.87 million.
  • The 41% improve in income from Canada from Q2 to Q3 may be attributed to the entry into the Quebec market with the launch of the Company’s mainstream model, Highly Dutch, which was launched on the finish of May 2020 and ramped up in Q3, together with the introduction of TGOD’s premium tea lineup.
  • Loss from operations decreased by 68% in Q3 2020 in comparison with Q3 2019 to $6.34 million, primarily pushed by elevated gross revenue and decreased working bills.
  • Net lack of $76.24 million consisting primarily of a non-cash impairment cost of $67.84 million realized in the course of the quarter to mirror modifications within the timing of accessing market demand, gross sales worth compression throughout the business, and the ensuing slower income ramp up and progress. This non-cash cost has no direct affect on the Company’s operations or liquidity.
  • General and administrative bills of $5 million for the quarter decreased compared to bills of $13.34 million in the course of the prior-year interval and symbolize a lower of $0.71 million from Q2-2020. The reductions from the prior quarter mirror the Company’s persevering with plan to considerably scale back spending on third-party distributors, and was partially offset by elevated severance prices of $0.6 million and the truth that the Company acquired $0.34 million in CEWS funds in Q2-2020. Excluding these severances and one-time CEWS profit, underlying G&A lowered by $1.6 million or nearly 30% versus the prior quarter.

Q3 Business Highlights

  • The Company obtained a European Union Good Manufacturing Practice (“EU-GMP”) certificates for its Ancaster facility, enabling it to start exporting its premium licensed natural merchandise to Germany for validation in preparation for commercialization in 2021. The Company anticipates validation will likely be accomplished by the top of 2020, subsequently enabling export of medical hashish merchandise for commercialization to Europe and different jurisdictions.
  • The Company launched vapes in Alberta and British Columbia, listed Highly Dutch mainstream flower in ManitobaNewfoundlandOntario, and Saskatchewan, and added Zen Green Sencha tea to its product assortment in Quebec.
  • The Company accomplished the required gear transfers to remodel its Valleyfield facility right into a manufacturing and processing hub for its 2.Zero merchandise following challenges with third-party processing. Production on the Quebec Facility of dissolvable powders, premium teas and concentrates has commenced, together with co-packing of third-party hashish manufacturers in October, which helps soak up prices and higher leverage the Company’s property and licenses in Quebec.
  • The Company launched Organic Afghan Black hash beneath the Highly Dutch model in Quebec with preliminary gross sales exceeding expectations.
  • The Company continues to watch and adapt to altering market situations together with however not restricted to the continued affect of the COVID-19 pandemic and has carried out precautionary protocols which have enabled all operations to proceed uninterrupted.

Subsequent to the Quarter

  • On October 1, 2020, the Company agreed with its lender to increase the maturity date for its revolving credit score facility to December 31, 2021, in trade for widespread share buy warrants to buy 500,000 Common Shares at a worth of $0.30 per share expiring November 2, 2025.
  • On October 2, 2020, the Company agreed with its senior lender to increase the maturity date for its senior secured credit score facility to December 15, 2021, in trade for fee of a financing price of $0.four million and repricing of widespread share buy warrants to buy 7,000,000 Common Shares expiring December 20, 2022 from an train worth of $1.00 per share to an train worth of $0.30 per share, and extension of the expiry date to November 2, 2025, and issuance of extra widespread share buy warrants to buy 1,000,000 Common Shares at an train worth of $0.30 expiring November 2, 2025.
  • On October 23, 2020, the Company secured extra financing by closing a transaction with gross proceeds of $12.78 million for brand spanking new fairness. The underwriter bought, on a purchased deal foundation, an mixture of 53,263,400 models at a worth of $0.24. Each unit is comprised of 1 Common Share and three-quarters of 1 widespread share buy warrant of the Company. Each warrant entitles the holder to accumulate one Common Share of the Company till October 23, 2025 at an train worth of $0.30 per warrant.

Conference Call

The Company will maintain a convention name with analysts tomorrow, starting at 9:00 a.m. (ET). An audiocast of the convention name will likely be accessible on a listen-only foundation at: 
https://produceredition.webcasts.com/starthere.jsp?ei=1398895&tp_key=a3ee2c0b4a.

Date: November 11, 2020 | Time: 9:00 a.m. Eastern Time
Participant Dial-In
Local – Toronto: 1-416-764-8688
Toll Free – North America: 1-888-390-0546
Conference ID – 68691087

A replay of the decision will even be accessible by November 18, 2020 by dialing 1-416-764-8677 or 1-888-390-0541 (Passcode: 691087#).

About The Green Organic Dutchman Holdings Ltd.

The Green Organic Dutchman Holdings Ltd. (TSX: TGOD) (US–OTC: TGODF) is a premium licensed organically grown hashish firm centered on the well being and wellness market.  Its natural hashish is cultivated in dwelling soil, as nature meant.  The Company is dedicated to cultivating a greater tomorrow by producing its merchandise responsibly, with much less waste and affect on the atmosphere. Its two Canadian services have been constructed to LEED certification requirements and its merchandise are bought in recyclable packaging.  In Canada, TGOD sells dried flower and oil, and not too long ago launched a collection of subsequent–era hashish merchandise similar to hash, vapes, natural teas and dissolvable powders.  Through its European subsidiary, HemPoland, the Company additionally distributes premium hemp CBD oil and CBD-infused topicals in Europe. By leveraging science and expertise, TGOD harnesses the ability of nature from seed to sale.

TGOD’s Common Shares and warrants issued beneath the indentures dated November 1, 2017, December 19, 2019June 12, 2020 and October 23, 2020 commerce on the TSX beneath the image “TGOD”, “TGOD.WT”, “TGOD.WS”, “TGOD.WR” and “TGOD.WA”, respectively, and TGODF trades within the US on the OTCQX. For extra info on The Green Organic Dutchman Holdings Ltd., please go to www.tgod.ca.

Cautionary Statements
This information launch consists of statements containing sure “forward–looking information” inside the which means of relevant securities regulation (“forward–looking statements”). Forward wanting statements on this launch consists of, however will not be restricted to, statements about revenues, manufacturing timelines, manufacturing volumes, normal and administration prices, statements in regards to the launch and distribution of the Company’s new THC strains, mainstream hashish and a pair of.Zero merchandise, statements about its operations in Quebec, and statements concerning the long run cashflows and future efficiency of the Company.   Forward–wanting statements are ceaselessly characterised by phrases similar to “plan”, “continue”, “expect”, “project”, “intend”, “should”, “believe”, “anticipate”, “estimate”, “may”, “will”, “potential”, “proposed” and different comparable phrases, or statements that sure occasions or situations “may” or “will” happen. These statements are solely predictions.  Various assumptions had been utilized in drawing the conclusions or making the projections contained within the ahead–wanting statements all through this information launch. Forward–wanting statements are based mostly on the opinions and estimates of administration on the date the statements are made and are topic to quite a lot of dangers and uncertainties (together with market situations) and different components that might trigger precise occasions or outcomes to vary materially from these projected within the ahead–wanting statements, together with these threat components described within the Company’s most not too long ago filed Annual Information Form accessible on SEDAR.  The Company is beneath no obligation, and expressly disclaims any intention or obligation, to replace or revise any ahead–wanting statements, whether or not on account of new info, future occasions or in any other case, besides as expressly required by relevant regulation.

Neither the TSX nor the TSX’s Regulation Services Provider (as that time period is outlined within the insurance policies of Toronto Stock Exchange) settle for accountability for the adequacy or accuracy of this launch.

SOURCE The Green Organic Dutchman Holdings Ltd.

Source link