TGOD stock is on the rise at present; shares are up 7.87% and selling for $2.75 USD on the OTCQX. As a sector-wide bearish trend hit the cannabis market, The Green Organic Dutchman (TSX:TGOD) (OTCQX:TGODF), along with many of its peers, declined significantly in the latter half of May.
In that period, TGOD stock lost approximately 20%.
TGOD Stock: News Affecting Shares This Week
Earlier in the week, the marijuana sector selloff was extended after Friday's hearing from the FDA on cannabidiol. The US Food and Drug Administration discussed cannabidiol—the nonintoxicating ingredient known as CBD—however, it did not reach a clear goal for standardization or evidence regarding its health benefits and safety.
Shares across the sector reacted to this deflating news, and TGOD stock closed at $2.55 USD on the day.
However, good news came from Deloitte, which released its annual report on the cannabis industry. The accounting firm estimates that phase II cannabis legalization in Canada could create a consumer market for edibles and derivative products worth approximately $2.7 billion CAD ($2.0 billion USD) annually.
>> Tilray Stock Trades Near 2019 Low, Down 50% This Year
Derivatives bring higher margins and should generate higher profits for retailers than dried flower, which is currently legal. Potentially, today's surge is reflecting this news; the bullish sentiment gives a needed boost to the cannabis sector as a whole.
TGOD Stock to Supply Alberta
At the end of May, The Green Organic Dutchman announced that it has secured a cannabis supply agreement with Alberta Gaming, Liquor & Cannabis (AGLC). Effectively, this means it will expand distribution across Canada by supplying the province with its product. AGLC will sell its cannabis flower under the brand Alberta Cannabis.
Brian Athaide, CEO of TGOD, said the following:
"Alberta is an important market for us as we continue to expand our distribution channels across Canada [...] With our production facilities in Hamilton, Ontario, and Valleyfield, Quebec coming online in phases, we are thrilled to start distributing TGOD's premium certified organic cannabis to AGLC."
This news caused a brief surge in TGOD stock; unfortunately, the industry-wide bearish trend soon took over shortly after.
It's a volatile time for TGOD stock. Shares appear to be pulled in different directions due to varying pieces of industry news. What are your thoughts on this?
>> Read More Green Organic News
Featured Image: Canva
