Today, The Green Organic Dutchman Holdings (TGOD)(TGODF) announced that its joint-venture production partner, Knud Jepsen, secured initial cannabis business authorization from the Danish Medicines Agency.
As per the recently signed definitive agreement, Knud Jepsen will submit the request to the Danish Medicines Agency for assigning the license to the TGOD-Knud Jepsen joint venture. This process is in progress and expected to complete in the next few weeks.
The initial authorization allows Knud Jepsen to import materials immediately required for its research and development works and export analytical samples to foreign labs. However, to sell authorized medicinal cannabis products, the company will have to receive an additional authorization license, which will be granted only after cultivating and harvesting three confirmed and consistent crops.
In phase 1, the joint venture will begin its production in a 37,500-square-foot facility in Hinnerup, Denmark, with an annual capacity of 2,500 kilograms targeting only the Danish medical market. The property has significant scope for expansion.
Despite the announcement, TGOD was trading ~2.5% lower at 11:45 AM ET today. However year-to-date, the company’s stock price has increased 64.2% as of January 28’s closing price. Peers MedMen Enterprises (MME)(MMNFF), Acreage Holdings (ACRG)(ACRGF), and Canopy Growth Corporation (WEED) have returned 24.4%, 15.8%, and 83.6%, respectively. The Horizons Marijuana Life Sciences Index ETF (HMMJ), which tracks the North American Medical Marijuana Index, has returned 38.7%.