The Green Organic Dutchman ups its capex in 3Q as cannabis facility construction continues
The cannabis company spent a total of C$33 million on the construction of its facilities in Ontario and Quebec.
The Green Organic Dutchman Holdings Ltd (TSX:TGOD, OTCQX:TGODF) reported a boost in capital expenditures in its third quarter as the Canadian cannabis company continues its international expansion and the construction of its cannabis facilities.
The company spent a total of C$33 million in capital expenditures on the construction of its facilities in Hamilton, Ontario and Valleyfield, Quebec compared with the C$1.02 million spent on additions to its property, plant and equipment in the previous third quarter.
Total assets in the third quarter amounted to $360.8 million, a 272% increase compared with the $96.9 million reported last year.
Gross profit totaled C$305,000 in the third quarter, close to double the C$179,000 reported a year ago.
Operating expenses increased to C$10.1 million compared with last year’s $2.8 million. TGOD reported a net loss of C$0.04 per share compared with a net loss of $0.02 per share last year.
The company expects to launch commercial production in both facilities during the first half of 2019.
“We are on schedule to scale up our new facilities to bring annual capacity of 170,000 organic kgs online. With international sales in Q4 2018, anticipated supply and distribution agreements, domestic sales commencing in Q1 2019, and additional global M&A opportunities, we expect a number of significant catalysts for our company in the near term", said CEO Brian Athaide in the company’s press release.
The company has inked deals left and right to continue its expansion into Jamaica, Europe and Latin America.
Chief Financial Officer Sean Bovingdon assured investors that the company will not be returning to the market for additional capital at this time, having raised more than C$450 million to fully fund its domestic and international plans.
"We have de-risked the capital side of our business and with our focus now on delivering medical and recreational sales in Canada and internationally, we expect to drive significant value for shareholders in 2019 and beyond,” stated Bovingdon.
TGOD’s cannabis is grown naturally in Canadian soil without the use of synthetic pesticides, herbicides or fertilizers and wrapped in eco-friendly packaging.