Shares of Green Organic Dutchman Holdings (OTCMKTS:TGODF) surged 33% earlier this week after the company indicated that it has entered a supply agreement with Shoppers Drug Mart Inc to supply its medical marijuana products through its online sales platform.
Green Organic Dutchman signs Three-year agreement with Shoppers
The cannabis company stated that the partnership with the largest pharmacy network in Canada will enhance its position in the medical cannabis market. Equally it offers a future growth opportunity considering the Canadian medical marijuana market is still evolving.
Green Organic Dutchman is expected to supply the Loblaw owned Shoppers Drug matter with a range of its approved organic medical marijuana products. The products include teas, vapes as well as powder infusers that are dissolvable. The cannabis operator indicated that the term of the agreement will be three years but there is a renewal clause for another extra two years.
Health Canada approves growing at Valleyfield greenhouse
Early this month the company announced that Health Canada had approved the totality of Valleyfield facility. So far 24 zones have been licensed and Green Organic Dutchman now has the flexibility of expanding its operations quickly at the Valleyfield greenhouse.
The operator is planning to leverage sections of licensed space to transfer some of the company’s processing activities that are currently handled at the Ancaster and also those intended for third party outsourcing for its to optimize costs as well as production timelines of cannabis derivatives. As a result this will speed up the supply chain schedules and also minimize bottlenecks in the production of different high demand products like teas and infusers.
The greenhouse is designed for organic growing and it boasts of ultramodern climate control, LED lighting as well as water recapture systems. With the market growing green Organic Dutchman is planning to slowly restart its growing operations at the Valleyfield facility where operations are temporarily paused.