The cannabis sector may have been struggling over the past months due to a range of issues, but the coronavirus pandemic has actually resulted in a rise in sales. Hence, some companies are probably making important moves. In a new development this week, Green Organic Dutchman (TSX:TGOD) (OTCQX:TGODF) launched a new organic product.
Announces New Product Launch
The company revealed that the product in question is targeted at the ‘mainstream’ consumer. In other words, it is a product that is meant for consumers who aren’t looking for premium quality cannabis, and according to the announcement, the product seeks to meet the needs of ‘regular users.’
The company announced that the product that is going to be launched first is going to be of the Rotterdam OC Indica strain and will be available in 1-ounce packs. In addition to that, TGOD also pointed out that the product is initially going to be launched only in Quebec. Additional products, as well as launches in new markets, are going to be announced by the company in the coming months.
The company has long been associated with premium cannabis, but it is difficult to produce on a large scale. That could have been the reason behind the latest move from TGOD.
The company also announced its financial results for the first fiscal quarter on Wednesday. In Q1 2020, the company generated revenues of $3.06 million, which reflected a rise of as much as 27% from the prior-year period. On the other hand, TGOD posted an operating loss of $15.3 million in addition to a net loss of $73.4 million. That is a considerable improvement from the $17.7 million in operating loss and $144.8 million in a net loss that the company had generated in the prior-year period.
However, that is not all. The company also managed to reduce its administrative expenses by as much as 27% year on year, and that tallies with TGOD’s strategic plan to become profitable in the near term.