Cannabis producer The Green Organic Dutchman (TGOD) is no longer pursuing opportunities in Jamaica so it can focus on its struggling Canadian operations, the Mississauga, Ontario-based company said.
The company on Tuesday reported quarterly revenue of 3 million Canadian dollars ($2.2 million), while sales in Canada amounted to only CA$660,000 stemming mainly from a limited product assortment, according to a news release.
TGOD’s net loss for the quarter ending March 31 was CA$73.4 million.
The company disclosed the sale of its stake in Jamaica’s Epican Medicinals to another shareholder “for a nominal amount.”
TGOD said the decision boiled down to:
- Its history of operating losses.
- Developments in Jamaica restricting operations.
- A strategic decision to focus on Canadian operations.
The company said it will “no longer pursue opportunities in Jamaica.”
In a regulatory filing, TGOD reported an impairment loss on the Epican investment of CA$3.08 million “due to changing market conditions in Jamaica.”
“The company has also made a strategic decision to forgo expansion of proposed cultivating activities in Jamaica for export to prioritize the company’s Canadian operations …” according to the filing.
TGOD first announced an agreement to buy 49% of Epican in June 2018.
TGOD is the latest Canadian company to pull the plug on an international project after the deal failed to live up to expectations.
Some Canadian producers, including competitor Canopy Growth, spent heavily in far-flung areas of the world, where functional and regulated marijuana markets remain years away.
The Green Organic Dutchman trades as TGOD on the Canadian Securities Exchange.