With Canadian licensed producers rushing to grow more product to meet unprecedented cannabis demand, working with local governments has become a critical but frequently overlooked aspect of company expansion.
The Green Organic Dutchman Holdings Ltd. (TSX: TGOD; US OTMCKTS: TGODF) just scored a win on that front, with the Hamilton city council voting unanimously to approve a settlement that allows the company to move forward with construction plans.
Uncertainty over the 123,000 sq. ft. greenhouse project in Ancaster began when The Green Organic Dutchman previously filed for an exemption to the bylaw limiting facilities in the location to a maximum of 20,000 sq. ft. of operational space.
That proposal was initially rejected, leading to the settlement offer and a closed-door session of city council to debate the issue. Confirmation of the settlement is expected in a late April meeting of the Local Planning Appeal Tribunal.
Prior to the closed-door session and subsequent vote, city councillors had raised concerns about potential unintended consequences of allowing licensed producers to construct large-scale cannabis cultivation facilities in rural areas.
The Green Organic Dutchman’s Chief Executive Officer and Director Brian Athaide issued this brief statement about the development:
Athaide further stated the facility will employ an estimated 85 community members and is seeking to produce more than 17,000 kg of cannabis per year once it is fully up and running. Construction on the site continued during the time the exemption and settlement were under consideration, with grow operations expected to commence this coming June.
The Green Organic Dutchman is seeking to increase its overall product output after the company officially began selling medical marijuana to patients in the Growers Circle earlier this week.
A first batch of organic cannabis was made available to about 200 patients in the Growers Circle and the company is looking to drastically increase that number by leveraging grow operations in both Canada and abroad.