View this email in your browser TGOD Shareholder Update: May & June



Dear shareholders and friends,



It has been a highly productive two months for us at The Green Organic Dutchman Holdings Ltd. (“TGOD”). We have hired a consumer packaged goods industry veteran as our President, added a senior consumer products executive as strategic advisor, and our partners, Ledcor, Eaton and Larssen are developing a full property expansion plan which has a full development potential of 1,600,000 sq. ft. Additionally, we hosted the first annual Hamilton Cannabis Investor Summit. It is safe to say that TGOD is moving forward at an aggressive pace, on all fronts. Expansion Update Our targeted break-ground date has been pushed back, we originally planned on breaking ground by June 30th. We are eagerly awaiting the final permits so we can begin construction and we will continue to provide updates as we work through the process with the help of our partners. We are in the final pre-construction phase of our 143,000 sq. ft. expansion and are eagerly awaiting final approvals.



To date, we have completed the following: Facility engineering to meet LEED certification, thereby becoming a sustainable, green, energy efficient producer

Energy and power plans and secured partnerships with local utility companies

Environmental and archeology studies

Building and automation plans for building 1 - 20,000 sq. ft. indoor facility

Building and automation plans for building 2 - 123,000 sq. ft. hybrid facility

Initiated procurement processes and began ordering equipment & materials

Beta tests on grow equipment and processes for our expansion

Hired and trained new grow team members for our expansion

Drilled new water wells on the property

Taken possession of the newly acquired, adjoining 75-acres property We have implemented rapid procurement processes that align with the construction schedules and upcoming milestones. Additionally, a significant portion of our materials are prefabricated, allowing for efficient and streamlined construction for many parts of our build out. Please find attached models of the expansion. Team Update On June 15th we announced following an extensive search, the appointment of Csaba Reider as the Company’s new President and Marc Bertrand as the Company’s new Strategic Advisor. Full press release available here.



Csaba Reider is a seasoned entrepreneur who brings over 35 years of national and global senior executive leadership experience in the highly competitive Consumer Packaged Goods industry (CPG). Marc is Consumer Products executive with nearly three decades of success in brand building, strategic licensing, international markets and manufacturing. Csaba and Marc have both spent significant portions of their careers focusing on facility buildouts and streamlining operations, both of which, are essential to becoming a high quality, low cost producer. The significance of our two latest additions will be discussed throughout this update. Industry Update & The Advantage Reider and Bertrand bring to TGOD Let’s look at the Colorado market first, then to where we believe the Canadian Cannabis Industry is heading to fully understand why we are making these decisions.



We look to Colorado, a crystal ball if you will, for many things in our industry as the first state to truly pioneer the legalization of Cannabis. Colorado is a perfect legal market to discover where Canada is likely heading with respect to extraction, concentrates, edibles, beverages (drinkables), and dried flower.



When we look at the Cannabis Industry as a whole in the United States, the average annual growth rate by sales is estimated at 25% Year Over Year (“YOY”), according to the ArcView group. Dried flower is expected to reach YOY sales of $3.3 billion by 2019, which puts it at a 46% growth rate in the States.



Looking back on the recreational edibles market in Colorado in 2016, there were sales of roughly $100 million, or $428 million for the United States. However, this market, according to BrightfieldGroup, is growing and growing fast. It’s estimated that this market will reach $1.85 billion by 2019, which puts it at an average YOY growth rate of 68%. That places edibles close to the top, making it one of the fastest growing segments of the entire cannabis market.



Using the same data and stretching out estimates over the next few years, it’s estimated that the US concentrates market is expected to reach just over $2 billion. That puts the concentrates market at an 84% YOY growth rate.



Now that is impressive!



We have established several of the most important segments of the cannabis market and where specifically the industry is growing the most. Now we can focus our attention on some specific key areas. But first, let’s ask a few questions to frame the next segment of this update and determine which market cannabis falls into. How are Cannabis products created? (Think manufacturing, packaging, branding)

How are these products packaged and shipped to the end consumer?

How will this happen in the future with recreational cannabis?

How do you optimize product quality and Q/A on a commercial scale?

How do you build out a production facility to be as efficient as possible?

How do you automate production to streamline processes?

How do you manage thousands of staff and what other industries does this relate to?

How do you become a high quality, low cost producer? At the end of the day, Cannabis is simply another CPG (Consumer Packaged Goods) industry and that is the industry we have looked at to find experienced senior level executives.



It’s our belief that as with any CPG industry we will head towards a high quality & low cost environment; however, to really create and take market share you need quality, scale, and a major differentiator. Typical CPG industries where the largest retailers are leading, specifically market to health conscious consumers. They market no artificial flavors, no artificial colors, and/or a completely organic product. Think Whole Foods. Do you know why? If you guessed these products demand a significantly higher premium, you are correct. According to the Organic Consumers Association, 58% of consumers prefer organic food. According to Consumer Reports comparing 100 organic and non-organic products, organic products commanded a 47% premium to non-organic products.



Amazon’s recent acquisition of Whole Foods, a premium brand specializing in natural and organic foods, supports our belief that consumers place tremendous value on premium and organic products. Whole Foods dominates the high end market and their products command higher premiums than competitors such as Wal-Mart, Kroger and SuperValu.



Amazon is one of the largest companies in the world, with revenues larger than many countries GDP. The online giant could have purchased any company, yet they selected Whole Foods. A premium brand specializing in natural and organic product. It is clear that Amazon believes the future is organic, so much so that they just bought one of the top organic brands in the world.



In our view, the Cannabis industry is no exception and our ability to grow premium organic product is in line with growing consumer trends.



Which is exactly why we have brought on Csaba Reider, a senior CPG industry executive with 35 years of executive experience and Marc Bertrand, a senior Consumer Products executive with 32 years of experience. Both Rieder and Bertrand have extensive backgrounds in brand building which will prove invaluable as we continue to build out TGOD’s organic product line.



Mr. Reider has experience building and operating large manufacturing facilities, including the 355,000 square foot food & beverage facility with SunPac Foods in Brampton, Ontario and streamlining Cott Corporation's operations across the country. The similarities between these two industries are hard to ignore. From efficient power management, lean manufacturing, quality assurance, and branding, Csaba has successfully navigated it all.



It’s no surprise that electrical costs are the largest and most expensive input. This is typical among many manufacturing industries and a challenge many management teams have had to overcome. Csaba’s experience with lean manufacturing, improving energy efficiency, and optimizing operations with efficient power management solutions will undoubtedly help us significantly reduce our electrical input and therefore our costs per kWh. This focus on energy efficiency aligns with one of our main goals; similar to any CPG industry, of becoming a high quality, low cost producer.



However, power is only a fraction of the bigger picture. We now have to turn our attention to quality assurance, product quality and brand differentiation to really stand out.



Typically, CPG industry private labels are not as popular as the major branded products; they have to continually prove their quality is equal to or greater than any branded product available. These smaller companies achieve this by allocating significant resources to quality assurance and product quality. Many CPG companies focus up to 80% of their efforts on product quality and quality assurance to reach the top. Marc Bertrand’s focus on operational excellence, product quality and delivering value to consumers was critical to MEGA's growth, which was sold in 2014 for over $500 million. While Csaba Reider’s proven track record of transforming companies through contract manufacturing, product quality, logistics, Six Sigma & lean manufacturing will be instrumental to TGOD’s ability to scale, with a focus on product quality and quality assurance in the upcoming recreational regime.



CPG industry players have to differentiate themselves through branding. Let's look to the Energy Drink market, where brand differentiation and understanding the consumer are the pinnacle of any one company’s success. Edibles and beverages are already moving towards this industry, and companies who understand the consumer will prevail.



Mr. Reider is one of the most recognized food & beverage (CPG) industry executives in the world. He took Xyience Energy Drinks from bankruptcy in 2006 to selling over $45 million per year worth of products before it was acquired by Big Red in 2014. He spent several years with COTT Corporation (NYSE: COT) and COTT Beverages Canada, one of the world’s largest food & beverage companies. During his time at COTT, while Vice-President of Global Sourcing and Six Sigma, he led the team that implemented lean initiatives that drove manufacturing efficiencies to far exceed industry metrics across 18 facilities in Canada. Mr. Reider increased efficiencies from 65% to over 85%, making the Canadian division one of the most efficient in COTT’s history. Due to this he was entrusted to manage a $1 billion dollar U.S. spend for the company. Csaba sat on the board of Associated Brands, a leading North American manufacturer and supplier of private label packaged foods and helped turn it into a major success, where it was later acquired in 2013 by TreeHouse Foods for $187 million. To his earlier days with FoodCor Corporation, where he successfully sold the company to Pepsi & 7Up in the late 80’s.



Csaba has been operating as an executive in the food & beverage (CPG) industry for 35 years. Having the experience of someone so capable of streamlining processes, reducing inefficiencies, and advancing lean manufacturing principles in the food & beverage Industry will be instrumental in driving TGOD to becoming a global leader in the growing Cannabis industry.



Mr. Bertrand’s experience in international expansion stimulated by the creation of subsidiaries and sales teams in Europe, Mexico, and Australia, as well as distributorships in other parts of the world will be invaluable in helping TGOD expand not just across Canada, but globally. By the time Marc sold his Company, MEGA Brands, to Mattel in 2014 for over $500 million, MEGA had over 1,700 employees, sales in over 100 international markets, and a presence in 15 countries. MEGA also built North America's largest toy factory with investments in high-speed equipment and automation. Sound familiar? All of these processes will play significant roles in our expansion. Further, coupled with Csaba Reider’s experience of delivering results on time and on budget, we are well positioned to capitalize on our 100-acre project moving forward, and well on our way to becoming one of the highest quality, lowest cost producers in the world.



Additionally, Marc has invaluable financial experience having actively participated in numerous complex financial transactions. These include a leveraged buyout, an initial public offering that raised $200 million, a $350 million strategic acquisition, a financial restructuring and an enterprise sale.



As we launch our phase one, 150,000 square foot expansion, and plan our 1,600,000 square foot total facility build out, we focus on putting a team in place that can execute, and drive our Company forward. A team that has done this before. This is exactly what makes Mr. Reider and Mr. Bertrand so valuable. This is a direct testament to management’s vision for the business, which is beginning to unfold as we start placing high level executives in senior management positions. We are thrilled to be able to attract this level of talent, at this stage of our Company’s lifecycle, in an industry where each and every day we are continually breaking down barriers. IPO Timing Update Our plan to complete a go-public transaction is on schedule for Q4 of this year.



We are continually adding interested investors to our wait list in the event fundraising opportunities arise. Please contact us directly at invest@tgod.ca if you or anyone you know is interested in investing in our future. License Update On April 20th, we submitted our application to Health Canada for our wholesale license and are currently awaiting a response.



We have several hundred thousand dollars worth of product in our vault. The demand for our organic product has been significant from many licensed producers eager to help supply an organic product line to their patients.



This B2B model is favorable for us, as we do not have patient acquisition costs, client service rep costs, shipping, fulfilment, and many other costs associated with selling retail. In addition, our time to market is dramatically reduced and we can begin generating revenues much quicker; and because of our high quality organic product, we’re able to command a significantly higher premium over non organic wholesale prices. TGOF Update We are proud to announce we have launched a separate but related private equity investment company called The Green Opportunity Funds (“TGOF”).



TGOF invests in global cannabis opportunities in the areas of cultivation, extraction, edibles & drinkables, branding and other ancillary businesses. To date, we have invested in, and are in late stage due diligence with a number of companies that are leaders in their respective markets.



TGOF is continually seeking investment opportunities. If you or anyone you know is looking for funding in the cannabis space, please reach out to us directly at info@tgof.ca. Events We are pleased to announce our Hamilton Cannabis Investor Summit was well received. We had close to 200 investors and shareholders attend the event at the Hamilton Golf & Country Club. Reviews have been favorable, and we are receiving lots of valuable input for our next event. We appreciate each and every one that came out, and are excited to announce more similar events as we gear up to launch our IPO later this year. Website Update We are pleased to announce that our new website is now live and can be viewed at www.tgod.ca. We have included our Investor Centre where visitors can find our corporate presentation, news releases and shareholder updates. In addition, we feature a patient portal that provides information on our upcoming beta program, TGOD's 36 different strains and more. We will continue to expand our website as we continue to grow. A note from Danny Brody, Vice President of Investor Relations As one of the leading cannabis companies in Canada, a Country that is undeniably leading the world in cannabis legalization, it is our duty to help create, educate, and share opportunities with you. It is for this reason we are looking to host more events, expand community initiatives, provide more shareholder communication and help educate investors and patients alike. We truly are a company managed and directed by shareholders; there are over 2,400 of us and it’s my goal to have the most up-to-date, detailed and transparent shareholder communication in the industry.



This forms part of our broader corporate mandate of community, transparency, and accountability which stems from the top down and ranges all the way from our carefully crafted organic cannabis growing principles, to our community initiatives, to our simple mission statement of making life better. It is my personal duty to fulfill this goal and we are always available if you ever have any thoughts, comments or concerns.



Best regards,

Danny



Danny Brody

Vice President, Investor Relations

Phone: 1 (905) 304-4201

Email: dbrody@tgod.ca ABOUT THE GREEN ORGANIC DUTCHMAN HOLDINGS LTD. The Green Organic Dutchman Holdings Ltd. produces Farm Grown, Pharma Grade Organic Cannabis.



The Company grows high quality, organically grown medical cannabis in small batches using craft growing, all natural principles. The Green Organic Dutchman Holdings Ltd. products are laboratory tested to ensure patients have access to a standardized, safe and consistent product.



The Green Organic Dutchman Holdings Ltd. has a potential capacity of 1,000KG's and a funded capacity of 14,000KG's. Situated on 100 acres of land, this gives The Green Organic Dutchman Holdings Ltd. one of the largest land packages in Canada. To date, the Company has raised $41.5 million dollars and has over 2,400 shareholders.



The Green Organic Dutchman Holdings Ltd. is licensed under the Access to Cannabis for Medical Purposes Regulations ("ACMPR") to cultivate medical cannabis. The Green Organic Dutchman Holdings Ltd. carries out its principal activities producing cannabis from its facilities in Ancaster, Ont., pursuant to the provisions of the ACMPR and the Controlled Drugs and Substances Act (Canada) and its regulations.