It’s true that we have written about The Green Organic Dutchman ( ) having no revenue while also not growing any substantial amount of cannabis. Regardless of this, they have they been able to market their company to investors and move paper.
Through a creative series of hybrid public/private placements the company had more than 4,000 investors on-board pre IPO, TGOD has a cash position of $336 million based on its ability to raise money.
During 2018 a number of cannabis IPO’s have had blue sky breakouts including: TGOD, Charlotte’s Web (CWEB.C), Tilray (TLRY.Q) and, Green Thumb Industries (GTII.C). However lately the hype has died up a bit recently with Canopy Rivers (RIV.C) and (AUSA.C) not hitting expectations of many investors. However, Plus Products seems to have a chart indicating the hype and excitement of a few months ago.
Revenue & Share Structure
The company filed preliminary prospectus back in August, seeking to raise up to US$15 Million.
According to their prospectus, the company did $2,450,335 in revenue of Q1 & Q2 2018 combined and have assets valued at $6,756,495.
According to the prospectus, the company’s product offerings are currently contained within a single product line: infused gummy candies. Within that product line the company offers three primary SKUs consisting of Sour Watermelon (100mg THC, 0mg CBD), Blackberry Lemon (90mg THC, 10mg CBD), and Pineapple Coconut (<2mg THC, 100mg CBD).
Along with these flagship products, the company will occasionally launch Limited Edition SKUs such as Sour Blueberry, Rainbow Sorbet, and Vanilla Rose.
All products offered by the company are packaged in aluminum tins and sealed inside re-sealable child-resistant, tamper-evident bags. Each tin contains twenty gummies with approximately 5mg of cannabinoid content in each serving.
The California Advantage
California is the largest US state by population with a total of 39.6 million people, compared to Canada’s population of 36.7 million it’s no wonder why this market is so sought-after.
California contains some of the most sophisticated and discerning cannabis consumers in the world making it, in Plus Products view, the most competitive market for cannabis products and brands. The largest brands in California will likely be positioned to become the largest cannabis brands in the United States and ultimately across the globe.
According to BDS analytics, In California, the cannabis edibles sector had $306 million in legal retail sales from March to December 2017, representing approximately 13% of all cannabis retail sales in the state.
As the market moves to an adult-use recreational market, edibles are expected to increase to at least 15% of all retail sales based on case studies from states which have legalized adult-use cannabis sales including Colorado and Washington. This trend is already showing as edible sales have already grown to approximately 16% of all cannabis retail sales in California in the first half of 2018.