The Green Organic Dutchman Holdings Ltd. (the “Company” or “TGOD”) (TSX:TGOD) (US:TGODF) is pleased to announce its expansion into the global organic hemp CBD market with the launch of its Global Strategic Hemp Division. This new division will leverage TGOD’s solid expertise in the European hemp CBD market to fuel growth and accelerate the development and commercialization of new products across its network of international partners.

“With the global CBD market expected to hit $22 billion in less than 3 years, it is clear that the segment is drawing substantial consumer demand,” commented Brian Athaide, CEO of TGOD.  “Our team has years of direct hands-on experience in the CBD space and we are excited to use this advantage to execute on a fast-moving market expansion strategy.  CBD is a wellness product and has a natural fit with TGOD’s certified organic positioning and the large segment of consumers who are increasingly demanding natural and organic products.  The time to act is now, and TGOD has the team, the infrastructure and the capital to establish a significant presence in this market.”

TGOD’s acquisition of HemPoland in 2018 will continue to provide the Company with significant intellectual property and valuable insights as its Global Strategic Hemp Division expands into emerging hemp CBD markets. HemPoland saw its revenue for the first quarter grow by nearly 30% quarter over quarter as demand for high-quality hemp CBD products in Europe gains momentum.

HemPoland has years of experience in cultivating and processing EU-registered hemp varieties, which are very similar to those currently allowed for cultivation in Canada. Given that the processing of industrial hemp flowers for CBD was illegal in Canada until October 2018, HemPoland’s experience in both research and development, as well as commercial extraction of hemp strains in an efficient manner, provides a distinct advantage to TGOD and its partners.

TGOD’s Global Strategic Hemp Division will offer significant support to the Company’s international partners by providing genetics, training on organic methods and standard operating procedures, as well as regulatory insights and other advisory support. This will allow for the production of consistent high-quality organic hemp and CBD in global markets. The division will initially work to support initiatives in Canada, Germany, Jamaica, Mexico, Poland and the U.S.A.

TGOD, through its European subsidiary, HemPoland, has already signed a distribution agreement with Mediakos, a leading German pharmaceutical distributor and has had in-depth discussions with co-packers and additional distributors to continue expanding its footprint across Europe.

The Company also plans to enter the U.S. hemp CBD beverage market through existing partnerships, providing TGOD with maximum flexibility and the ability to  go to market with hemp-based CBD beverages quickly and with a capital light model.

In Canada, The Green Organic Hemp Ltd. (“TGOH”), a wholly-owned subsidiary of TGOD, has been licenced by Health Canada for the cultivation of organic hemp since 2018. TGOH grew a small test crop last year, and has successfully renewed the licence for the cultivation of a larger crop in 2019 on 158 acres of organic farmland in Southern Ontario. Planting activities are underway and the first harvest is expected within 12 weeks.

“Hemp is an incredible crop, one we can manufacture into mass market organic CBD products to establish an immediate market presence in Canada through tinctures and oils, while we prepare for the introduction of additional delivery methods such as vapes, beverages, edibles and topicals later this year,” added Athaide.

TGOH intends to supplement its own harvest with large offtake agreements from experienced Canadian organic hemp cultivators, with a potential increase to its internal production of 50,000 kgs. Wholesale hemp supply agreements have already been secured, allowing TGOH to begin domestic production of organic hemp CBD products. The Company has already signed toll processing contracts with Valens GroWorks and Neptune Wellness Solutions to quickly ramp up production volumes.

SOURCE The Green Organic Dutchman Holdings Ltd.