Established Licensed Cultivator and Producer in Nevada’s Emerging Medical and Recreational Cannabis Markets
This 1933 Industries Inc. profile is part of a paid investor education campaign.*
1933 Industries Inc. (CSE:TGIF,OTCQX:TGIFF) is a leading cannabis consumer packaged goods (CPG) company with licensed cultivation and manufacturing assets to support its brands based in Las Vegas, Nevada. The company has built a vertically-integrated business model serving multiple facets across the value chain of the medical, recreational and CPG wellness cannabis markets in North America. Nevada voted to legalize recreational cannabis in 2016, and adult-use cannabis was implemented in July 2017. The legislation has proven to be a huge opportunity for the state’s largest city, Las Vegas—one of North America’s premier tourist destinations.
1933 Industries operates two Las Vegas-based subsidiaries — established licensed cultivator and producer Alternate Medicine Association LC (AMA) and Infused Mfg LLC (Infused). AMA cultivates cannabis flower and produces extracts for its own line of hand-crafted AMA-branded concentrates as well as white label production for Denver Dab Co., OG DNA Genetics, The Real Kurupt’s Moon Rocks, Gotti’s Gold, BlondeTM, The Original Jack Herer and PLUGplay.
Infused manufactures Canna Hemp™, a proprietary, agricultural hemp-based, CBD infused line of wellness products. AMA is the largest wholesaler in Nevada, with shelf space in every licensed dispensary in the state and Infused’s Canna Hemp™ portfolio has widespread distribution across over 800 retail outlets in the US.
AMA has been at the forefront of the Las Vegas cannabis market since the beginning, working closely with the state of Nevada to set standards for cultivation. The company was the first cannabis cultivator and producer to be licensed in Clark Country following the 2013 Nevada Legislature’s approval of the cultivation and sale of medical cannabis.
Infused offers 1933 Industries a crucial edge with a mature line of CBD-infused products that are legal nationwide. The high-margin CBD products market is one of the fastest-growing sectors in the medical cannabis industry and is expected to reach $2.1 billion by 2020, according to the Hemp Business Journal.
1933 Industries has recently set its sights on entering California’s cannabis market. To this aim, the company has signed a management services agreement with Green Spectrum Trading Inc., a medicinal and recreational cannabis business licensee in California. 1933 Industries intends to help Green Spectrum build out its operations in Nevada. In exchange, Green Spectrum is expected to introduce 1933 Industries’ products and brands into the California market.
1933 Industries is managed by an experienced team of cannabis industry and public market professionals.
1933 Industries’ Company Highlights
- High growth cannabis company with proprietary THC and CBD consumer brands.
- Established AMA THC products with significant market share in Nevada.
- Mature and nationally-recognized Canna Hemp™ CBD wellness line distributed from coast to coast in the US across 46 states.
- Owns cultivation, extraction and manufacturing infrastructure assets in Nevada.
- Quarter-over-quarter growing revenues and profit margins.
- Aggressive growth strategy in the US, Canada and abroad.
- Expansion initiatives underway for scaled-up cultivation, production and CBD extraction to support its brands.
- Exclusive product licensing agreements with top industry names such as Denver Dab Co, OG DNA Genetics, Birdhouse Skateboards™, BlondeTM, The Original Jack Herer, PLUGplay and Gotti’s Gold.
- Experienced, culturally-entrenched management team with cannabis and capital markets expertise.
- Ground floor opportunity for investors in the emerging US-based cannabis market.
Alternative Medicine Association—The Las Vegas Original
High demand strains with high THC percentages with exceptional, potent and consistent buds
AMA has the proven ability to continually produce potent and consistent cannabis flowers. The company’s cultivation team has perfected a proprietary curing and storing process that includes controlling the flower’s environment from seed-to-sale in order to retain the exceptional quality of each strain. AMA has completed construction of a new, purpose-built, state-of-the-art 67,750-square-foot cultivation facility which is expected to produce approximately 800 pounds of flower per month to support AMA and its white labels brands.
High Demand, Superior Products
AMA’s products are sold in licensed dispensaries in Nevada. The company’s products include concentrates in many forms such as shatter, sugar, cake batter, crumble and THC oils. The company’s vape pen is sold with premium distillate oil. AMA also has a number of flower strains.
1933 Industries’ Licensing Agreements and Strategic Alliances
AMA signed an exclusive licensing agreement with OG DNA Genetics Inc. to cultivate, manufacture, sell and distribute co-branded cannabis products in Nevada for two years. DNA Genetics has developed expertise in the R&D of cannabis genetics and intends to provide AMA with the expertise needed to develop a consistent phenotype strain for the cultivation of high-quality flower. The co-branded flower and pre-rolls are expected to be certified by DNA Genetics to ensure that the company’s high-certification standards are met.
AMA is expected to provide the cultivation space for the licensed products as well as distribution in Nevada. AMA also plans to provide turn-key marketing and promotional services throughout the term of the agreement.
Gotti Gold Licensing Agreement
AMA signed an exclusive licensing agreement with hip-hop artist Kurupt and Gotti’s Gold EX LLC for the production of the Gotti’s Gold line in Nevada. Gotti’s Gold is an exclusive premium collection of cannabis products that are designed to appeal to all demographics.
The new line of Gotti’s Gold is expected to include premium flower, pre-rolls, THC cartridges, gold nuggets, CBD cartridges and a branded line of concentrates. The products are expected to be distributed through 1933 Industries’ distribution network in Nevada.
Denver Dab Licensing Agreement
In addition to Infused’s licensing agreement with the Denver Dab Company (DDC), AMA has also signed a licensing agreement with DDC. Under the terms of the agreement, AMA has the exclusive rights to produce, manufacture, market and sell DDC’s licensed products in Nevada for a period of 12 months with an option to extend the terms for an additional 12 months. The products include live and cured resin, live budder, live and cured diamonds and live and cured sauce.
In order to enter California’s cannabis market and expand AMA’s presence outside of Nevada, 1933 Industries has signed a two-year management services agreement with Green Spectrum, a medicinal and recreational cannabis business licensee in California. Green Spectrum is a licensed cannabis cultivator, manufacturer and distributor with a pending home delivery business license.
Under the terms of the agreement, 1933 Industries plans to provide oversight over the general management of Green Spectrum and its operations including product manufacturing, distribution efforts, staffing, sales, marketing, accounting and compliance. The company intends to utilize its expertise in manufacturing and building distribution networks to establish a new cannabis manufacturing and extraction facility for Green Spectrum. 1933 Industries has also granted Green Spectrum a non-exclusive license to use its licensed trademarks to produce, manufacture, market and sell the company’s licensed products in California.
BlondeTM Licensing Agreement
AMA has obtained the exclusive rights for one year to cultivate flower, manufacture pre-rolls, live resin vape pens and cartridges under the BlondeTM brand for distribution in Nevada. BlondeTM is a high-end California brand making its debut in Nevada.
Jack Herer Licensing Agreement
For a one-year term, AMA has obtained the intellectual property rights to The Original Jack Herer brand of cannabis products. AMA is expected to license, market and distribute The Original Jack Herer flower, pre-rolls, vape cartridges and concentrated in the Nevada market.
PLUGplay Licensing Agreement
1933 Industries has also signed a 12-month licensing agreement with PLUGplay, a California-based manufacturer of cannabis vaporizer cartridges with proprietary magnetic hardware. PLUGplay’s premium distillate oil cartridges feature sleek, high-quality magnetic pods and have long-lasting batteries. Under the terms of the agreement, AMA is expected to manufacture distillate and vape pens under the PLUGplay brand for distribution in Nevada.
AMA’s Cultivation and Production Facilities
1933 Industries has increased the square footage of AMA’s cultivation and extraction efforts by constructing a 67,750-square-foot cannabis cultivation facility in Las Vegas, Nevada. After completing construction on the cultivation facility, 1933 Industries sold it for US$10.45 million. The sales agreement has a 10-year lease-back agreement with the option to extend the lease term for up to 10 years, ensuring a long-term cultivation location for the company.
“We are pleased to complete the sale transaction and leverage our real estate asset to support our growth,” said 1933 Industries Chairman of the Board Brayden Sutton. “We funded the purchase of the land and construction of the facility without incurring any debt, so the full sale proceeds are available for working capital and to fund acquisitions in key cannabis markets. Our diligent adherence to efficient capital allocation and sound operational practices has led us to maintain a strong financial position which will propel us into our next growth stage.”
AMA plans to convert the original 12,000-square-foot cultivation building into an extraction and production facility to supply its concentrate brand and licensing agreements.
1933 Industries also has a 12,160-square-foot production and hemp biomass processing facility that will develop products for Infused’s product lines. The company is building out the hemp extraction facility to produce full-spectrum and broad-spectrum oils and isolates. The increased capacity at the facility will increase its production throughput up to 68,000 kilograms of hemp biomass. This is expected to produce approximately 5,000 kilograms of full-spectrum oils or 4,500 kilograms of CBD isolate.
AMA received approval to commence operations at the new facility in July 2019 and has transferred its cannabis plants to the new facility. The new facility is able to cultivate five times the amount of cannabis flower than previously produced, allowing the company to meet the demand for premium cannabis products.
The facility is also expected to house 1933 Industries’ partner OG DNA Genetics, a globally recognized leader in R&D of cannabis genetics.
Infused Mfg—High-Quality CBD-infused Products
Infused develops and manufactures its own proprietary CBD-infused Canna Hemp™ wellness line of products. At its facility in Las Vegas, the company uses proprietary formulas to combine high quality, organic cannabinoids for specific effects. These hemp-based products do not contain any THC. The Canna Hemp™ line of products bridge the gap between health care professionals and patients seeking alternative healing.
Entering the Colorado market for the first time, Infused signed a licensing agreement with DDC, a producer of high-quality concentrates and pure cannabis oils for the medical and recreational markets across Colorado. DDC produces Canna Hemp™ branded products for the Colorado market including CBD Relief Cream, body lotions, lip balms, disposable vape pens, vape cartridges, elixirs and capsules as well as Canna Hemp™ Paws pet products, a line of CBD oils that deliver therapeutic benefits without intoxication.
Infused commenced sales in Colorado and launched a new cannabis brand, Canna Fused™, in October 2018. The Canna Fused™ brand is focused on providing medical relief for a number of ailments and conditions. The brand officially launched in April 2019 in Nevada.
Colorado is the most mature legalized cannabis market in the US and is the second-largest cannabis market in the country next to California. Since the state legalized industrial hemp production for commercial purposes in 2012, Colorado now accounts for more than half of the hemp production in the US.
Infused also launched a variety of new products in partnership with well-known names in the action sports world. The company entered the action sports vertical with a new line, Canna Hemp X™, in collaboration with professional athlete Torey Pudwill, founder of Grizzly Griptape Company. The company has also recently signed pro MMA fighter Sarah Moras as a brand ambassador, targeting mixed martial arts and extreme sports with its recovery and endurance elixirs and recovery cream under the Canna Hemp X™ brand.
Infused has also commenced sales of the Canna Hemp X™ brand with specialty retailer Zumiez (NASDAQ:ZUMZ). With 658 stores in North America, Zumiez has a well-defined brand position with a target audience that could be receptive to the Canna Hemp X™ brand.
Birdhouse Skateboards™ Licensing Agreement
Infused signed a licensing agreement with Hawk LLC for the launch of several co-branded CBD wellness products in North America over a two-year period. Birdhouse Skateboards™ is a skateboard company co-founded in 1992 by Tony Hawk and is a subsidiary of Hawk LLC. Birdhouse Skateboards manufactures skateboards, decks and wheels for all skill levels as well as clothing and accessories for the skateboard community.
Under the terms of the agreement, Infused intends to launch several co-branded products, including CBD and hemp-only recovery creams and lotions. The products will be sold under the Canna Hemp, Canna Hemp X and Birdhouse Skateboards™ names.
CDB-Infused Topicals, Tinctures and Capsules
Canna Hemp™ offers a wide range of high-quality CBD-infused, hemp-based products that include body lotions, pain relief creams, dabs, vape pens and elixirs, infused with the company’s exclusive TerpFX, a proprietary blend of terpenes used to create diverse aromas and flavors.
1933 Industries’ Management Team
Chris Rebentisch – CEO and Director of the Board
Chris Rebentisch founded Infused Mfg. after personally developing and crafting each product with the belief in the natural healing properties of cannabis. He is a seasoned cultivator and advocate for the industry in Nevada.
Ester Vigil – President
Ester Vigil spent over 17 years in the cosmetics industry before switching her focus to medical cannabis. As President, she has oversight of sales and marketing with the aim of establishing 1933 Industries’ wellness products as the premier cannabis and CBD brands in the marketplace.
Caleb Zobrist, Esq. – Executive VP and General Counsel
Caleb Zobrist has been a licensed Nevada attorney since 2009. He has handled numerous transactions, including M&A for public and private companies. He has represented cannabis companies in Nevada since the state’s launch of its legal medical cannabis program in 2014.
Steve Radusch – CFO
Steve Radusch is a seasoned accounting and finance specialist with over 25 years of experience in financial operations, cash management, corporate restructuring, debt and equity financings, M&A and public company reporting.
Natalie Rider – Director of Finance
Natalie Rider is an accounting executive with over 25 years of experience in a number of fields, gaining a wealth of applicable expertise including budgeting, operations, system design, database management and financial management.
Josh Taylor – Director of Business Development
Josh Taylor is a successful entrepreneur in the legal cannabis space with several years of experience in business development in the consumer-packaged goods industry. His role is to establish further networks for 1933 Industries’ branded suite of products, opening new markets for expansion in North America.
Alexia Helgason – Director of Investor Relations
Alexia Helgason is a marketing, corporate communications and investor relations professional with over 24 years’ experience in corporate environments, working with a number of publicly listed issuers, in a variety of business sectors.
LJ Robinson – Director of Infrastructure
LJ Robinson oversees all aspects of the company’s operations in the US and bring over 10 years of experience in the cannabis industry as a grower. He is responsible for the company’s infrastructure development, overseeing all expansion activities and construction projects. Prior to entering the cannabis industry, he spent 10 years in computer programming.
Brayden R. Sutton — Chairman of the Board
Brayden Sutton has been involved in the legal cannabis sector since 2012, where he held various executive positions with both public and private companies at the leading edge of the emerging cannabis industry.
Brian Farrell, CA – Director
Brian Farrell is a partner with a public accountancy firm, focusing on taxation and accounting and has served as CFO and director to both privately held and publicly listed companies.
Richard Skeith, BA/JD — Director
Rick Skeith is a partner with a large international law firm and has degrees in economics and law from the University of Alberta.
Terry Taouss, JD— Director
Terry Taouss is an entrepreneur with operational experience scaling fast-growing businesses and has held executive positions in both public and private companies. He has practiced corporate law in Canada for several years and is a member of the Law Society of Ontario.
Cameron Watt – Director
Cameron Watt combines over 30 years of successful business negotiation and leadership experience in various industries with a talent for developing, launching and managing businesses.
*Disclaimer:This profile is sponsored by 1933 Industries Inc. (CSE:TGIF, FWB:1QF, OTCQX:TGIFF). This profile provides information which was sourced by the Investing News Network (INN) and approved by 1933 Industries Inc., in order to help investors learn more about the company. 1933 Industries Inc. is a client of INN. The company’s campaign fees pay for INN to create and update this profile.
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