The Green Organic Dutchman Holdings (TSX:TGOD) (OTCQX:TGODF) has received a 100% eco-friendly organic rating, but TGOD stock is still struggling.
TGOD Stock Down Despite Organic Rating
Corporate Knights, an eco-capitalism publication based in Toronto, gave TGOD the 100% rating in an article entitled “The greening of pot: Can power-hungry cannabis sector turn over a new leaf?” and cited the company’s projected million-square-foot, ecologically efficient greenhouse in Valleyfield, Quebec as a leading factor behind the rating. Currently, The Green Organic Dutchman is one of only a handful of cannabis companies in Canada that is licensed to produce certified organic cannabis.
According to the article, growing cannabis in a greenhouse can save up to as much as 90% on electricity usage and as a result, reduce the greenhouse gasses (GHG) output drastically. Compare this with some of the largest names in the Canadian market, such as Aurora (TSX:ACB) (NYSE:ACB) and Canopy Growth (TSX:WEED) (NYSE:CGC), both of which have grids at about 50% coal.
Despite the positive rating, TGOD stock is down 3% during early Friday trading as its woes continue.
Snippets of Good News Not Helping TGOD Shares
Earlier this month, the company announced its second-quarter results, which subsequently saw TGOD stock slide over 15%. The company’s Q2 revenue of $2.9 million CAD was actually an increase of 20% from the previous quarter. However, a net loss of $16.4 million CAD, compared to $9 million CAD last year, sent TGOD shares sliding as investors were underwhelmed by the results.
TGOD stock had enjoyed a slight boost at the beginning of the month after the company applied for listing on the NASDAQ, but these snippets of good news have done little to help the company’s shares, which have been struggling throughout the year amid a slumping market. Following legalization last October, TGOD stock was valued as high as $5.25, but the ongoing issues in the market, such as the CannTrust (TSX:TRST) (NYSE:CTST) scandal and underwhelming customer demand, have seen its value shed as much as 60% since.
TGOD shares are currently valued at $2.37, and with The Green Organic Dutchman expected to complete construction on two new sites in the near future, increasing production capacity by over 200,000 kilos, perhaps the future for TGOD stock isn’t so bleak.
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