Repeat that number again ! $200 million loss.
MJ Biz report
Canadian cannabis company The Green Organic Dutchman Holdings (TGOD) entered into an agreement to sell its greenhouse in Salaberry-de-Valleyfield, Quebec, for substantially less than the project’s total cost.
The Mississauga, Ontario-headquartered company has agreed to sell the greenhouse for 27 million Canadian dollars ($22.2 million) to another cannabis producer, Cannara Biotech, the companies jointly announced.
TGOD had spent CA$239 million on the property as of last summer, according to a regulatory filing, meaning the company will have lost more than CA$200 million on the facility when the deal is completed later this month.
The company says it plans to use the proceeds of the sale to eliminate its senior term debt.
The pending sale is the latest example of the broad selloff of mass-scale cannabis greenhouses by the largest Canadian producers, which wildly overspent on cultivation space from 2017 to 2019.
One cannabis executive previously characterized the rush to establish those large facilities as an “arms race.”