- TGOD among mere handful of Canadian cannabis cultivators dedicated to organic growing principles
- Health Canada seeks public input on regulations governing upcoming legalization of edible cannabis, extracts and topicals
- Deloitte survey notes that 60 percent of Canadians plan to purchase cannabis edibles
- Company has funded capacity of 170,000 kg and is currently building three cultivation facilities in two countries
- Cannabis-infused food and beverage market in the U.S. and Canada was expected to top $1.5 billion in 2018
The Green Organic Dutchman Holdings Ltd. (TSX: TGOD) (OTCQX: TGODF), a premium, organic cannabis-focused research and development company, is seeking to hasten the company’s time from harvest to sale as Health Canada assures consumers that cannabis edibles, extracts and topicals will be legal by October 2019. While medical cannabis has been available to patients for some time in Canada, adult-use recreational cannabis became legal in October 2018 with the caveat that additional cannabis products – such as edibles, topicals and extracts – would follow. Health Canada’s public comment period on the proposed regulations concludes on February 20, 2019 (http://ibn.fm/kw4Zl).
For TGOD, its newly signed royalty-bearing commercial sublicense with EnWave Corporation (TSX.V: ENW) (FSE: E4U) and Tilray, Inc. (NASDAQ: TLRY) offers the company the ability to increase its production timeline through EnWave’s proprietary Radient Energy Vacuum (“REV”) dehydration technology, according to a news release (http://ibn.fm/Sgsok). EnRay’s REV technology is an innovative method for the precise dehydration of organic materials. Tilray is a licensed partner with an exclusive right to use and sub-license EnWave’s proprietary REV technology in Canada. Under the license agreement, EnWave and Tilray will share royalties from TGOD’s use of the REV technology on an undisclosed basis.
“We are incredibly excited to utilize this proprietary and advanced dehydration technology, which will promote consistency in the manufacturing of our premium organic products, improve space efficiency by reducing the need for drying rooms and quicken TGOD’s time from harvest to sale,” TGODF Chief Executive Officer Brian Athaide stated in the news release.
Spending on cannabis-infused food and drink reached an estimated $1 billion in 2017 in the U.S. and Canada, representing around 11.4 percent of the total $9.1 billion in those two markets, and it is expected to top $1.5 billion in 2018, according to a report by Arcview Market Research in partnership with BDS Analytics (http://ibn.fm/e4WFg). Consumers are shifting toward consumables, the report states, with edibles and concentrates taking a larger share of cannabis inventory.
In a 2018 survey from Deloitte, close to 60 percent of Canadians said that they would use cannabis edibles, with overall consumption of cannabis expected to rise by up to 35 percent (http://ibn.fm/H2b2a). Canadian cannabis consumers also want better quality products, the report states, with more than half noting a preference for products that are certified free from pesticides and other harmful materials.
The $4.2 trillion wellness industry is another vertical that’s certain to benefit from Canada’s pending legalization of additional cannabis products in October, according to an article published on Yahoo! Finance (http://ibn.fm/l0fUd). TGOD is solidifying its place in that arena with a strategy focused on developing a premium, organically-grown cannabis product line.
”We believe that the beverage and edible market will be the largest single segment of the cannabis market. Cannabis, as the base ingredient, makes these products possible,” TGOD President Csaba Reider stated in the article. “The medicinal and recreational market for CBD and THC will only increase over time and starting with an organic input is the most important aspect to developing these higher margin products.”
For more information, visit the company’s website at www.TGOD.ca
