The Green Organic Dutchman has entered into a definitive Agreement with Queen Genetics/Knud Jepsen to establish two 50/50 joint ventures; the first for the purpose of producing commercial cannabis and cannabis oils and the second for developing and patenting innovative and commercially valuable elite cannabis genetics. The parties will form both joint ventures in Denmark with a goal to expand the Production JV into future low-cost European jurisdictions.
The Definitive Agreement outlines TGOD and Knud Jepsen's launch of a premium organic European bulk cannabinoid production platform where TGOD will have the exclusive right to all cannabis-related production from the JV, through a guaranteed offtake agreement at a pre-determined price relative to the production cost of the JV. Further, the Production JV will have exclusive access to all intellectual property including elite cannabis genetics developed within the Genetics JV. Knud Jepsen will be responsible for the day-to-day operations of the JV and TGOD will leverage Knud Jepsen's years of horticulture experience and science and R&D division to accelerate commercial operations in Denmark and throughout Europe.
TGOD's differentiated approach to organic cannabinoid production combined with Knud Jepsen's large-scale commercial horticultural and globally integrated seed-to-sale operations will accelerate TGOD's global initiatives. The European bulk cannabinoid production platform paired with the Genetics JV will generate value-added formulations and products for established European and international sales and distribution channels.
The first phase of the JV will consist of a Hinnerup, Denmark based 2,500 kg pilot program with the previously contemplated (See June 27, 2018 news release) 25,000 kgs of production in Denmark, shifting to various lower cost production jurisdictions throughout Europe.
"This JV is incredibly important to furthering TGOD's presence in Europe," commented Brian Athaide, Director and CEO of TGOD. "Knud Jepsen is a remarkable partner, having over 80 years of experience in R&D and cultivating plants in millions of square feet. As we roll out multiple phases of our JV and plan to increase the partnership to multiple countries across Europe, leveraging Knud Jepsen's expertise as operators, and our expertise in cannabis will be critical to TGOD's expansion throughout the continent. The partnership will allow TGOD to focus on building global sales and distribution channels, developing proprietary and patentable IP, and furthering brand equity," continued Athaide.
"We are thrilled to partner with TGOD and officially enter the cannabis market with the signing of this definitive agreement," commented Frands Jepsen, Knud Jepsen's CEO. "2,500 kgs in Denmark is just the beginning, we will shift the proposed 25,000 kgs to strategic European locations with low-cost production and expect to far exceed that capacity as we onboard additional production sites. We will leverage our global business, dedicated staff, and 80 years of operating and R&D experience to become, with TGOD, the largest European producer of organic cannabis."