1933 Industries Harvests First Commercial Cannabis Crop in California, Expands Canna Hemp™ Distribution and Provides Market Update
1933 Industries Inc. is pleased to announce that the first harvest of cannabis plants from its California operation is currently under way.
1933 Industries Inc. (the “Company” or “1933 Industries”) (CSE:TGIF, OTCQX:TGIFF), a vertically-integrated and growth-orientated cannabis consumer packaged goods company, is pleased to announce that, further to its news release dated January 7th, 2020, the first harvest of cannabis plants from its California operation is currently under way and reports that it has commenced distribution of California-compliant full spectrum Canna Hemp™ products to dispensaries in the state.
First commercial harvest marks the California debut of AMA and Blonde™ Cannabis products
Following the completion of a combined 20,000 sq. ft. expanded cultivation, extraction, manufacturing and distribution facility in the Los Angeles area, the Company began harvesting its first cannabis crop this week to be utilized for both its proprietary brand, Alternative Medicine Association (AMA) as well as for its licensing partner, luxury brand Blonde™ Cannabis, with products earmarked for dispensaries for the first time outside of Nevada. With crops of Mimosa and SFV OG, the harvest will be utilized for AMA premium packaged flower, pre-rolls and Blonde™ products. Over a period of approximately three weeks, harvested plants will enter a drying and curing process and laboratory testing with product expected to be available in early March.
Full spectrum Canna Hemp™ CBD products entering the competitive California market
The Company established local manufacturing for its proprietary cannabidiol (CBD) wellness line containing California-compliant full spectrum CBD for direct distribution to local dispensaries. The Company reports that the initial run of 30,000 units of full spectrum CBD Canna Hemp™ products passed required state compliance testing and will be delivered to dispensaries this week. Initial products available include, Canna Hemp™ elixirs, vape pens and cartridges, and Canna Hemp X™ elixirs, with Canna Hemp™ Relief creams available later in February.
Market Update and Management Commentary by Mr. Chris Rebentisch, CEO
While the landscape of the entire cannabis sector has changed dramatically and continues to be under pressure, we would like to reassure our investors that the current share price does not reflect our business operations as we continue to execute our strategy. With two capital projects now completed, we are on track to deliver two key infrastructure projects over the next several months that will allow us to fully control our input materials, lower our costs of production, increase our revenues and margins with profitability as our key priority in fiscal 2021 and beyond. We are continuing to achieve further efficiencies across our operations, managing our cash position conservatively and controlling expenses to endure current market conditions.
Nevada cultivation, tetrahydrocannabinol (THC) extraction expansion and GMP hemp extraction lab updates
We are on schedule to harvest commercial crops every 14-18 days from the Las Vegas cultivation facility starting in March. We have 5 harvest zones with plants growing in various stages for 4 of the 5 zones. We are pleased to report that the biomass from the first harvest from this facility has been utilized to produce our line of high value concentrates for the Nevada market and leverage one of most exciting verticals within the cannabis industry.
On January 27th, we submitted a third round of comments to the Clark County Building Department (CCBD) for the expansion of our THC extraction facility. A construction schedule will be forthcoming once the building permit is awarded. In the meantime, we have prepared work for electrical upgrades to the facility.
Although the peer review of the customized extraction equipment for the GMP hemp extraction lab has not been completed to date, we are still on track to deliver this project mid-year. We continue to make progress in building design and equipment engineering. We report that the distillation system has been delivered to the facility in Las Vegas. All milestones will be reported until the final completion of this project.
Our focus continues to be the strengthening of our existing operations in Nevada with increased production capacity, the growth of our California operations and the generation of new revenue from that market, and the advancement of our capital initiatives while capitalizing on the sale of our line of CBD Canna Hemp™ products across the attractive US cannabis markets. A revamped E-commerce website for Canna Hemp™ will be launched this Friday with a direct to consumer strategy. Our Company’s mission is to provide safe products that focus on the benefits of the plant and that are in line with consumer demands, offering quality of ingredients and consistency at affordable prices.
About 1933 Industries Inc.
1933 Industries is a vertically-integrated, growth-orientated company, focusing on the cultivation and manufacturing of cannabis consumer branded goods in a wide range of product formats. Operating through two subsidiaries, the Company controls all aspects of the value chain with cultivation, extraction, processing, and manufacturing assets supporting its diversified portfolio of cannabis brands and licensing partners.
Our award-winning proprietary portfolio of brands include: AMA flower and AMA concentrates as well as CBD-infused Canna Hemp™, Canna Hemp X™, and Canna Fused™ products. Partners under licensing agreements include: Birdhouse Skateboards™, Blonde™ Cannabis, Bloom™, Denver Dab Co., Grizzly Griptape, OG DNA Genetics, The Pantry Company, PLUGplay, and The Original Jack Herer®.
The Company owns 91% of Alternative Medicine Association, LC (AMA), and 100% of Infused MFG LLC. 1933 Industries continues to focus its operations in the licensed US cannabis industry as a multi-state operator in Nevada, Colorado and California. The Company operates in California via a management services agreement with Green Spectrum Trading Inc., a medicinal and recreational cannabis business licensee in the state.
About Canna Hemp™
Canna Hemp™ CBD Relief Cream was named “Best Topical” by Leafy’s Best in State: The Top State Specific Products and Experiences of 2018.
About Canna HempX™
Canna Hemp X™ was named “Best Topicals for Pain” by Herb’s Guide to the Best Cannabis Products on the Planet. Canna Hemp X™ is a CBD sports recovery cream for athletes, bridging the gap between recovery and top performance.
Neither the Canadian Securities Exchange nor its Regulation Services Provider (as that term is defined in the policies of the Canadian Securities Exchange) accepts responsibility for the adequacy or accuracy of this release.
Notice regarding Forward Looking Statements: This news release contains forward-looking statements. The use of any of the words “anticipate”, “continue”, “estimate”, “expect”, “may”, “will”, “project”, “should”, “believe” and similar expressions are intended to identify forward-looking statements. Although the Company believes that the expectations and assumptions on which the forward-looking statements are based are reasonable, undue reliance should not be placed on the forward-looking statements because the Company can give no assurance that they will prove to be correct. Since forward-looking statements address future events and conditions, by their very nature they involve inherent risks and uncertainties. These statements speak only as of the date of this news release. Actual results could differ materially from those currently anticipated due to a number of factors and risks including various risk factors discussed in the Company’s disclosure documents, which can be found under the Company’s profile on www.sedar.com. 1933 Industries undertakes no obligation to update publicly or revise any forward-looking information, whether as a result of new information, future events or otherwise, except as required by law.