This is the Next Pot Company Investing in Europe

With acquisition of European hemp grower, this company is looking to expand.

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The Green Organic Dutchman Holdings Ltd. (TSX:TGOD) (US:TGODF) is turning toward Europe, and has found a strategic partner there. The company closed a deal to acquire European hemp company HemPoland yesterday. The deal will bring TGOD shareholders immediate accretive revenue, and lead to a new vertical for TGOD.

HemPoland is already a leading producer and marketer of CBD oils in Europe. This acquisition will give TGOD access to that revenue, a distribution network, new technology, and a top-selling brand. It will also give TGOD access to a customer-base and possibly to European institutional money.

TGOD paid US$7.75 million in cash for just shy of 2 million restricted shares and additional performance-based consideration. The company is looking to invest another US$10.3 million in HemPoland to help it expand.

About the Green Organic Dutchman Holdings Ltd.

The Green Organic Dutchman Holdings Ltd. is a Canadian research & development company that grows medical marijuana. It has a funded capacity of 170,000 kg, and is building 1,382,000 sq. Ft. of new harvesting facilities in Ontario and Quebec Canada, and in Jamaica.

TGOD and Aurora Cannabis Inc. (ACB.TO) have a strategic agreement. Aurora invested roughly C$78.1 million for a 20% off-take agreement on Canadian production. Aurora will sell portions of TGOD’s future production.

In total, TGOD has raised C$350 million to fund its operations and growth.

Pot Companies Looking for International Growth

Like many in the space, the company is aiming for international expansion. Many companies are entering the sector with the hopes of raising institutional funds in Europe. Those dollars have been hard to raise in the U.S. Institutional dollars are thought to be more stable for share price than retail investments. A similar acquisition announcement was recently made by Organigram.

Written by Rob McLean

Rob loves staying on top of developments in the cannabis sector, and always has his finger on the pulse of real estate markets.

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