The Green Organic Dutchman (TSX: TGOD) this morning announced that it is giving up the ghost in regards to its medical cannabis program. The company announced that it is working towards transitioning its medical program to that of a wholesale program, which is likely being done in an effort to cut costs.
Commenting on the transition, TGOD indicated that it is making the move to be aligned with “other pharmaceutical products distribution models.” The company will be relying on its national supply agreement with Medical Cannabis by Shoppers for its medical cannabis distribution going forward, with all products being made available on the platform.
The company also identified it has other arrangements in place with medical distributors and clinics, however details were not provided. The firm did indicate that it intends to increase its presence within the medical market however.
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Commenting on the transition, interim CEO Sean Bovingdon stated, “Shifting to a wholesale model not only makes sense from a business standpoint, allowing us to invest working capital in other growth opportunities, but it also gets us closer to our goal of eliminating the stigma that surrounds the plant within certain medical circles.“
The transition is expected to be completed by April 1.
TGOD last traded at $0.30 on the TSX.
Information for this briefing was found via Sedar and The Green Organic Dutchman. The author has no securities or affiliations related to this organization. Not a recommendation to buy or sell. Always do additional research and consult a professional before purchasing a security. The author holds no licenses.
