CORAL GABLES, FL / ACCESSWIRE / September 4, 2018 / The clock is ticking for Canada to flip the green light on for recreational cannabis sales across the country. Countless marijuana stocks are gaining attention as a number are ramping up with agreements for expanded distribution and new avenues of growth via agreements with wine and spirits companies.
A large catalyst behind this explosive growth is the ongoing legalization of cannabis for both medical and recreational uses. This is not just in Canada but across the globe as well. A number of countries such as Australia, Israel, and Germany, as well as numerous regions within the United States are experiencing the “green revolution.”
The Green Organic Dutchman (TGODF) (TGOD) announced this morning that it has agreed with Aurora Cannabis Inc. (OTCQX:ACBFF) (TSX:ACB.TO) to extend Aurora’s exercise deadline of its first milestone option under the TGOD Aurora Investor Rights Agreement by 6 weeks to October 12, 2018. The first Milestone Option entitles Aurora to acquire an additional 8% of the common shares of the Company.
“The Aurora partnership has been incredibly beneficial for both parties to date,” said Brian Athaide, TGOD’s CEO. “In addition to the organic supply agreement, the value of Aurora’s initial investment has increased nearly five-fold. In turn, the assistance provided by the Aurora team has helped accelerate our progress across all divisions, and we look forward to continuing our strategic partnership as we work towards building the largest organic cannabis brand in the world.”
Shares of The Green Organic Dutchman are up by more than 7% on Tuesday morning after this announcement. Other news on additional beverage companies like Diageo (DEO) continues to push positive sentiment in the market for cannabis stocks. This is in addition to the growth of the M&A climate that this industry has been seeing since Canada’s confirmation of recreational legalization earlier this year.
This sentiment has been bolstered by news last year that alcohol giant Constellation Brands (STZ) took an interest in Canadian-based Canopy Growth (NYSE:CGC) (TSX:WEED.TO). This year saw the wine and spirits giant increase its stake to nearly 40% with an addition of roughly $4 billion into the cannabis producer.
Earlier this month, Canopy CEO Bruce Linton stated, “It would be a pretty terrible job to be the CEO of a beer or spirits company and not have a cannabis strategy.”
This statement in a CNBC interview helped lead a rally in cannabis stocks before the end of the month. “We have tried to lead the process of exiting [U.S.] prohibition so that we can be very disruptive to pharmaceutical, because there are a lot of ingredients that have not been harnessed under the last 95 years of prohibition,” Linton said.
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Except for the historical information presented herein, matters discussed in this article contain forward-looking statements that are subject to certain risks and uncertainties that could cause actual results to differ materially from any future results, performance or achievements expressed or implied by such statements. MAPH Enterprises LLC which owns www.MarijuanaStocks.com is not registered with any financial or securities regulatory authority and does not provide nor claims to provide investment advice or recommendations to readers of this release.
MAPH Enterprises LLC, which owns www.MarijuanaStocks.com, may from time to time have a position in the securities mentioned herein and may increase or decrease such positions without notice. For making specific investment decisions, readers should seek their own advice. MAPH Enterprises LLC, which owns www.MarijuanaStocks.com, may be compensated for its services in the form of cash-based compensation or equity securities in the companies it writes about, or a combination of the two. The principles of MAPH participated in the IPO for The Green Organic Dutchman Holdings, Ltd. (TGOD) & own a collective 353,624 shares which are restricted for 6 months from the IPO date of 5/2/2018, 30,000 free trading shares & 221,898 warrants. The principals of MAPH intend to sell their positions in (TGOD) for profit. MAPH nor any of its principals have been compensated for any material related to (TGOD). Since the Ipo Jason Spatafora has purchased 115,010 shares of TGODF to add to the above position.