TGOD Stock Hovers Around New Lows Despite Key Developments

TGOD Stock

The struggles of 2019 seem to be a thing of the past for many cannabis stocks, but one stock that still seems to be struggling is TGOD stock, which hit its 52-week low recently. Considering the recent developments with The Green Organic Dutchman (TSX:TGOD) (OTCQX:TGODF), the state of the stock is perhaps a bit of a surprise for many market watchers.

Key Developments

Back in December, the company closed a deal with Maynbridge Capital, by way of which it got a senior secured credit line facility of $42.7 million. Out of that, $27.7 million will be in the form of an 18-month term loan and the remaining $15 million is going to be disbursed as a loan if TGOD meets certain targets.

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In January, there were other developments at The Green Organic Dutchman that must have had an effect on its stock price as well. The company consolidated its leadership positions considerably, and as part of the shakeup, two executives will no longer be with the company.

Csaba Reider left his position as the President, and CEO Brian Athaide absorbed the role in his portfolio. Mike Gibbons stepped down from his position as VP of sales, and his responsibilities are now going to be assumed by Robert Cora, the VP of Medical Commercialization. The move comes as a part of TGOD’s cost-cutting measures.

However, it should be noted that not everyone is pessimistic about TGOD stock. There are analysts who actually believe that The Green Organic Dutchman could well prove to be the stock with the highest upside this year. It is among the smaller companies, and while it did suffer last year, there are certain factors that need to be kept in mind. The company is involved in the rather niche organic cannabis space, and in that particular space, it is one of the biggest players.

It has now become abundantly clear that there is a demand for organic cannabis, and people are prepared to pay more for it. In such a situation, it could only be a good thing for the Dutchman, and investors could keep an eye on TGOD stock.

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