Download now: Cannabis Cash

Don’t Underestimate The Green Organic Dutchman (TSX: TGOD)

The Largest Certified Organic Cannabis Producer is a Sleeping Giant

Written by Jeff Siegel
Posted May 23, 2018 at 9:10AM

Here’s something I’ve never understood …

Cannabis consumers who smoke just about anything, but go out of their way to eat only natural and organic foods.

How can you take the time and effort to ensure your food is clean, but not your weed?

It makes no sense.

Especially when you consider that as much as 70 percent of pesticides found in some cannabis is inhaled when smoked.

Jeffrey Raber, a chemist from the University of Southern California, commented on this in a piece that was published in the Eureka Times-Standard.

“I think that what’s so alarming to us is that such a huge amount of pesticide material could be transferred,” Raber said. “And, you have to consider that when you inhale (something), it’s much like injecting it directly into your blood stream.” …

Raber said it’s important to remember that smoking a marijuana bud that’s been sprayed with chemicals is far different than eating a non-organic tomato. First and foremost, he said, there are no controls over what’s sprayed on marijuana crops. And, while most people would rinse off a tomato before eating it, they can’t wash a bud before putting it in their pipe. The body also has filters in place for things that are ingested, he said, but not for what’s inhaled.

“You don’t have the first pass metabolism of the liver,” he said. “You don’t have the lack of absorptivity going through the stomach or the gut lining. It’s a very different equation when you’re inhaling.”

As a cannabis consumer, I'll never inhale or eat any cannabis product that has not been produced in a clean, organic manner.  And I'm not alone.

The Biggest Organic Cannabis Player in the World

As the legal cannabis market continues to flourish, more and more folks are demanding clean weed. And there are plenty of organic producers throughout North America that are more than happy to supply it. But most are quite small and cannot scale in a way that will allow them to compete with non-organic producers on pricing. Except one. And that company is The Green Organic Dutchman (TSX: TGOD).

The Green Organic Dutchman is an organic cannabis producer in Ontario, Canada, and insiders have been drooling all over this thing since the IPO was announced last year. And the reason is simple: The Green Organic Dutchman can produce massive volumes of organic cannabis cheaper than anyone else in the world.

Utilizing some of the most advanced greenhouse designs and advanced robotic systems in the space, The Green Organic Dutchman isn’t some little backyard farm. This is a massive, industrial-scale operation designed to corner the market on organic cannabis, not only in Canada but across the globe.

You see, earlier this year, Aurora Cannabis, one of the biggest players in Canada, acquired a 20% interest in The Green Organic Dutchman.

Aurora, which boasts a $5 billion market cap, has one of the largest global footprints in the cannabis space, with direct access to Denmark, Italy, Germany, and Australia. And it basically just opened up an international market to The Green Organic Dutchman.

Under the terms of the agreement, The Green Organic Dutchman also landed an immediate purchase order for 20% of future sales.

Make no mistake; this is a huge deal, and quite frankly, I wouldn’t be surprised to see Aurora just buy the company in a couple of years, giving early investors a nice little profit.

Of course, hardly anyone is paying attention to these details.

And here’s another detail that barely anyone noticed …

Last week, The Green Organic Dutchman received its organic certification from Ecocert Canada, which is an internationally recognized world-leading organization in organic certification.

Basically, with this certification, TGOD has successfully positioned itself as the world’s largest certified organic producer.

This actually reminds me of the early days of Whole Foods, when it was really the only food retailer selling large quantities of certified organic food. It had zero competition, and early investors made a fortune.

I foresee the same thing happening with The Green Organic Dutchman.

For the sake of full disclosure, I must tell you that I do own shares of this stock. But quite frankly, why wouldn’t I? Only a fool would sit on the sidelines of what could easily end up being one of the most successful, and profitable cannabis brands in the world.

Comments

Hydrogen Fuel Cells: The Downfall of Tesla?

Question of the Day

Which industry in California is responsible for the most energy usage?