TGOD stock is trading higher by 1.40% in early trading after The Green Organic Dutchman (TSX:TGOD) (OTCQX:TGODF) announced its entry in the US market through a co-founding investment in Califormulations LLC.
Are CBD beverages on the horizon for TGOD?
Newly Founded Califormulations Based in Columbus
Califormulations will have its base in Columbus, Georgia and will work with branded global companies to produce concept-to-shelf commercialization. This includes technical services, formulation development, and coordination of contract manufacturing, as well as in-house pilot scale production. The Green Organic Dutchman and Califormualtions will work together to accelerate the launch of TGOD’s organic hemp-infused CBD beverages as per the local laws and regulations.
TGOD CEO Brian Athaide stated that the company is pleased to partner with Califormulations in the development of its hemp-based CBD beverages. He added that with the US CBD market estimated at around $20 billion, this move will give a solid future to premium TGOD products. The CEO indicated that the company wants to partner with industry leaders and he believes that forward-looking strategic partnerships will help to capitalize on the CBD beverage market.
TGOD stock is trading at $4.32, up 1.40% on the TSX in Wednesday’s trading session. Meanwhile, on the OTC market, TGODF stock is up 1.20%.
Califormulations Strategy to Enter US Market
The choice of Califormulations is a strategic move to enter the US market as a leading beverage formulation and commercialization center. TGOD entered into its co-founded investment in Califormulations with Symerise Inc. Symerise will bring its expertise and its Laguna Beach and Teterboro beverage innovation centers to the deal. Together, TGOD and Symerise have offered a combination of debt financing and equity for the capitalization of Califormulations.
The investment in Califormulations demonstrates TGOD’s corporate strategy of capitalizing on brand differentiation. Califormualtions will, therefore, help The Green Organic Dutchman to manage its supply chains without having to invest in physical locations. The approach is consistent with the company’s long-term strategy that focuses on capital investments to grow the cannabis brand across the globe.
Last week, the company announced the opening of its second Jamaican retail store
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