The Green Organic Dutchman Holdings (TGOD) is in the process of selling its Valleyfield cultivation and processing facility in Valleyfield, Quebec, Canada.
TGOD expects the Valleyfield facility sale to "increase its financial flexibility in order to reduce its debt and capitalize on future opportunities," the company says. TGOD anticipates closing a purchase agreement for the facility by the end of June.
"We are pleased with the level of bids for the full Valleyfield facility, which upon closing would allow us to potentially retire all debt and provide additional expansion working capital," says Sean Bovingdon, CEO and interim CFO at TGOD. "Furthermore, most of the offer include the ability for TGOD to leaseback the small portion of the Valleyfield facility we are currently using, such that there will be minimal disruption to our current operations at the Valleyfield facility and no requirement for the company to expend capital for any relocation."
To date, TGOD has realized $2.64 million in various excess asset sales, the company says.
U.S. Implications
In light of the U.S. House of Representatives' passage of the the SAFE Banking Act, continued state decriminalization and legalization, TGOD says it continues to explore strategic options towards a potential entry into the U.S. market.
Among those considerations are potential acquisition and partnership opportunities; expanding the company's board from six to seven directors; and applying for listing on the Canadian Stock Exchange, which would allow for investment capability into the U.S., the company says.
"We are excited by the progress in quality, consistency and potency of our flower portfolio and remain optimistic about the company's financial prospects as we expand distribution and add new SKUs to boost our sales in the coming months," Bovingdon says.
