Ontario-based The Green Organic Dutchman Holdings Ltd. (TSX:TGOD; US:TGODF) is entering the U.S. through a strategic investment in a new CBD beverage company.
Under the terms of the investment, The Green Organic Dutchman (TGOD) will serve as co-founder and strategic partner for new entity Califormulations LLC. In addition to assisting other companies in developing formulas and producing product at scale, Califormulations will work to release hemp-based CBD beverages from TGOD in the U.S.
The beverage company will operate in Columbus, Georgia and is also being co-founded through an investment and additional beverage expertise from Symrise Inc.
The end goal of the partnership is CBD drinks hitting store shelves in U.S. states, but that milestone remains in the future as the new company gets up and running. While operations ramp up and local infused beverage laws are navigated, Califormulations will initially produce beverage concentrates to send to Canadian and international TGOD sites to be infused with cannabinoids.
The Green Organic Dutchman’s Chief Executive Officer Brian Athaide commented on the new investment into CBD drinks:
CBD products have seen a huge boom in the U.S. in recent months, with everything from tinctures and gummies to beauty products and drops for pets landing on shelves in wellness shops, pharmacy chains, and even convenience stores.
Hemp production and CBD product sales were effectively legalized nationwide in the U.S. last year with the 2018 Farm Bill, although a handful of states are still passing their own laws to formalize legalization or set their own restrictions.
In addition to preparing to enter the U.S. functional beverage market, The Green Organic Dutchman just announced that the company’s Q1 2019 earnings report will be released after close of market on May 14. An investor conference call with CEO Brian Athaide and CFO Sean Bovingdon will be held the next morning.