Toronto-based cannabis company The Green Organic Dutchman (TGOD) has warned investors about its ability to stay in business as it suffers growing losses.
“If existing debt obligations are not rescheduled or adequate financing is not available, the company may be required to delay or reduce the scope of any or all of its projects,” TGOD, which makes marijuana and CBD products, warned in a recent regulatory filing that accompanied its financial statement for Q3 2020.
“These conditions indicate the existence of a material uncertainty that may cast significant doubt about the Company’s ability to continue as a going concern,” the company said in the statement. TGOD said it needs to reschedule its debts or obtain further financing to continue operations for another 12 months.
TGOD makes mostly marijuana products, but also has the Ripple CBD brand in North America and CannabiGold CBD in Europe via HemPoland, a Polish CBD company it purchased for CA$20 million ($15.5 million/€13 million) in 2018.
TGOD dismissed its CEO, Brian Athaide simultaneous with the release of its figures. Chief Financial Officer Sean Bovingdon was tapped to fill in as CEO on an interim basis, with Vice President of Operations Michel Gagné moving into the CFO position. Athaide also is removed from the company’s board of directors. MJBizDaily estimated Athaide’s severance at roughly CA$700,000, ($533,000/€450,000) which includes 2 years salary, bonus and benefits.
TGOD reported a net loss of CA$76.2 (~$57.8 million/~€49 million) for the quarter ended Sept. 30, 2020. The company’s total losses this year amount to CA$230.84 million ($175 million/€147 million). TGOD last March suspended production at its processing facility in Quebec as it scaled back its marijuana business, blaming a slowdown brought on by the COVID-19 pandemic.
Traded on the Toronto Stock Exchange, TGOD is licensed under Access to Cannabis for Medical Purposes Regulations governing the cultivation of medical cannabis in Canada.