Green Organic Dutchman Stock (TSE:TGOD) (OTCMKTS:TGODF) is in dire need of groundbreaking catalysts if it is to bounce back after taking a significant hit over the past year. The stock is languishing near all-time lows after a roller coaster 2019. The plunge coincided with a sell-off wave gripping the overall cannabis industry.
Green Organic Dutchman Stock Catalysts and Price Analysis
Widening net loss is one of the tailwinds that continued to take a toll on Green Organic Dutchman stock sentiments. Amidst the disappointment on the earnings front, Green Organic Dutchman has continued to strengthen its prospects in the cannabis industry. For starters, the company has made its much-awaited entry into the recreational cannabis industry.
Construction of facilities to ramp up cannabis cultivation and processing has also come into play as the company seeks to secure its future and prospects in the multibillion-dollar industry. For instance, the company has already commissioned a 20,000 square foot indoor cultivation facility in Ancaster. Likewise, Green Organic Dutchman stock has strengthened its balance sheet through capital raises.
Amidst the milestones on operational efficiency, Green Organic Dutchman stock has remained subdued amidst soaring selling pressure. After plunging by more than 50% to lows of $0.52, the stock might as well have hit bottom and due for a correction as a bounce-back play.
To avert further slide, Green Organic Dutchman stock will have to rise and find support above the $0.80 mark, the immediate resistance level. A rally followed by a close above the resistance level should fuel a rally as a bounce-back play.
Failure to take out the $0.80 resistance level would leave the stock susceptible to further drops in continuation of the long-term downtrend.
About The Green Organic Dutchman
Green Organic Dutchman casts itself as a premium certified organic cannabis company engaged in the cultivation and production of cannabis and its derivatives. In Canada, the company is currently working on expanding its product portfolio with the launch of next-generation cannabis products. the company also maintains operations in Europe whereby it is currently distributing premium hemp CBD oil through HemPoland
Ancaster Facility Construction
Green Organic Dutchman has, in the recent past, ramped up operations on the construction of the cannabis production facility in Ancaster. The facility is at the center of the company, becoming a leader in the cultivation processing and distribution of premium hemp products.
Similarly, the company has closed a $42.7 million credit facility with Maynbridge Capital Inc. The credit facility consists of $27.7 million in senior secured term loans and an additional uncommitted $15 million senior secured term loan. The Green Organic Dutchman intends to use net proceeds from the credit facility to finance the completion of its processing facility in Ancaster and for general corporate purposes.
The closing of the credit facility came hot on the heels of the company closing a $27.6 million bought deal upon the issuance of 36.8 million units priced at $0.75 a unit. Proceeds from the offering are also to go towards completing the construction of the processing facility in Ancaster.
British Columbia Purchase Order
The Green Organic Dutchman is ramping up the construction of the Ancaster facility to support a big purchase order it has received from the BC Liquor Distribution Branch. With the purchase order, the company can now distribute its products to 527 retail locations across five provinces in Canada.
“We believe the province represents an enormous market opportunity for our brand. As we continue ramping up production, we remain focused on expanding our distribution channels and achieving our goal of distributing nationally in Q1 2020,” commented Brian Athaide, CEO of TGOD.
Similarly, the company has obtained a license amendment from Health Canada that opens the door for it to commence cultivation at its hybrid greenhouse in Valleyfield, Quebec. The company will now be able to cultivate cannabis in a state of the art 46,500 square feet greenhouse.
By ramping up cannabis cultivation and processing operations, the company should be able to enhance revenue growth to curtail the widening of net loss. The company generated a $20.1 million net loss in the quarter, which consequently triggered a cost-cutting drive of $3 million per quarter.
While Green Organic Dutchman stock has been beaten up over the past year, the worst looks to be over for shareholders in 2020. The construction of the Ancaster cannabis facility has the potential to strengthen the company’s operations, especially on the signing of a massive purchase order with British Columbia.
The company has the financial muscle to pursue strategic initiatives as well as ramp up operations in the cannabis sector in pursuit of revenue opportunities. In our view, the stock has hit a bottom, and due for a correction higher as underlying fundamentals continue to improve.
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Disclosure: We have no position in Green Organic Dutchman stock and have not been compensated for this article.
What Do Investors See In Medical Marijuana Stock (OTCMKTS:MJNA)?
Medical Marijuana Stock (OTCMKTS:MJNA) has emerged as one of many investor’s favorite pot stocks in the legal cannabis universe in 2020. The stock is already up about 10% in 2020, demonstrating how investors have warmed up to the stock early on in the New Year.
Following a disastrous 2019, cannabis investors lost money but have also learned that their best bets are stocks with strong fundamentals. They are looking for companies that have positioned themselves well in the cannabis industry and have what it takes to go for the opportunities. That is why MJNA stock is catching a lot of investor attention in 2020 because of how it has positioned itself in the cannabis market.
Robust revenue growth and strong financial position have also helped put MJNA on the radar of investors hunting for quality cannabis stocks. Revenue at MJNA more than doubled from $26.5 million in 2017 to $60 million in 2018. MJNA is also not in financial distress as may be the case with other cannabis companies out there. The company finished the third quarter, the most recent reported period, with $5.5 million in cash reserves.
Moreover, MJNA has recently taken steps to expand into new international markets and invest in companies that are leaders in their segments. These prudent actions are helping lift Medical Marijuana stock as more investors learn about them.
About Medical Marijuana stock
Is Tilray Inc (NASDAQ:TLRY) A Buy Or Sell?
For Tilray Inc (NASDAQ:TLRY) and the rest of cannabis stocks, 2019 was no doubt a bad year. But 2020 is shaping up to be a promising year for the stock. To start with, Tilray stock has already gained 8.35% year-to-date. If that says anything, it shows following the broad selloff in Tilray stock last year, we’ve got to a point where sellers are giving way to buyers in the stock.
There are several catalysts that should continue driving NASDAQ:TLRY as you’re about to see. First, below is a brief profile of the company we’re discussing.
Tilray is a Canada-headquartered global cannabis company. It is engaged in activities of cannabis cultivation and processing as well as marketing and distribution of cannabis products. Tilray already has several cannabis products brands to its portfolio. It operates across five continents through subsidiaries in Canada, Australia, Germany, and Portugal.
Following the broad collapse of cannabis stocks in 2019, investors are looking for cannabis stocks that can make a positive impact on their portfolios in 2020. Tilray stands out as an attractive cannabis stock pick in 2020. Here are some of the exciting things about the company.
Tilray CEO sees a bright future for the cannabis industry
On January 25, Tilray CEO Brendan Kennedy spoke on Bloomberg. In that interview, Kennedy framed a rosy outlook for the…
Is Cronos Stock (TSE:CRON)(NASDAQ:CRON) A Buy?
Cronos Stock (TSE:CRON)(NASDAQ:CRON) stock fell 9.22% on January 24, marking its steepest decline so far in 2020. The stock plunge followed an important disclosure that you would only expect from a company that is trying to be straight and transparent with investors. Here’s what happened.
On January 22, after market close, Cronos made a regulatory filing detailing changes in its executive team. In that SEC filing, Cronos revealed that David Hsu and William Hilson have stepped down as its chief operating officer and chief commercial officer, respectively. Unfortunately, some investors read bad news in the executive exits and sold their shares in Cronos.
But a careful reading of the filing doesn’t seem to raise any red flags. Therefore, the big stock plunged points to investors panicking to the degree of responding to a mosquito bite with a missile.
There is no doubt that 2019 was a difficult year for cannabis stocks and Cronos Stock is no exception. But before the uncalled for reaction to Cronos’s regulatory filing, we had been at a point where sellers were starting to give way to buyers in Cronos stock. The stock has gained about 8.0% in the past one month. It had gained more than 13% year-to-date before the January 24 big selloff.
About Cronos Stock
Cronos Stock is a Canada-based global cannabis company. Cronos operates through subsidiaries and…