TORONTO, January 29, 2019 -- The Green Organic Dutchman Holdings Ltd. has announced that the Danish Medicines Agency, the government body responsible for issuing cannabis-related licenses, has granted an initial cannabis business authorization to TGOD’s joint venture production partner Knud Jepsen. This license will allow TGOD’s JV partner Kund Jepsen to immediately begin importation of starting materials and to begin research and development related to the creation of elite cannabis genetics. Per the terms of the recently completed definitive agreement, Knud Jepsen will submit a request to the Danish Medicines Agency for the assignment of this license to the TGOD-Knud Jepsen Danish joint venture, a process that is already underway and expected to be completed within the coming weeks.
The initial license, issued under the Danish Medicines Agency’s Development Scheme, enables the importation of starting materials, the receipt, possession, cultivation and processing of cannabis, and distribution and export of analytical samples to foreign labs. After the cultivation and harvest of three confirmed and consistent crops, an additional authorization license will be issued allowing for the sale of authorized medicinal cannabis products.
“We are incredibly pleased with the quick receipt of this license from the Danish Medicines Agency,” commented Frands Jepsen, Knud Jepsen’s CEO. “The initial license was received promptly after the submission, and the Danish Medicines Agency provided great transparency during the process. Through 80 years of trusted operations in Denmark, we’ve built excellent relationships with all parties involved and plan to work closely with the Development Scheme.”
The Denmark-based TGOD/Knud Jepsen cannabis production JV will initially consist of a 37,500-square-foot phase one production facility with an expected annual capacity of 2,500 kgs per year with an initial focus on supplying the Danish medical market. The purpose-built hybrid greenhouse facility will be located within Knud Jepsen’s large-scale operations in Hinnerup, Denmark, and the property includes significant room for expedited expansion on Knud Jepsen’s land as additional global markets open and demand dictates. The previously contemplated (see June 27, 2018 news release) 25,000 kg of production in Denmark will shift to various lower cost production jurisdictions throughout Europe. TGOD will have the exclusive right to all cannabis-related production from the JV through a guaranteed offtake agreement.
TGOD and Knud Jepsen have also formed a genetics-focused JV, which will consist of a 5,500-square-foot R&D facility for cannabis-related trials and testing to produce and house elite materials. Knud Jepsen’s laboratory will be retrofitted to begin robust R&D trials with the goal of patenting and commercializing novel discoveries. The facility will be ready to receive cannabis starting materials in the coming weeks.
“Knud Jepsen is a proven leader with a track record of excellence in genetic discoveries, R&D and large-scale cultivation,” commented Brian Athaide, director and CEO of TGOD. “TGOD is working with Health Canada to export starting materials from Canada into Denmark and we look forward to accelerating our expansion throughout Europe.”
