TORONTO, Oct. 9, 2019 /CNW/ - The Green Organic Dutchman Holdings Ltd. (the "Company" or "TGOD") (TSX:TGOD) (US:TGODF), a leading producer of premium certified organic cannabis, announces that it is reviewing financing alternatives in order to complete construction at its facilities in Ancaster, Ontario and Phase 1a at Valleyfield, Quebec. As previously disclosed, the Company had been engaged in discussions for ordinary course commercial bank facilities and equipment leasing. However, due to changing market conditions, those sources of financing have been unavailable on acceptable terms within the timeframes required, leading the Company to commence a review of additional alternatives. The Company currently has no debt and $56.7 million in cash available in Canada, including $40.2 million in restricted cash allocated to capital expenditures.

Construction at Ancaster is largely complete with all grow rooms licensed by Health Canada and approximately 6 weeks left before substantial completion of the processing facility. The evidence package for this final component is expected to be submitted to Health Canada by the end of November for licensing. The Company will prioritize any financing secured to accelerate commercial production in order to ramp-up revenues. TGOD already has supply agreements in place with Alberta, British Columbia and Ontario, and plans to distribute nationally as production increases in 2020. Portfolio development is underway for Cannabis 2.0 with first phase of product launches scheduled for December 2019, including organic teas and infusers.

The Company may revise the construction schedule for its Ancaster and Valleyfield projects if it is unable to obtain sufficient financing on reasonable terms, within the required timeframe. There can be no assurance that this review will result in the completion of any financing transaction.

Ancaster Highlights

Purpose-built facility designed specifically for premium organic cannabis cultivation and processing.

All grow rooms complete and licensed by Health Canada with total annual production capacity for the site at 17,500 kg; first harvest from greenhouse scheduled for Q4 2019.

Existing Health Canada licence for cultivation, sales, oil extraction and oil sales renewed until 2022

EU-GMP certification underway to enable exports to Europe .

. Large scale organic cultivation combined with premium pricing expected to generate strong margins.

Constructed to Leadership in Energy and Environmental Design (LEED) standards; certification expected upon completion.

Valleyfield Highlights

World's largest organic cannabis facility at 1,310,000 sq. ft. once completed; designed specifically for premium organic cannabis cultivation.

Phased approach with planned annual production capacity for phase 1a of 65,000 kg; first harvest scheduled by end of Q1 2020.

Total planned capacity of 185,000 kg once all phases are completed.

Access to North America's lowest power rates combined with automation will enable low-cost production.

lowest power rates combined with automation will enable low-cost production. Large scale cultivation of premium organic cannabis expected to generate industry-leading margins.

Constructed to Leadership in Energy and Environmental Design (LEED) standards; certification expected upon completion.

About The Green Organic Dutchman Holdings Ltd.

The Green Organic Dutchman Holdings Ltd. (TSX: TGOD) (US-OTC: TGODF) is a publicly traded, premium global organic cannabis company, with operations focused on medical cannabis markets in Canada, Europe, the Caribbean and Latin America, as well as the Canadian adult-use market. TGOD also has organic hemp CBD oil operations in Canada, and through its wholly owned subsidiary HemPoland distributes premium hemp CBD oil in the EU. The Company grows high quality, certified organic cannabis with sustainable, all-natural principles. TGOD's products are laboratory tested to ensure patients have access to a standardized, safe and consistent product. TGOD has a planned capacity of 219,000 kg and is building 1,643,000 sq. ft. of cultivation and processing facilities across Canada, Denmark and Jamaica.

TGOD's Common Shares and warrants issued under the indenture dated November 1, 2017 trade on the TSX under the symbol "TGOD" and "TGOD.WT", respectively.

For more information on The Green Organic Dutchman Holdings Ltd., please visit www.tgod.ca.

Forward-Looking Information Cautionary Statement

This news release includes statements containing certain "forward-looking information" within the meaning of applicable securities law ("forward-looking statements"). Forward looking statements in this release includes, but is not limited to, statements about construction and future production, statements about the potential to achieve positive EBITDA and level of gross margins, statements about timing of harvests, statement about the potential for financing facilities, statements about the completion of EU-GMP certification and LEED certification, statement about status of Health Canada licences, statement about the offering of any particular products by the Company in any jurisdiction and statements regarding the future performance of the Company. Forward-looking statements are frequently characterized by words such as "plan", "continue", "expect", "project", "intend", "should", "believe", "anticipate", "estimate", "may", "will", "potential", "proposed" and other similar words, or statements that certain events or conditions "may" or "will" occur. These statements are only predictions. Various assumptions were used in drawing the conclusions or making the projections contained in the forward-looking statements throughout this news release. Forward-looking statements are based on the opinions and estimates of management at the date the statements are made and are subject to a variety of risks and uncertainties (including market conditions) and other factors that could cause actual events or results to differ materially from those projected in the forward-looking statements, including those risk factors described in the Company's most recently filed Annual Information Form available on SEDAR. The Company is under no obligation, and expressly disclaims any intention or obligation, to update or revise any forward-looking statements, whether as a result of new information, future events or otherwise, except as expressly required by applicable law.

Neither the TSX nor the TSX's Regulation Services Provider (as that term is defined in the policies of Toronto Stock Exchange) accept responsibility for the adequacy or accuracy of this release.

SOURCE The Green Organic Dutchman Holdings Ltd.

For further information: Media Relations: Sebastien Bouchard, [email protected], (647) 272-2476; Investor Relations: Shane Dungey, [email protected], (403) 389-9911