TGOD stock has dropped despite The Green Organic Dutchman (TSX:TGOD) (OTCQX:TGODF) announcing high demand for its product following its Ontario launch.
TGOD Stock Unaffected By Strong Sales
The company began shipping its high THC strain, Unite Organic, to Ontario retailers in what marked TGOD’s official entrance to the Canadian recreational market. Today, The Green Organic Dutchman is reporting that feedback from retailers has indicated consumer demand is exceeding expectations and that it will accelerate shipments as a result. Despite the positive news, TGOD stock is down slightly by 1.48% to $2.66.
“We are thrilled to witness such strong sales and positive feedback from retailers and consumers across Ontario, Canada’s most populous province at 14.32 million people. We can see from the initial response that demand for high-quality flower is strong,” said Brian Athaide, CEO of TGOD, adding that “our team is working hard to ramp up production of our premium organic products as we get ready to expand distribution with additional strains and product forms as well as to other provinces in the months ahead.”
The announcement marks the second time this week that TGOD stock has been largely unphased by positive reports regarding the company. On Monday, the results of a preliminary study in conjunction with Caliper Foods revealed that a joint CBD product was highly soluble, which bolstered The Green Organic Dutchman’s plans to commercialize cannabis dissolves. However, TGOD stock dropped 2% during Monday trading, similar to today’s movement.
Consumers Eager For Organic Cannabis
The high demand indicates that customers are not afraid to dip into their pockets for high quality, organic cannabis product, which is an integral part of TGOD’s philosophy on cannabis cultivation. Investors in TGOD stock can take confidence in a study from Hill & Knowlton earlier this year, which reported that over 50% of recreational consumers stated that it was important that their cannabis is organically cultivated.
TGOD shares should be set for a further boost once its Valleyfield facility becomes fully operational next year. The company is citing 2020 as a target for national distribution, and if demand echoes that of Ontario’s consumers, the future is looking bright for The Green Organic Dutchman.
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