|Bid||0.0000 x 0|
|Ask||0.0000 x 0|
|Day's Range||0.5300 - 0.5602|
|52 Week Range||0.4690 - 4.3800|
|Beta (5Y Monthly)||N/A|
|PE Ratio (TTM)||N/A|
|Forward Dividend & Yield||N/A (N/A)|
|1y Target Est||N/A|
Is There a Correlation Between the Rise in Marijuana Sales and Weakening Beer Sales? New data shows Canadians are drinking less beer and consuming more marijuana following adult-use Cannabis Legalization in Canada.
Green Organic Dutchman Holdings Ltd. said Thursday that President Csaba Reider will leave the Canada-based cannabis company, as part of a executive leadership consolidation aimed at reducing costs and improving cash flow. Chief Executive Brian Athaide will assume Reider's duties. Vice President of Sales Mike Gibbons will also leave the company, with VP of Medical Commercialization Robert Gora assuming the consolidated role of VP of national sales. "This will result in significant G&A savings and a leaner more efficient organization," Athaide said of the management changes. " We are also very focused on ramping up production, expanding our product portfolio with innovative organic products and gaining market share across the country." The U.S.-listed stock has plunged 52.4% over the past three months, while the ETFMG Alternative Harvest ETF has tumbled 17.4% and the S&P 500 has climbed 11.4%.
The Viridian Cannabis Deal Tracker is an information service that monitors capital raise and M&A activity in the legal cannabis industry. Analyzing within 12 key industry sectors, the Viridian Cannabis Deal Tracker provides cannabis companies, investors, and acquirers with the data, trends, and intelligence they need to make informed decisions regarding deal valuations, terms, and structures. Since its inception, the Viridian Cannabis Deal Tracker has tracked and analyzed more than 2,400 capital raises totaling over $29 billion as well as more than 900 M&A transactions.
The Green Organic Dutchman, OrganiGram Holdings, and HEXO have been among the more compelling plays for cannabis companies based in Canada, until the temporary limitations inherent in the Canadian market have put immense pressure on the three companies, driving now their growth propects for some time.It has gotten so bad that all three companies, along with many of their peers, have announced they're reducing production until the market can absorb more supply.The primary issue isn't demand, but the slow roll out of cannabis retail stores in Ontario and Quebec. That has allowed black market cannabis producers to thrive, which has also put downward pressure on prices because of the lower cost basis enjoyed by illegal pot producers.In this article we'll look at how this ongoing challenge will impact the performance of these companies going forward.OrganiGram Holdings (OGI) For some time OrganiGram had generated a lot of positive buzz with investors because of its unique growing system that allows it to produce cannabis at very low costs in comparison to the majority of its competitors.It was assumed that OrganiGram was going to probably become the first consistent generator of positive earnings of the pot producers. After its last earnings report, that's obviously off the table at this time.It's also going to produce less cannabis in the near term than projected. In November 2019 it announced it was going to produce 89,000 kilograms of cannabis annually, rather than the previously announced 113,000 when operating at full capacity.As mentioned, the ongoing positive catalyst is its unique three-tiered system that allows it to product a yield of approximately 230 grams per square foot.Another positive for now is it's the only key Canadian producer located in the Atlantic province located in eastern Canada. Not only could it potentially dominate those markets, but it could lower distribution costs if it focuses on markets closer to home. Organigram is one of the few companies licensed to sell pot in all Canadian provinces.After a sold third-quarter earnings report where the company generated a solid profit, it followed up with a dismal fourth quarter, where net revenue plunged by close to 33 percent, falling to C$16.3 million.With no relief on the growth side in regard to retail outlets in the near term, there's no visible catalyst to suggest a turnaround anytime soon.What do analysts say about the cannabis producer? TipRanks, a company that tracks and measures the performance of analysts, showcases OGI as a Moderate Buy. Based on 7 analysts tracked in the last 3 months, 5 rate the pot stock a "buy," while 2 say "hold." Meanwhile, the 12-month average price target stands at $6.19, marking over 160% upside from where the stock is currently trading. (See OrganiGram stock analysis on TipRanks)HEXO Corp. (HEXO)HEXO was another high-flying Canadian company that was considered to be among the market leaders in the nation, but that has rapidly crumbled, as it too has announced cutting back on production capacity in 2020.HEXO management had projected production capacity of up to 150,000 kilograms annually, but is now looking at a range of 90,000 to 100,000 kilograms per year.In its first fiscal quarter results, the company reported net revenue falling to C$14.5 million, down from the C$15.4 million generated in the previous quarter. Even worse was its loss from operations of a huge C$58.5 million.Of these three companies, HEXO is the most concerning for me because of its exposure to Quebec, which is probably the most challenging province to operate in because of its outlook toward increasing retail outlets and increasing the age of pot usage to 21-years-old.It has stated that it isn't going to aggressively push for rapid expansion of dispensaries. Combined with a higher legal age, it's going to probably struggle more than its peers to gain traction over the next twelve months.Ultimately, the word on the Street points to a sidelined majority on HEXO. In the last three months, the Canadian cannabis maker has landed 2 ‘buy’ ratings vs. 8 ‘hold’ and 5 "sell" ratings. That said, the consensus average price target points to $2.85, or nearly 75% upside potential for the stock. This suggests that by consensus expectations, for now, the bulls still win on HEXO. (See HEXO stock analysis on TipRanks)The Green Organic Dutchman (TGODF)Of these three companies, The Green Organic Dutchman will cut output far more than its two other competitors.The company gave updates in October 2019 that it was going to cut back on its production at Valleyfield facility. Fully operational, the facility could produce up to 130,000 kilograms annually. Instead, in 2020 it'll only generate about 10,000 kilograms a year at Valleyfield. With output from its Ancaster campus expected to reach about 12,000 kilograms in 2020, that means the company will only produce at the top end, about 22,000 kilograms a year, far off management's assertion the company has the capacity and capability to produce about 219,000 kilograms a year.The company is aligning itself with market realities, and instead is looking to cut back on costs this year to the point of possibly generating a profit.Even so, with the company only producing about a tenth of its potential, it's going to struggle to attract investors that believe in its viability in 2020. That could change if it does manage to turn a profit this year.Judging from the consensus breakdown, it has been relatively quiet when it comes to analyst activity. Over the last three months, only 3 analysts have reviewed the marijuana stock; two of which are sidelined and one is bullish, making the consensus a Moderate Buy. On top of this, the $0.63 average price target puts the upside potential at 17%. (See TGOD’s price targets and analyst ratings on TipRanks)ConclusionThere are a lot of headwinds as 2020 starts up for the Canadian cannabis sector, and it's going to take time to work through them. The major metric to watch in my view for not only the three companies mentioned here, but for all Canadian companies, is how quickly Ontario retail outlets become operational.A distant second will be the level of success companies will have in the derivative markets, which we won't have a clear understanding of until after the earnings reports for the current quarter.The major problem is the lack of ability to scale, and the robust black market that has survived largely intact because of the lack of competition in the key markets of Canada. That has put downward pressure on prices and margins, and ultimately, earnings results.While all of this sounds dismal, the reality is nothing has really changed in the long-term for the Canadian cannabis market. The demand is still there, and once hundreds of more retail stores are operational, it's going to have a big impact on the performance of these three companies.Again, I see HEXO as having the most challenges because of its location in Quebec. But even that could be overcome in time once many more cannabis sales outlets are available to sell in.The Canadian cannabis market is going to remain volatile for awhile, but investors that take positions in some of these companies while they're selling at these levels, with patience, should be rewarded with strong returns over the next few years.To find good ideas for cannabis stocks trading at fair value or better, visit TipRanks’ Best Stocks to Buy, a newly launched tool that unites all of TipRanks’ equity insights.
Since 2013, I’ve taken an annual accounting of my work on MarketWatch in a good-faith effort to own up to my mistakes — and trumpet a few well-timed trades that paid off. In the last year or two, I learned from programmatic advertisements and spam emails that “legendary stock pickers” have been picking up major buy signals among marijuana stocks. The very first pick named — The Green Organic Dutchman Holdings Ltd. (TGODF) , which trades on the pink sheets — has lost a stunning 80% since then through Friday, proving just how awesome this money-making opportunity really was in 2019.
TORONTO , Dec. 24, 2019 /CNW/ - The Green Organic Dutchman Holdings Ltd. (the "Company" or "TGOD") (TGOD.TO) (TGODF), a leading producer of premium certified organic cannabis, is pleased to announce that it has closed the previously announced senior secured first lien credit facility of up to $42.7 million (the "Facility") with Maynbridge Capital Inc. (the "Lender"). The Facility consists of a committed $27.7 million senior secured term loan with an 18-month term, and an additional uncommitted $15.0 million senior secured term loan to be made available upon the Lender's credit approval and the achievement of certain operating and financial milestones which the Company expects to obtain and achieve not earlier than the end of the third quarter of 2020. TGOD also issued 7,000,000 common share purchase warrants of the Company ("Warrants") to the Lender.
Canadian cannabis giant Aurora Cannabis (NYSE:ACB) has not had a stellar month, and that's an understatement. After a rare surge that enabled Aurora stock to hit $3.12 on November 12, bad news is again hurting ACB stock. The latest blow came on Monday, when a research analyst set a $0 price target on Aurora stock, triggering a 7.48% drop that pushed ACB down to $2.35 at the end of the day.Source: ElRoi / Shutterstock.com Is Aurora Cannabis stock really going to become worthless? An Analyst Set a $0 Price Target on ACB StockOn Monday, GLJ Research analyst Gordon Johnson shook up marijuana stocks by initiating coverage of Aurora Cannabis with a "sell" rating and a two-year price target of $0. Johnson cited several factors as reasons for his extreme bearishness, including the company's high debt load and his belief that the Canadian cannabis market could become oversupplied.InvestorPlace - Stock Market News, Stock Advice & Trading TipsJohnson also described the recent challenges faced by The Green Organic Dutchman (OTCMKTS:TGODF). Aurora Cannabis actually owned a chunk of Green Organic, an organic marijuana producer, and dumped those shares in September. In October, Green Organic's shares tanked when it ran into difficulty obtaining financing from Canadian banks. It was going to use the funds to complete two growing facilities.In its latest earnings report, Aurora listed 1.14 billion CAD of loans. Assuming Aurora can't become profitable, the company may need additional financing to meet those obligations. Green Organic's experience indicates that bank financing may be tough to come by for Aurora.In addition, some estimates suggest that as much as 3 million kilograms of recreational marijuana may be produced in Canada in 2020. But in 2019, the first full year of legalization, Canadians are on track to buy only 900,000 kg of marijuana. Johnson thinks Canadian cannabis demand will rise to 1.1 million kg in 2020, resulting in oversupply and, potentially, falling prices. That scenario would make it all but impossible for Aurora to be profitable. According to Johnson, the combination of high debt and a lack of profitability will cause Aurora Cannabis stock to become worthless by 2021. The Cannabis Market Is ChallengingWhile Johnson's prediction may be extreme, there's no denying that cannabis companies have faced serious challenges. * 7 Vaping Stocks to Get into Ahead of the Crowd In particular, the Canadian recreational market has failed to develop into the gold rush bullish investors had hoped for. Among the challenges faced by cannabis companies are lower than expected consumer demand, production challenges and a lack of licensed retail outlets. The latter issue is especially problematic in Ontario, Canada's most populous province. Consequently, the recreational marijuana market has simply failed to meet bulls' high expectations.And the sector's problems aren't limited to Canada. ACB stock dropped at the end of November after the company's medical marijuana sales were suspended in Germany by the country's health officials.Aurora stock was trading over $10.50 last October when pot was legalized in Canada. ACB stock has lost nearly 78% of its value since that time. Is Aurora Stock Really on Track to be Worthless?So is Aurora stock truly poised to be worthless in 2021? That is a pretty extreme call. Other analysts are a little more optimistic, at least in the shorter term. With a median 12-month price target of $4.52 and an average rating of "buy", the 17 analysts polled by CNN Business aren't as pessimistic about Aurora stock. A number of factors offers some hope to the owners of marijuana stock. National legalization of cannabis in the U.S. came a step closer to reality in November. Ontario has announced that it will allow cannabis retail locations to open at a faster pace in 2020, a move that could dramatically boost Canadian cannabis sales. And Cannabis 2.0 -- the next phase of legalization that will enable food and beverages with cannabis to be sold legally -- launched in Canada on Dec. 17.ACB stock may not yet have bottomed, but there's a good chance that the shares will perform better in 2020 and 2021 than they did in 2019.As of this writing, Brad Moon did not hold a position in any of the aforementioned securities. More From InvestorPlace * 2 Toxic Pot Stocks You Should Avoid * 7 Vaping Stocks to Get into Ahead of the Crowd * 5 Retail Stocks That Are Winning Big This Holiday Season * Make the Shift Toward Value Stocks With These 5 Picks The post Aurora Stock Dove After an Analyst Gave It a $0 Price Target appeared first on InvestorPlace.
TORONTO , Dec. 19, 2019 /CNW/ - The Green Organic Dutchman Holdings Ltd. (the "Company" or "TGOD") (TGOD.TO) (TGODF) is pleased to announce that it has closed its previously announced short form prospectus offering, on a bought deal basis, including the full exercise of the underwriter's over-allotment option. A total of 36,800,000 units of the Company (the "Units") at a price per Unit of $0.75 were issued for aggregate gross proceeds of $27.6 million (the "Offering"). The Offering was conducted by Canaccord Genuity Corp.
Only a week after Brazil came out with medical cannabis regulations , another Latin American nation has taken a step forward in the marijuana space. Peru finally rolled out the sale of medical cannabis ...
TORONTO , Dec. 13, 2019 /CNW/ - The Green Organic Dutchman Holdings Ltd. (the "Company" or "TGOD") (TGOD.TO) (TGODF), a leading producer of premium certified organic cannabis, is pleased to announce that the Company has entered into a binding term sheet with Maynbridge Capital Inc. (the "Lender"), subject to satisfactory documentation and the fulfilment of all conditions precedent, for a senior secured first lien credit facility of up to $41.7 million (the "Facility"). The Facility will replace the proposed mortgage loan as well as the sale and leaseback of its Ancaster Energy Centre, which are no longer being pursued by the Company at this time.
TORONTO , Dec. 2, 2019 /CNW/ - The Green Organic Dutchman Holdings Ltd. (the "Company" or "TGOD") (TGOD.TO) (TGODF), is pleased to announce that it has entered into an amending agreement with Canaccord Genuity Corp. (the "Underwriter") to increase the size of its previously announced bought deal financing. Pursuant to the revised terms of the offering, the Underwriter has agreed to purchase, on a bought deal basis, an aggregate of 32,000,000 units (the "Units") at a price of C$0.75 per Unit (the "Offering Price") for aggregate gross proceeds to TGOD of $24,000,000 (the "Offering"). Each Unit will consist of one common share of the Company (a "Common Share") and one-half of one Common Share purchase warrant (each whole Common Share purchase warrant, a "Warrant").
Cannabis stocks were slammed anew on Tuesday, after the U.S. Food and Drug Administration issued new guidance on CBD that included a stark warning that it can cause liver injury and other damage to the human body.
Canadian organic cannabis producer The Green Organic Dutchman (TSX: TGOD) (OTC: TGODF) announced Tuesday that it has signed a bought deal agreement with a syndicate of underwriters led by Canaccord Genuity. The agreement dictates that the underwriters will buy an aggregate of 29,334,000 units at a price of CA$0.75 (55 cents) per unit, amounting to a total of approximately CA$22 million. Each unit will consist of one common share and one-half of one share purchase warrant of TGOD stock.
TORONTO , Nov. 26, 2019 /CNW/ - The Green Organic Dutchman Holdings Ltd. (the "Company" or "TGOD") (TGOD.TO) (TGODF), a leading producer of premium certified organic cannabis, is pleased to announce that it has entered into an agreement with a syndicate of underwriters led by Canaccord Genuity Corp. (the "Underwriters") pursuant to which the Underwriters have agreed to purchase, on a bought deal basis pursuant to the filing of a short form prospectus, an aggregate of 29,334,000 units (the "Units") at a price of $0.75 per Unit (the "Offering Price") for aggregate gross proceeds to the Company of approximately C$22.0 million (the "Offering"). Each Unit shall consist of one common share (each a "Common Share") and one-half of one common share purchase warrant of the Company (each whole such warrant, a "Warrant").
The Green Organic Dutchman Holdings Ltd. (the "Company" or "TGOD") (TSX: TGOD) (US: TGODF), a leading producer of premium certified organic cannabis, is pleased to announce that it has received its inaugural purchase order from the BC Liquor Distribution Branch ("BCLDB"), further expanding its Canadian distribution footprint. The Company also obtained a licence amendment from Health Canada, allowing it to launch cultivation operations at its flagship Valleyfield hybrid greenhouse.
TORONTO , Nov. 19, 2019 /CNW/ - The Green Organic Dutchman Holdings Ltd. (the "Company" or "TGOD") (TGOD.TO) (TGODF), a leading producer of premium certified organic cannabis, is pleased to announce that it has received orders from Alberta , Manitoba and Nova Scotia to be shipped this month, significantly expanding its Canadian distribution footprint. The Company is also launching two new strains in Ontario as well as the world's first organic cannabis certification program for budtenders.
The Green Organic Dutchman Holdings Ltd. (TSX: TGOD) (US: TGODF) reported its financial and operational results for the three and nine months ended September 30, 2019. The company experienced a loss of C$20.1 million for the third quarter. The important move TGOD made in the quarter was entering the recreational market with a small pilot in Ontario. […]The post Cannabis Stock News Roundup November 15 appeared first on Market Exclusive.
TORONTO, Nov. 14, 2019 /PRNewswire/ - The Green Organic Dutchman Holdings Ltd. (the "Company" or "TGOD") (TGOD.TO) (TGODF) is pleased to report its financial and operational results for the three and nine months ended September 30, 2019. Continued construction of its Ancaster and Valleyfield facilities, investing $104 million in capital expenditures during the quarter. Valleyfield Phase 1 consists of six zones and its production will be shipped to Ancaster for processing.