The Tinley Beverage Company Inc. (CSE: TNY) (OTCQB: TNYBF) ("Tinley's" or the "Company") is pleased to provide a corporate update on various initiatives now underway and intended to advance the Company's business and create sustainable shareholder value.
Update on Relocation to Canoga Park
The Company previously announced that it expected to complete its relocation from its Long Beach Facility to the Blaze Life Holdings' ("BLH") facility in Canoga Park, California at the end of Q2 or beginning of Q3 of 2023, but confirms that it now expects the relocation to be completed closer to the end of Q3 or the beginning of Q4. The updated timeframe is primarily a result of delays relating to BLH's receipt of certain municipal licenses and approvals which it requires to operate its state-of-the-art cannabis processing, bottling, canning, and storage/distribution facility in Canoga Park, California (the "BLH Facility"). Final interior renovations and capital improvements to the BLH Facility required to satisfy the municipal licencing inspections and approvals are now underway in order to allow the BLH Facility to become fully operational. The completion of Tinley's relocation to the BLH Facility is expected to coincide with BLH's receipt of such outstanding municipal licenses and approvals.
As previously announced, once Tinley's bottling operations are moved from Long Beach to the BLH Facility, management expects the Company to save approximately USD$1 million annually in overhead operating expenses. Based on these anticipated costs and overhead savings, along with management's revenue targets for cannabis-infused and non-infused products over the next 18-24 months, management now expects that the Company may be in a position to earn positive cash flow by or during the second half of 2024. However, there are many factors that could impact these expectations, including, but not limited to, achieving management's revenue projections and unknown and unexpected future Company expenses.
Update on Current Operations at Long Beach Facility and Lease Extension
Pursuant to the terms of Tinley's existing lease for its the Long Beach Facility, Tinley's was required to vacate the premises by May 31, 2023; however, the Company was able to negotiate a lease extension at a substantially discounted rent in order to allow it to continue to use premises at the Long Beach Facility until July 15, 2023. As at the date of this news release, Tinley's continues to operate its bottling and canning lines at the Long Beach Facility, servicing both Tinley's ongoing clients and new BLH co-packing clients and intends to work with the landlord of the Long Beach Facility to further extend its lease so that it may continue to service its and BLH's clients until such time as it can complete its relocation to the BLH Facility. Additional details relating to the status of the Company's lease of its Long Beach Facility will be announced when more information is available.
Beckett's Non-Infused/Non-Alcoholic Beverages
The sober-curious no-alcohol beverage market in the United States continues to grow. No-alcohol ready-to-drink single serve beverages and no-alcohol multi-serve spirits are both expected to post substantial volume growth, according to credible industry research estimates. The Company continues to be on the cutting edge of this new and growing market segment with its premium-tasting non-infused Beckett's line of non-alcoholic ready-to-drink mocktails and non-alcoholic multi-serve spirits and liqueurs. Tinley's is currently staging ingredients and packaging materials for Q3 2023 production to satisfy new Total Wine & More purchase orders and to build its inventory to more easily satisfy future purchase orders from Total Wine & More and to build on-demand stock for other retail and on-premises customers.
Introducing Beckett's-branded Cannabis-Infused Beverages
Following the move to Canoga Park, Tinley's plans to re-launch its line of cannabis-infused beverages under the brand names Beckett's Tonics and Beckett's '27. This rebrand will include current micro-dosed cannabis-infused beverage products, as well as new higher-potency products and new container formats targeted at higher-dose seeking consumers while maintaining current micro-dose products for the direct-to-consumer home delivery channel. Management believes that the goodwill the Company has built in the Beckett's brand will help its cannabis-infused products gain new momentum in the growing cannabis beverage market in California. "We are a completely different Company today than we were under the previous management team, and it's time to re-brand under one name to position us as market leaders in cannabis-infused and non-infused beverage sectors. We have a great partner in BLH and its state-wide distribution division, Sulo. It's time to show a fresh face and blow wind into Sulo's sails with a strategic relaunch, while leaving the anchors of the past behind," said Tinley's CEO, Teddy Zittell. "We will seek shareholder approval to pass a special resolution changing the Company's name to Beckett's at the Company's next AGM, which we expect to call and hold before year-end."
Update on Executive Salary Deferral
Previously, Tinley's announced that due to cash restrictions and other financial restraints, both the CEO and CFO agreed to defer their salary until such time as the Company was in a position to pay its executive salaries. Tinley is pleased to announce that as a result of considerable costs savings, along with solid co-packing revenues and revenue from the sale of Beckett's non-infused products, the Company is now in a position where it has been able to pay salary to its CFO. The Company's CEO, Teddy Zittell, is continuing to defer his salary for the time being.
Grant of Stock Options
Tinley's also announces the grant of stock options to purchase up to 9,000,000 common shares in the capital of the Company to certain directors, officers and consultants of the Company in accordance with the terms of the Company's stock option plan. The stock options will be exercisable at a price of $0.05 per common share for a period of ten years from the date of grant.
Forward-Looking Statements
This news release contains forward-looking statements and information (collectively, "forward-looking statements") within the meaning of applicable Canadian securities laws. Forward-looking statements are statements and information that are not historical facts but instead include financial projections and estimates, statements regarding plans, goals, objectives and intentions, statements regarding the Company's expectations with respect to its future business and operations, management's expectations regarding growth and phrases containing words such as "ongoing", "estimates", "expects", "anticipates", or the negative thereof or any other variations thereon or comparable terminology referring to future events or results, or that events or conditions "will", "may", "could", or "should" occur or be achieved, or comparable terminology referring to future events or results. Factors that could cause actual results to differ materially from any forward-looking statement include, but are not limited to, the timing of BLH's receipt of certain licenses and approvals necessary to operate at the BLH Facility, the timing of the BLH Facility becoming fully operational, potential delays or unanticipated problems related to the relocation of Tinley's bottling assets to the BLH Facility, risks associated with Tinley's existing bottling customers continuing production at the BLH Facility and Tinley's existing can customers agreeing to move their production to the BLH Facility, Tinley's being sufficiently capitalized to meet its financial obligations related to the move to BLH Facility, potential delays in obtaining, or failures to obtain, necessary governmental approvals required to operate the BLH Facility, risks underlying management's expectations relating to the proposed benefits of relocating to the BLH Facility, political risks, uncertainties relating to the availability, and costs, of financing needed in the future, changes in equity markets, inflation, changes in exchange rates, fluctuations in input costs, changes in consumer tastes and preferences, and the ability of BLH and the Company to achieve certain expected synergies as a result of the entering into of their management services agreement Forward-looking statements are subject to significant risks and uncertainties, and other factors that could cause actual results to differ materially from expected results. Readers should not place undue reliance on forward-looking statements. These forward-looking statements are made as of the date hereof and the Company assumes no responsibility to update them or revise them to reflect new events or circumstances other than as required by law. Products, formulations, and timelines outlined herein are subject to change at any time.
For further information, please contact:
The Tinley Beverage Company Inc.
Teddy Zittell
(310) 507-9146
relations@drinktinley.comCSE: TNY; OTCQB: TNYBF
Twitter: @drinktinleys and @drinkbecketts
Instagram: @drinktinleys and @drinkbecketts
www.drinktinley.com
To view the source version of this press release, please visit https://www.newsfilecorp.com/release/169950
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The Tinley Beverage Company Inc. (CSE: TNY) (OTCQB: TNYBF) (the "Company") announced today that it will be filing its annual financial statements, management's discussion and analysis and related officer certifications for the financial year ended December 31, 2022 (collectively, the "Annual Filings") beyond the required filing deadline under Parts 4 and 5 of National Instrument 51-102 Continuous Disclosure Obligations and pursuant to National Instrument 52-109 Certification of Disclosure in Issuer's Annual and Interim Filings and is now subject to a cease trade order dated May 5, 2023 (the "CTO"). In order to remove the CTO, among other things, the Company will need to complete the audit and file the Annual Filings on SEDAR.
The Corporation is working closely with its auditor and expects to file the Annual Filings as soon as possible. The Corporation does not anticipate any delay in filing its interim financial statements, management's discussion and analysis, and the related officer certifications for the financial period ended March 31, 2023.
About The Tinley's Beverage Company
The Tinley's Beverage Company Inc. (CSE: TNY) (OTCQB: TNYBF) develops and has licensed the production through its Long Beach, CA state-licensed manufacturing facility of terpene and cannabis-infused non-alcoholic Tinley's '27TMand Tinley's TonicsTM products which are distributed to licensed dispensaries and to home delivery channels in California. The Beckett's Classics® and Beckett's '27® lines are the non-alcoholic, non-cannabis versions of the Tinley's formulations and are available in select mainstream food, beverage, and specialty in the United States.
Forward-Looking Statements
This news release contains forward-looking statements and information (collectively, "forward-looking statements") within the meaning of applicable Canadian securities laws. Forward-looking statements are statements and information that are not historical facts but instead include financial projections and estimates, statements regarding plans, goals, objectives and intentions, statements regarding the Company's expectations with respect to its future business and operations, and the timing of the completion, approval and filing of its 2022 annual financial statements, management's discussion and analysis, and related officer certifications. Forward-looking statements are subject to significant risks and uncertainties, and other factors that could cause actual results to defer materially from expected results. Readers should not place undue reliance on forward-looking statements. These forward-looking statements are made as of the date hereof and the Company assumes no responsibility to update them or revise them to reflect new events or circumstances other than as required by law. Products, formulations, and timelines outlined herein are subject to change at any time.
For further information, please contact:
The Tinley Beverage Company Inc.
Teddy Zittell (310) 507-9146 relations@drinktinley.com
To view the source version of this press release, please visit https://www.newsfilecorp.com/release/165256
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The Tinley Beverage Company Inc. (CSE: TNY) (OTCQB: TNYBF) ("Tinley's" or the "Company") provides update on the status of the previously announced decommissioning of its Long Beach manufacturing facility and relocation of its bottling and related assets to the new Blaze Life Holdings, LLC ("BLH") 45,000 square foot cannabis manufacturing and distribution facility located in Canoga Park, California, and on related measures being immediately implemented to facilitate the relocation including, but not limited to, substantive cost cutting initiatives and changes to the board and management teams.
Corporate Updates
Relocation to Canoga Park Facility and Long Beach Production Schedule
Tinley's confirms that it will decommission its Long Beach bottling assets before the end of the second quarter of this year, and currently expects installation and commissioning of bottling lines at strategic partner BLH's Canoga Park facility to take place at the beginning of the third quarter of this year. To help client brands ensure sufficient inventory for testing and release of products to distribution through the transition, the Company is collaborating with Long Beach contract manufacturing clients to complete service requests by the end of the week of March 20, 2023 to confirm added production dates prior to the decommissioning of the Long Beach facility. A detailed press release outlining the Company's strategy and movement to the Canoga Park facility, including anticipated overhead savings of the Company, was issued on January 23, 2023.
Recent Long Beach Production
Working through the end of 2022 and into January 2023 with co-pack client Green Monké, the Company successfully completed production of newly formulated infused iced tea and lemonade varieties developed by Green Monké under contract for the well-known "Cookies" brand.
Production in Long Beach includes both repeat and new client SKU's as well as inventory-building orders from high-volume recurring clients booked across the Company's three manufacturing lines. The Company has also recently run Tinley's own brand batches, as well as the first of several production runs scheduled in Q2 2023 for our strategic partner BLH's Illa-Canna LLC's new infused drinks. Additionally, certain established and innovating brands, introduced to the Company by BLH, have booked production for their products this quarter in Long Beach on an interim basis prior to the planned move to the Canoga Park facility.
Beckett's USA - Reorder in Progress
Following receipt of new purchase orders from Total Wine & More to replenish inventory, production of Beckett's Tonics RTD and Beckett's '27 multi-serve spirits and liqueur is now underway at the Company's chosen contract manufacturers. Delivery to Total Wine & More is expected at or around the end of the current quarter.
Substantive Cost Cutting Initiatives
To ensure a successful transition from Long Beach to Canoga Park, and to ensure that adequate financial resources are available to the Company in a market where access to capital is severely limited, Tinley's has immediately implemented substantive cost cutting measures to aggressively preserve capital and accelerate expense reduction. These steps recognize recent challenges in capital markets, growing costs in the California cannabis sector and the need for superior manufacturing and distribution scale, benefits of which are expected to materialize following the move.
Canadian Business - Pause on Expansion
In Canada, market complexities including high entry costs and ongoing challenges to profitability based on market structure continue to present challenges. As a Canadian company with a wide base of Canadian retail shareholders, Tinley's board and management acknowledge the natural interest in participating profitably in Canadian markets. We also recognize our need to prioritize our responsibility to the Company to manage cash flow and profitably, and will propose to invest overhead dollars saved as a result of the move, and revenues from Tinley's California and Beckett's USA, into initiatives with higher probability potential of return. Based on a current analysis of reintroduction of reformulated infused products to the Ontario Cannabis Store and the complexities of relaunching Beckett's into Canada at this time, to reflect the need to preserve capital and reduce expenses to focus future investment on high return initiatives, the Company has decided to pause its plan to re-enter Canada indefinitely.
Staff and Management Changes
In addition to reducing staff at the Long Beach facility in anticipation of the move to BLH's Canoga Park facility, the Company also regrets to announce that effective immediately, Rick Gillis has agreed to step down from his role as President, Tinley's Brands USA, a decision primarily driven in support of the Company's initiatives for preserving capital and cost cutting, and his concurrent appointment to the Company's advisory board. "We thank Mr. Gillis for his contributions as a Tinley officer to date," said Ted Zittell, Tinley's director and CEO. "We welcome Rick's ongoing commitment to support the Company and our Tinley's and Beckett's brands in his new role on the Company's Advisory Board," he added. In order to contribute to the preservation of cash, the Company's CEO, CFO and certain remaining employees and consultants have temporarily agreed to defer their respective salaries for a limited period of time.
Advance from BLH
On or about March 16, 2023, the Company received an advance of $200,000 from the remaining funds available to the Company under the BLH lending facility, with the final $300,000 from BLH currently expected to be expended by the Company during the move to BLH's Canoga Park facility. The $200,000 will be applied by the Company for general corporate purposes to provide the Company, together with the Company's ordinary course collection of client receivables, with sufficient capital to undertake its ordinary course operations until the Company is able to move to BLH's Canoga Park facility and realize on anticipated synergies of that move.
Board Changes
The Company regrets to announce that effective immediately, Kirsten Chapman has resigned from the Company's Board of Directors for personal reasons and to pursue other commitments. We thank Kirsten for her service and wish her continued success in the future.
About The Tinley's Beverage Company and Beckett's Tonics
The Tinley's Beverage Company Inc. (CSE: TNY) (OTCQB: TNYBF) develops and has licensed the production through its Long Beach, CA state-licensed manufacturing facility of terpene and cannabis-infused non-alcoholic Tinley's™ '27 and Tinley's™ Tonics products which are distributed to licensed dispensaries and home delivery channels in California. Expansion of these products, adapted for manufacturing and sale in Canada, is currently underway. The Beckett's Classics® and Beckett's '27® lines of non-alcoholic, terpene-infused non-cannabis versions of these formulations are available in select mainstream food, beverage, and specialty retailers, as well as online, in the United States as well as having appeared in select grocery and specialty stores in Canada. The Long Beach Facility contains versatile and technologically advanced cannabis-licensed beverage bottling equipment, and provides manufacturing and first-mile distribution services under one roof for third-party brands in addition to the Company-owned brands. Please visit www.drinktinley.com, and www.drinkbecketts.com Twitter and Instagram (@drinktinleys and @drinkbecketts) for recipes, product information and home delivery options.
Forward-Looking Statements
This news release contains forward-looking statements and information (collectively, "forward-looking statements") within the meaning of applicable Canadian securities laws. Forward-looking statements are statements and information that are not historical facts but instead include financial projections and estimates, statements regarding plans, goals, objectives and intentions, statements regarding the Company's expectations with respect to its future business and operations, the timing of the completion of the transfer of the Company's operations from the Long Beach facility to the BLH facility, management's expectations regarding growth and phrases containing words such as "ongoing", "estimates", "expects", "anticipates", or the negative thereof or any other variations thereon or comparable terminology referring to future events or results, or that events or conditions "will", "may", "could", or "should" occur or be achieved, or comparable terminology referring to future events or results. Factors that could cause actual results to differ materially from any forward-looking statement include, but are not limited to, the timing of BLH's receipt of certain licences necessary to operate at the Canoga Park facility, the timing of the Canoga Park facility becoming fully operational, potential delays or unanticipated problems related to the relocation of Tinley's bottling assets to the Canoga Park facility, risks associated with Tinley's existing bottling customers continuing production at the Canoga Park facility and Tinley's existing can customers agreeing to move their production to the Canoga Park facility, Tinley's being sufficiently capitalized to meet its financial obligations related to the move to Canoga Park and otherwise continue to operate its business in the ordinary course, potential delays in obtaining, or failures to obtain, necessary governmental approvals required to operate the Canoga Park facility, political risks, uncertainties relating to the availability, and costs, of financing needed in the future, changes in equity markets, inflation, changes in exchange rates, fluctuations in input costs, the ability to resume expansion to the Canadian market at a later date and the ability to collect receivables. Forward-looking statements are subject to significant risks and uncertainties, and other factors that could cause actual results to differ materially from expected results. Readers should not place undue reliance on forward-looking statements. These forward-looking statements are made as of the date hereof and the Company assumes no responsibility to update them or revise them to reflect new events or circumstances other than as required by law. Products, formulations, and timelines outlined herein are subject to change at any time.
For further information, please contact:
The Tinley Beverage Company Inc.
Teddy Zittell
(310) 507-9146
relations@drinktinley.comCSE:TNY; OTC:TNYBF
Twitter: @drinktinleys and @drinkbecketts
Instagram: @drinktinleys and @drinkbecketts
www.drinktinley.com
To view the source version of this press release, please visit https://www.newsfilecorp.com/release/159229
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Provides Corporate Updates
The Tinley Beverage Company Inc. (CSE: TNY) (OTCQB: TNYBF) ("Tinley's" or the "Company") is pleased to provide updates on Company initiatives aimed to achieve revenue growth through the expansion of the Tinley's and Beckett's brands.
Tinley's product development team has commenced reformulation of select Tinley's products to include higher THC potency and new package formats. "In California, we see a preference in the dispensary channel for high THC potency beverages. By increasing the potency of our beverages in high-demand package formats, we plan to unlock revenue from this segment of the market," said Teddy Zittell, Tinley's CEO. Tinley's will also be officially re-launching home delivery of its beverages in California to address the largely untapped segment of California consumers who don't shop in dispensaries. The direct-to-consumer delivery of Tinley's cannabis beverages will be a collaboration between the Company and its cannabis brand distribution partner, Sulo Distro, and Grass Door, a leader in direct-to-consumer delivery of cannabis products.
"We believe home delivery customers, many of whom are new to the category, will respond favourably to our current lineup of Tinley's micro-dosed beverages, all of which are all low-calorie, low-carbohydrate and gluten-free," Mr. Zittell explained. "Through our management services agreement with Blaze Life Holding LLC ("BLH") and its subsidiary ILLA Canna LLC, we have locked in lower production costs for our own Tinley's brand and structured a continued revenue opportunity from current contract packing clients. We will now focus on driving increased revenue growth by building on our own brand," Mr. Zittell added.
Beckett's '27® & Beckett's Tonics® (USA)
The Beckett's relaunch at Total Wine & More, strategically timed with Dry January, has seen rapid and unprecedented sales across their more than 200 stores spanning 27 states. In response to Beckett's products being so well received by customers, Total Wine & More has reordered Beckett's products, and the Company has commenced production to satisfy this order. Additionally, the Company is actively pursuing expansion to other retail networks, distribution groups and channels, including on-premise. Store tests, which include product demonstrations and sampling, have been conducted at select H-E-B supermarket locations in Texas.
Becketts '27 & Becketts Classics (Canada)
The Company plans to relaunch Becketts brands in Canada starting in Ontario in Q2 2023. Based on consumer and retailer feedback for Becketts Classics (Beckett's Tonics® in the USA) ready-to-drink ("RTD") sparkling beverages, the products will now be packed in sleek 355ml aluminum cans. The Company has identified an Ontario based co-packer to produce these cans with the new recipes developed as part of the Company's overall product reformulation in 2022. This work was done by a leading international flavour company with experience in both non-alcoholic and alcoholic beverages. The RTD's are now intended to more accurately reflect the flavour profile of their beverage alcohol references.
For the Becketts '27® product line, the reformulation reduced the stevia aftertaste and more closely matches the target spirit or liqueur profile. The Company is in advanced stage negotiations with two potential Ontario-based co-packers who can produce in 375ml multi-serve cork-finish bottles. The Company is concurrently evaluating alternative routes to key markets across Canada with a range of distributor and broker options focused both on the mainstream and specialty grocery business and the beverage alcohol channel.
Tinley's Beverages (Canada)
In Canada, Tinley's product development team is continuing to evaluate new beverage options that are better suited for Canadian consumers and Canadian regulations. To this end, the Company is in the process of working on the re-introduction of new ready to serve beverages with a 10mg THC potency and infused with other novel cannabinoids, such as CBG. "We see the new Tinley's Classics ready-to-drink cannabis 'mocktails' as a product that will be well received by Canadian consumers," commented Mr. Zittell. "However, the long process in Canada of getting cannabis drinks from the development stage into the hands of consumers remains challenging for all cannabis beverage brands in Canada, including Tinley's," added Mr. Zittell.
Grant of Stock Options
Tinley's also announces the grant of stock options to purchase up to 1,800,000 common shares in the capital of the Company to certain directors and consultants of the Company in accordance with the terms of the Company's stock option plan. The stock options will be exercisable at a price of $0.10 per common share for a period of five years from the date of grant.
Forward-Looking Statements
This news release contains forward-looking statements and information (collectively, "forward-looking statements") within the meaning of applicable Canadian securities laws. Forward-looking statements are statements and information that are not historical facts but instead include financial projections and estimates, statements regarding plans, goals, objectives and intentions, statements regarding the Company's expectations with respect to its future business and operations, management's expectations regarding growth and phrases containing words such as "ongoing", "estimates", "expects", "anticipates", or the negative thereof or any other variations thereon or comparable terminology referring to future events or results, or that events or conditions "will", "may", "could", or "should" occur or be achieved, or comparable terminology referring to future events or results. Factors that could cause actual results to differ materially from any forward-looking statement include, but are not limited to variations in the Company's business plan and model in the future, the timing of the relaunch of the Company's home delivery operations in California and relaunch of the Becketts brand in Canada and impacts of the Company's management services agreement with BLH. Forward-looking statements are subject to significant risks and uncertainties, and other factors that could cause actual results to differ materially from expected results. Readers should not place undue reliance on forward-looking statements. These forward-looking statements are made as of the date hereof and the Company assumes no responsibility to update them or revise them to reflect new events or circumstances other than as required by law. Products, formulations, and timelines outlined herein are subject to change at any time.
For further information, please contact:
The Tinley Beverage Company Inc.
Teddy Zittell - (310) 507-9146
CSE:TNY; OTC:TNYBF relations@drinktinley.com
Twitter: @drinktinleys and @drinkbecketts
Instagram: @drinktinleys and @drinkbecketts
www.drinktinley.com
To view the source version of this press release, please visit https://www.newsfilecorp.com/release/153023
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Expected to Save Approximately USD $1 Million in Annual Operating Expenses
 The Tinley Beverage Company Inc. (CSE: TNY) (OTCQB: TNYBF) ("Tinley's" or the "Company") is pleased to announce that it has entered into a management services agreement (the "MSA") with Blaze Life Holdings, LLC ("BLH") and its wholly-owned subsidiary, ILLA Canna LLC, effective January 23, 2023.
Under the terms of the MSA, Tinley's will relocate its bottling assets and related equipment to BLH's new 45,000 square foot cannabis manufacturing and distribution facility located in Canoga Park, California (the "Canoga Park Facility") and BLH and its licensed subsidiaries will provide certain management and operational services to Tinley's. Based upon management's current financial modelling, the provision of such services by BLH and relocation of Tinley's bottling assets to the Canoga Park Facility is expected to result in operating cost savings of approximately USD $1 million per year. Tinley's CEO, Teddy Zittell, said: "Since we began our collaborative partnership with BLH in June 2022, we've successfully delivered cost reductions and increased our operating capacity. When production begins at the Canoga Park Facility, we expect efficiencies to accelerate, with additional benefits anticipated from the on-site capacity for inventory storage and integrated first-mile and last-mile distribution services provided by SuLo Distro, a subsidiary of BLH".
As part of the relocation of the Company's bottling assets, the Company will decommission and vacate its current manufacturing facility in Long Beach, California. Tinley's plans to move its bottling assets to the Canoga Park Facility during the latter half of Q2 2023 and expects such assets to be fully operational at the Canoga Park Facility by mid to late Q3 2023. During the transition from Tinley's current Long Beach facility to the Canoga Park Facility, which is expected to take approximately 30-45 days to complete, Tinley's will not be able to provide co-packing bottling services to its customers. Tinley's intends to increase bottling production during Q1 and Q2 2023 prior to its relocation of its bottling assets to the Canoga Park Facility to fulfill planned production and support co-packing demand in order to compensate for bottling line outages over the course of the move.
"As a result of the anticipated increase in production activity, we expect revenue to be higher than previously anticipated in Q1 and Q2 of 2023", said Mr. Zittell. "This increase is over and above the quarter-on-quarter revenue growth we previously expected in 2023. We have seen material revenue gains in the first three quarters of 2022, and our 2022 year-end financial results are expected to show increased revenue in Q4 2022. We have no reason to believe that this trend will not continue through 2023", Mr. Zittell added.
Until the Canoga Park Facility is fully operational, which is expected to happen in late Q2 or the beginning of Q3 2023, Tinley's will continue to produce cans at the Company's Long Beach facility for current co-pack customers, as well as for new customers introduced to Tinley's by BLH who require canned beverage manufacturing prior to the Canoga Park Facility becoming fully operational. Tinley's Long Beach can line will remain in production during the move of the Company's bottling assets to the Canoga Park Facility, and will continue to generate revenue until the Company fully exits the Long Beach facility, planned to occur at the end of Q2. Following the move to the Canoga Park Facility, BLH will produce beverages in cans for Tinley's existing can customers.
In consideration for the provision of services by BLH under the terms of the MSA, including manufacturing for Tinley's at the Canoga Park Facility, Tinley's has agreed to pay BLH a flat fee of USD $55,000 per month as well as a USD $70,000 annual fee specifically for the provision of certain prescribed accounting and administrative services by BLH set out in the MSA. Under the terms of the MSA, BLH has agreed to pay Tinley's certain referral fees for a period of two years based on revenue received by BLH in connection with the provision of co-packing canning services to Tinley's existing clients transferring production to BLH, and Tinley's will continue to receive 100% of the revenue generated from the use of Tinley's bottling assets at the Canoga Park Facility.
A copy of the MSA is available on the Company's profile at www.sedar.com.
About BLH
Blaze Life Holdings, LLC was founded in 2017 by two cannabis visionaries: Los Angeles real estate investor Scott Kim and Paul Burgis, former COO and CFO of Los Angeles-based Golden Road Brewing, which was acquired by Anheuser-Busch InBev in 2015. They saw the opportunity for a sophisticated, vertically integrated cannabis business that operationally parallels the craft brewing and brew pub scene, adapted to drive efficiency and growth in the rapidly expanding cannabis beverage industry. The BLH group comprises ILLA Canna LLC's existing licensed cultivation and manufacturing facilities, retail locations, SuLo Distro (full-service cannabis distributor built for beverage category growth), and Delta Bev (cannabis manufacturing), focused on providing clear and simple co-packing solutions for cannabis brands with an emphasis on beverages. BLH is helmed by professionals with a combined 80 years of experience in beer and beverage production, distribution, and brand-building, aligned to bring end-to-end solutions to brands and retailers to increase share and drive category growth.
About The Tinley's Beverage Company and Beckett's Tonics
The Tinley's Beverage Company Inc. (CSE: TNY) (OTCQB:TNYBF) develops and has licensed the production through its Long Beach, CA state-licensed manufacturing facility of terpene and cannabis-infused non-alcoholic Tinley's™ '27 and Tinley's™ Tonics products which are distributed to licensed dispensaries and home delivery channels in California. Expansion of these products, adapted for manufacturing and sale in Canada, is currently underway. The Beckett's Classics® and Beckett's '27® lines of non-alcoholic, terpene-infused non-cannabis versions of these formulations are available in select mainstream food, beverage, and specialty retailers, as well as online, in the United States as well as in select grocery and specialty stores in Canada. The Long Beach Facility contains versatile and technologically advanced cannabis-licensed beverage bottling equipment, and provides manufacturing and first-mile distribution services under one roof for third-party brands in addition to the Company-owned brands. Please visit www.drinktinley.com, and www.drinkbecketts.com Twitter and Instagram (@drinktinleys and @drinkbecketts) for recipes, product information and home delivery options.
Forward-Looking Statements
This news release contains forward-looking statements and information (collectively, "forward-looking statements") within the meaning of applicable Canadian securities laws. Forward-looking statements are statements and information that are not historical facts but instead include financial projections and estimates, statements regarding plans, goals, objectives and intentions, statements regarding the Company's expectations with respect to its future business and operations, the impact and expected benefits of the MSA, including with respect to the ability of the parties to achieve any material business synergies, the timing of the completion of the transfer of the Company's operations from the Long Beach Facility to the BLH Facility, management's expectations regarding growth and phrases containing words such as "ongoing", "estimates", "expects", "anticipates", or the negative thereof or any other variations thereon or comparable terminology referring to future events or results, or that events or conditions "will", "may", "could", or "should" occur or be achieved, or comparable terminology referring to future events or results. Factors that could cause actual results to differ materially from any forward-looking statement include, but are not limited to, the timing of BLH's receipt of certain licenses necessary to operate at the Canoga Park Facility, the timing of the Canoga Park Facility becoming fully operational, potential delays or unanticipated problems related to the relocation of Tinley's bottling assets to the Canoga Park Facility, risks associated with Tinley's existing bottling customers continuing production at the Canoga Park Facility and Tinley's existing can customers agreeing to move their production to the Canoga Park Facility, Tinley's being sufficiently capitalized to meet its financial obligations related to the move to Canoga Park, potential delays in obtaining, or failures to obtain, necessary governmental approvals required to operate the Canoga Park Facilities, political risks, uncertainties relating to the availability, and costs, of financing needed in the future, changes in equity markets, inflation, changes in exchange rates, fluctuations in input costs, and the ability of BLH and the Company to achieve certain expected synergies as a result of the entering into of the MSA. Forward-looking statements are subject to significant risks and uncertainties, and other factors that could cause actual results to differ materially from expected results. Readers should not place undue reliance on forward-looking statements. These forward-looking statements are made as of the date hereof and the Company assumes no responsibility to update them or revise them to reflect new events or circumstances other than as required by law. Products, formulations, and timelines outlined herein are subject to change at any time.
For further information, please contact:
The Tinley Beverage Company Inc.
Teddy Zittell
(310) 507-9146
relations@drinktinley.comCSE:TNY; OTC:TNYBF
Twitter: @drinktinleys and @drinkbecketts
Instagram: @drinktinleys and @drinkbecketts
www.drinktinley.com
To view the source version of this press release, please visit https://www.newsfilecorp.com/release/152153
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New Citrus County location will host grand opening celebration on Friday, July 5th
Trulieve Cannabis Corp. (CSE: TRUL ) (OTCQX: TCNNF ) ("Trulieve" or "the Company"), a leading and top-performing cannabis company in the U.S., today announced the opening of a new medical cannabis dispensary in Homosassa, Florida .
A grand opening celebration will be held this Friday, beginning at 9 a.m. , featuring music, specials, discounts, and opportunities to register for upcoming patient education sessions.
"We are excited to open our first dispensary in Homosassa , providing medical cannabis to patients in Citrus County ," said Trulieve's Chief Executive Officer Kim Rivers . "This convenient location offers patients high-quality branded products and world class customer experiences."
Trulieve Homosassa, located at 5679 S Suncoast Blvd, will be open 9 a.m. – 8:30 p.m. Monday through Saturday and 11 a.m. – 8 p.m. on Sundays , offering walk-in and express pickup service.
The new location will carry a wide variety of popular products including Trulieve's portfolio of in-house brands such as Alchemy, Co2lors, Cultivar Collection, Modern Flower, Momenta, Muse, Roll One, Sweet Talk, and Trekkers. Customers will also have access to beloved partner brands such as Alien Labs, Bellamy Brothers , Binske, Black Tuna, Blue River , Connected Cannabis, DeLisioso, Khalifa Kush , Love's Oven, Miami Mango, O.pen, Seed Junky, and Sunshine Cannabis, all available exclusively at Trulieve in Florida .
Across Florida , Trulieve offers home delivery, convenient online ordering, and in-store pickup. Veterans receive 20% off every order when they show their military ID, and all first-time guests are eligible for a 60% new customer discount at any Florida Trulieve location. For more information, or to learn how to become a registered patient, please visit Trulieve.com and connect on Instagram or Facebook .
About Trulieve
Trulieve is an industry leading, vertically integrated cannabis company and multi-state operator in the U.S., with leading market positions in Arizona , Florida , and Pennsylvania . Trulieve is poised for accelerated growth and expansion, building scale in retail and distribution in new and existing markets through its hub strategy. By providing innovative, high-quality products across its brand portfolio, Trulieve delivers optimal customer experiences and increases access to cannabis, helping patients and customers to live without limits. Trulieve is listed on the CSE under the symbol TRUL and trades on the OTCQX market under the symbol TCNNF. For more information, please visit Trulieve.com .
Facebook: @Trulieve
Instagram: @Trulieve_
X: @Trulieve
Investor Contact
Christine Hersey , Vice President of Investor Relations
+1 (424) 202-0210
Christine.Hersey@Trulieve.com
Media Contact
Phil Buck , APR, Corporate Communications Manager
+1 (406) 370-6226
Philip.Buck@Trulieve.com
View original content to download multimedia: https://www.prnewswire.com/news-releases/trulieve-to-open-medical-cannabis-dispensary-in-homosassa-florida-302187507.html
SOURCE Trulieve Cannabis Corp.
View original content to download multimedia: http://www.newswire.ca/en/releases/archive/July2024/02/c1548.html
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Grand opening celebrations at both locations Friday, July 5 th
Trulieve Cannabis Corp. (CSE: TRUL ) (OTCQX: TCNNF ) ("Trulieve" or "the Company"), a leading and top-performing cannabis company in the U.S., today announced the opening of new medical cannabis dispensaries in Madison and Panama City, Florida .
Grand opening celebrations will be held at both locations Friday, July 5 , beginning at 9 a.m. , featuring music, specials, discounts, and opportunities to register for upcoming patient education sessions. Information pertaining to the #YesOn3 ballot initiative for adult use will be available.
"These dispensaries expand access to medical cannabis in Madison and Bay Counties," said Trulieve's Chief Executive Officer Kim Rivers . "We are thrilled to offer patients in these communities new, convenient locations where they can rely on Trulieve's high-quality products and outstanding customer service."
Trulieve Madison, located at 456 W Base St., and Trulieve Panama City, located at 1020 E 23 rd St., will be open 9 a.m. – 8:30 p.m. Monday through Saturday and 11 a.m. – 8 p.m. on Sundays , offering walk-in and express pickup service.
Both locations will carry a wide variety of popular products including Trulieve's portfolio of in-house brands such as Alchemy, Co2lors, Cultivar Collection, Modern Flower, Momenta, Muse, Roll One, Sweet Talk, and Trekkers. Customers will also have access to beloved partner brands such as Alien Labs, Bellamy Brothers , Binske, Black Tuna, Blue River , Connected Cannabis, DeLisioso, Khalifa Kush , Love's Oven, Miami Mango, O.pen, Seed Junky, and Sunshine Cannabis, all available exclusively at Trulieve in Florida .
Across Florida , Trulieve offers home delivery, convenient online ordering, and in-store pickup. Veterans receive 20% off every order when they show their military ID, and all first-time guests are eligible for a 60% new customer discount at any Florida Trulieve location. For more information, or to learn how to become a registered patient, please visit Trulieve.com and connect on Instagram or Facebook .
About Trulieve
Trulieve is an industry leading, vertically integrated cannabis company and multi-state operator in the U.S., with leading market positions in Arizona , Florida , and Pennsylvania . Trulieve is poised for accelerated growth and expansion, building scale in retail and distribution in new and existing markets through its hub strategy. By providing innovative, high-quality products across its brand portfolio, Trulieve delivers optimal customer experiences and increases access to cannabis, helping patients and customers to live without limits. Trulieve is listed on the CSE under the symbol TRUL and trades on the OTCQX market under the symbol TCNNF. For more information, please visit Trulieve.com .
Facebook: @Trulieve
Instagram: @Trulieve_
X: @Trulieve
Investor Contact
Christine Hersey , Vice President of Investor Relations
+1 (424) 202-0210
Christine.Hersey@Trulieve.com
Media Contact
Phil Buck , APR, Corporate Communications Manager
+1 (406) 370-6226
Philip.Buck@Trulieve.com
View original content to download multimedia: https://www.prnewswire.com/news-releases/trulieve-to-open-florida-medical-cannabis-dispensaries-in-madison-and-panama-city-302186553.html
SOURCE Trulieve Cannabis Corp.
View original content to download multimedia: http://www.newswire.ca/en/releases/archive/July2024/01/c8568.html
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Cronos Group Inc.'s (NASDAQ: CRON) (TSX: CRON) ("Cronos" or the "Company") Spinach ® brand is expanding its portfolio of award-winning and best-selling cannabis products just in time for the summer months. Summer innovations feature new flavors and formats from Cronos' SOURZ by Spinach ® edibles and a premier milled flower product.
The new SOURZ by Spinach ® Fully Blasted gummies offer the same great-tasting SOURZ by Spinach ® flavors, now with 10 mg of THC per piece. The SOURZ by Spinach ® Tropical Party Pack introduces new gummies with bolder tropical flavors, in the distinctive Spinach ® "S" shape. These gummies have a perfect blend of sour and sweet and utilize Cronos' proprietary flavor-masking technology.
SOURZ by Spinach ® Fully Blasted includes one 10 mg THC gummy per package in the following flavors:
SOURZ by Spinach ® Tropical Party Pack :
Additionally, the Spinach ® brand will introduce Spinach Grindz™, milled flower options designed to be ready to use for joints or vaporizers. Ready-to-use milled flower offerings have grown in popularity in the Canadian cannabis market, appealing to value-conscious consumers seeking convenience. Spinach Grindz™ caters to this growing demand by providing high-quality, milled cannabis that saves time and effort, allowing consumers to enjoy a consistent and hassle-free cannabis experience.
Spinach Grindzâ„¢ are now available in the following strains:
"We are thrilled to introduce these exciting new products under our Spinach ® brand just in time for summer," said Mike Gorenstein, Chairman, President, and CEO of Cronos Group. "Our goal is to continually innovate and provide our adult consumers with high-quality, enjoyable cannabis experiences. With these new products from our best-selling Spinach ® brand featuring vibrant new flavors and sought-after strains, we believe there's something for everyone this summer season."
For more information and regional availability, visit https://spinachcannabis.com/ .
About Cronos Group Inc.
Cronos is an innovative global cannabinoid company committed to building disruptive intellectual property by advancing cannabis research, technology and product development. With a passion to responsibly elevate the consumer experience, Cronos is building an iconic brand portfolio. Cronos' diverse international brand portfolio includes Spinach ® , PEACE NATURALS ® and Lord Jones ® . For more information about Cronos and its brands, please visit: thecronosgroup.com.
Forward-looking Statements
This press release may contain information that may constitute "forward-looking information" or "forward-looking statements" within the meaning of applicable Canadian and U.S. securities laws and court decisions (collectively, "Forward-looking Statements"). All information contained herein that is not clearly historical in nature may constitute Forward-looking Statements. In some cases, Forward-looking Statements can be identified by the use of forward-looking terminology such as "may", "will", "expect", "plan", "anticipate", "intend", "potential", "estimate", "believe" or the negative of these terms, or other similar expressions intended to identify Forward-looking Statements. Some of the Forward-looking Statements contained in this press release include statements about anticipated product launches, the timing of such launches and the availability of such products; consumer reception with respect to new product launches; the consumer experience with respect to new product launches; continual product innovation; and Cronos' intention to build an international iconic brand portfolio and develop disruptive intellectual property by advancing cannabis research, technology and product development. Forward-looking Statements are necessarily based upon a number of estimates and assumptions that, while considered reasonable by management, are inherently subject to significant business, economic and competitive risks. Financial results, performance or achievements expressed or implied by those Forward-looking Statements and the Forward-looking Statements are not guarantees of future performance. A discussion of some of the material risks applicable to the Company can be found in the Company's Annual Report on Form 10-K for the year ended December 31, 2023 and Quarterly Report on Form 10-Q for the quarter ended March 31, 2024, each of which has been filed on SEDAR+ and EDGAR and can be accessed at www.sedarplus.ca and www.sec.gov/edgar, respectively. Any Forward-looking Statement included in this press release is made as of the date of this press release and, except as required by law, Cronos disclaims any obligation to update or revise any Forward-looking Statement. Readers are cautioned not to put undue reliance on any Forward-looking Statement.
For further information, please contact:
Investor Relations Contact:
Shayne Laidlaw
Investor Relations
Tel: (416) 504-0004
investor.relations@thecronosgroup.com
Media Relations Contact:
Emily Whalen
Communications
Tel: (416) 504-0004
media.relations@thecronosgroup.com
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Cronos Group Inc. (NASDAQ: CRON) (TSX: CRON) ("Cronos" or the "Company") announces that at its Annual Meeting of Shareholders held yesterday, June 20, 2024 (the "Meeting"), shareholders holding a total of 274,097,252 common shares of the Company voted in person or by proxy, representing 71.75% of the total number of common shares of the Company outstanding.
Each of the directors listed as a nominee in the Company's definitive proxy statement dated April 26, 2024 was elected as a director of the Company, with each director receiving in excess of 93.4% of the votes cast in favor of his or her election. The detailed results of the vote for the election of directors are as follows:
| Name of Director | Number of Shares Voted For | Percentage of Shares Voted For | Number of Shares Withheld from Voting | Percentage of Shares Withheld from Voting |
| Jason Adler | 215,118,391 | 98.33% | 3,654,113 | 1.67% |
| Murray Garnick | 215,949,040 | 98.71% | 2,823,464 | 1.29% |
| Michael Gorenstein | 204,416,959 | 93.44% | 14,355,545 | 6.56% |
| Kamran Khan | 207,976,756 | 95.07% | 10,795,748 | 4.93% |
| Dominik Meier | 208,048,529 | 95.10% | 10,723,975 | 4.90% |
| James Rudyk | 215,011,800 | 98.28% | 3,760,704 | 1.72% |
| Elizabeth Seegar | 205,934,088 | 94.13% | 12,838,416 | 5.87% |
Shareholders also approved an advisory (non-binding) resolution on the compensation of the Company's named executive officers, with 96.19% of votes cast in favor of such resolution, and approved the adjournment of the Meeting to a later date to permit the Company to complete the search for a successor independent auditor.
At the time of the Meeting, the Company had not completed its process to identify, and make a recommendation with respect to the appointment by the shareholders of, a successor independent auditor. Accordingly, Proposal No. 3 regarding the appointment of an independent registered public accounting firm to serve as the Company's independent auditor for the fiscal year ending December 31, 2024 and to authorize the Board of Directors of the Company (the "Board") to fix the independent auditor's remuneration was not presented to shareholders and, with the approval of the shareholders, the Meeting was adjourned to permit the Company to complete the search for a successor auditor. At the reconvened Meeting, shareholders will be asked to vote on the appointment of the successor independent auditor and the authorization of the Board to fix the successor independent auditor's remuneration. Once a successor auditor is identified, the Company will disseminate to shareholders information regarding the identity of the proposed independent registered public accounting firm to serve as the Company's independent auditor and to audit the consolidated financial statements of the Company of and for the fiscal year ending December 31, 2024, together with information regarding the reconvened Meeting.
For complete results on all matters voted on at the Meeting, please see the Report of Voting Results filed on the Company's SEDAR+ profile at www.sedarplus.com and the Company's Form 8-K filed on EDGAR at www.sec.gov/edgar.
About Cronos
Cronos is an innovative global cannabinoid company committed to building disruptive intellectual property by advancing cannabis research, technology and product development. With a passion to responsibly elevate the consumer experience, Cronos is building an iconic brand portfolio. Cronos' diverse international brand portfolio includes Spinach®, PEACE NATURALS® and Lord Jones®. For more information about Cronos and its brands, please visit: thecronosgroup.com.
Forward-Looking Statements
This press release may contain information that may constitute "forward-looking information" or "forward-looking statements" within the meaning of applicable Canadian and U.S. securities laws and court decisions (collectively, "Forward-looking Statements"). All information contained herein that is not clearly historical in nature may constitute Forward-looking Statements. In some cases, Forward-looking Statements can be identified by the use of forward-looking terminology such as "may", "will", "expect", "plan", "anticipate", "intend", "potential", "estimate", "believe" or the negative of these terms, or other similar expressions intended to identify Forward-looking Statements. Some of the Forward-looking Statements contained in this press release include statements about Cronos' intention to build an iconic brand portfolio and develop disruptive intellectual property, identify and recommend the appointment by the shareholders of a successor independent auditor and reconvene the Meeting. Forward-looking Statements are necessarily based upon a number of estimates and assumptions that, while considered reasonable by management, are inherently subject to significant business, economic and competitive risks, financial results, results, performance or achievements expressed or implied by those Forward-looking Statements and the Forward-looking Statements are not guarantees of future performance. A discussion of some of the material risks applicable to the Company can be found in the Company's Annual Report on Form 10-K for the year ended December 31, 2023, and quarterly report on Form 10-Q for the quarter ended March 31, 2024, which have been filed on SEDAR+ and EDGAR and can be accessed at www.sedarplus.com and www.sec.gov/edgar, respectively. Any Forward-looking Statement included in this press release is made as of the date of this press release and, except as required by law, Cronos disclaims any obligation to update or revise any Forward-looking Statement. Readers are cautioned not to put undue reliance on any Forward-looking Statement.
For further information, please contact:
Shayne Laidlaw
Investor Relations
Tel: (416) 504-0004
investor.relations@thecronosgroup.com
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Cronos Group Inc. (NASDAQ: CRON) (TSX: CRON) ("Cronos" or the "Company"), an innovative global cannabinoid company, announced an expansion of Cronos Growing Company ("GrowCo"). GrowCo is a leading cannabis cultivation company that Cronos owns 50% of. The investment will be funded by an additional credit facility provided by Cronos and is intended to assist GrowCo's expansion of its purpose-built cannabis facility to address the increased global market demand for high-quality cannabis flower.
Key Highlights of the Investment:
GrowCo has consistently demonstrated exceptional cultivation performance, contributing significantly to Cronos' portfolio. In 2023 Cronos purchased approximately $21 million of biomass from GrowCo, and GrowCo sold approximately $20 million to third parties. GrowCo has strong gross margins that the Company expects to be accretive on a consolidated basis and delivered positive net income and positive cash flow in 2023. This success underscores GrowCo's ability to produce premium cannabis at scale, meeting our stringent quality standards and market demands. The expansion will aid our ability to supply markets we operate in, which include Canada, Israel, Germany, the United Kingdom, and Australia, while also fueling the potential for international expansion.
"This investment enables GrowCo to increase its production of high-quality cannabis which supports our ambition to expand across the markets we operate in, and add new international growth opportunities where they arise," said Mike Gorenstein, Chairman, President, and CEO of Cronos. "At the onset of cannabis legalization, we deliberately chose not to overbuild our facilities, focusing instead on quality and meeting consumer needs first and scaling later. With the Spinach ® brand achieving the number one flower brand in Canada 1 , strong international demand for Peace Naturals ® , and GrowCo's proven track record of success - now is the right time to expand as there is a clear need for high-quality flower. This investment sets us up well to meet the increasing demand and seize the right opportunities as they arise."
Transaction Details
Cronos will provide an approximately $51 million ($70 million CAD) secured non-revolving credit facility to GrowCo. GrowCo intends to use the credit facility to fund the construction of an expansion to its existing purpose-built cannabis facility in Leamington, Ontario. The interest rate under the credit facility is equal to the Canadian Prime Rate plus 1.25% and is payable quarterly. However, GrowCo is not required to begin repaying the $51 million principal until the quarter after the commencement of sales from the newly constructed area, at which point principal repayment will be made quarterly. The credit facility will mature 10 years after the commencement of sales from the newly constructed area, which are anticipated to begin in the second half of 2025. The credit facility is secured by all present and after-acquired property of GrowCo and its subsidiaries. The terms of the $105 million CAD credit facility that Cronos previously made available to GrowCo remain unchanged.
The credit facility contains customary representations and warranties and operating covenants. Advances under the credit facility are subject to customary conditions.
Pursuant to a supply agreement between Cronos and GrowCo, prior to the first sale of products from the newly constructed area, Cronos will have the option, but not the obligation, to purchase approximately 80% of GrowCo's production. Following first sales from the newly constructed area, Cronos will have the option, but not the obligation, to purchase 70% of all GrowCo's supply on an annual basis. The supply agreement will remain in place for four years.
Completion of construction of the facility expansion is subject to obtaining the relevant building and occupancy permits and other customary approvals. Commencement of operations in the additional areas at GrowCo will be subject to obtaining the appropriate licenses under applicable law.
1 HiFyre POS Retail Dollar Sales Data P12M June 2023 - May 2024, Ending May 31, 2024. Accessed June 19, 2024.
About Cronos
Cronos is an innovative global cannabinoid company committed to building disruptive intellectual property by advancing cannabis research, technology and product development. With a passion to responsibly elevate the consumer experience, Cronos is building an iconic brand portfolio. Cronos' diverse international brand portfolio includes Spinach ® , PEACE NATURALS ® and Lord Jones ® . For more information about Cronos and its brands, please visit: thecronosgroup.com.
Forward-looking Statements
This press release may contain information that may constitute "forward-looking information" or "forward-looking statements" within the meaning of applicable Canadian and U.S. securities laws and court decisions (collectively, "Forward-looking Statements"). All information contained herein that is not clearly historical in nature may constitute Forward-looking Statements. In some cases, Forward-looking Statements can be identified by the use of forward-looking terminology such as "may", "will", "expect", "plan", "anticipate", "intend", "potential", "estimate", "believe" or the negative of these terms, or other similar expressions intended to identify Forward-looking Statements. Some of the Forward-looking Statements contained in this press release include statements about the Company's future plans and relationship with GrowCo, the changing size of the GrowCo board of directors, expectations around GrowCo's supplying of products to Cronos, the expected consolidation of GrowCo's results of operations in Cronos' publicly reported financial statements, the expansion of Cronos' ability to supply markets it operates in as well as new markets in the future, increasing demand for cannabis, conditions to the completion of the construction of the new facility and the commencement of operations and Cronos' intention to build an international iconic brand portfolio and develop disruptive intellectual property. Forward-looking Statements are necessarily based upon a number of estimates and assumptions that, while considered reasonable by management, are inherently subject to significant business, economic and competitive risks, financial results, results, performance or achievements expressed or implied by those Forward-looking Statements and the Forward-looking Statements are not guarantees of future performance. A discussion of some of the material risks applicable to the Company can be found in the Company's Annual Report on Form 10-K for the year ended December 31, 2023 and Quarterly Report on Form 10-Q for the quarter ended March 31, 2024, each of which has been filed on SEDAR+ and EDGAR and can be accessed at www.sedarplus.ca and www.sec.gov/edgar, respectively. Any Forward-looking Statement included in this press release is made as of the date of this press release and, except as required by law, Cronos disclaims any obligation to update or revise any Forward-looking Statement. Readers are cautioned not to put undue reliance on any Forward-looking Statement.
For further information, please contact:
Investor Relations Contact:
Shayne Laidlaw
Investor Relations
Tel: (416) 504-0004
investor.relations@thecronosgroup.com
Media Relations Contact:
Emily Whalen
Communications
Tel: (416) 504-0004
media.relations@thecronosgroup.com
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Goodness Growth Holdings, Inc. ("Goodness Growth" or the "Company") (CSE: GDNS; OTCQX: GDNSF), a cannabis company committed to providing safe access, quality products and great value to its customers, today announced that it completed the previously announced non-brokered private placement of its subordinate voting shares on June 14, 2024.
In aggregate, the Company issued 1,300,078 subordinate voting shares at a 30-day volume weighted average price (VWAP) of US $0.5384 as of May 17, 2024, representing gross proceeds of US $700,000. As previously disclosed, proceeds from the transaction will be utilized in connection with a mortgage note that's supporting the relocation of one of the Company's retail dispensaries in Minnesota.
The Company also announced today that it executed an eighth amendment to its credit agreement with its senior secured lender, Chicago Atlantic Admin, LLC, an affiliate of Green Ivy Capital. While the parties are working toward finalizing a longer-term extension of the credit agreement, the eighth amendment extends the maturity date on the term loan until July 31, 2024, matching all other terms of the existing agreement.
Goodness Growth Holdings Chief Executive Officer Josh Rosen commented, "While the timing of today's announcements of the closing of our previously announced private placement and temporary extension of our credit agreement are unrelated, it is important to highlight that both of these developments were completed with the continued support of our senior secured lender. The private placement was completed essentially at market to help us execute a high ROI investment opportunity and prepare our business for the launch of adult-use sales in Minnesota. We expect to complete a long-term extension of our credit agreement soon and we appreciate the collaborative support from our lender."
About Vireo & Goodness Growth
Vireo (Goodness Growth) was founded as a pioneer in medical cannabis in 2014 and we are fueled by an entrepreneurial drive that sustains our ongoing commitment to serve and delight our key stakeholders, most notably our customers, our employees, our shareholders, our industry collaborators, and the communities in which we live and operate. We work every day to get better and our team prioritizes 1) empowering and supporting strong local market leaders and 2) strategic, prudent capital and human resource allocation. For more information, please visit www.vireohealth.com .
Goodness Growth Holdings Contact Information
Investor Inquiries:
Sam Gibbons
Investor Relations
investor@vireohealth.com
(612) 314-8995
Media Inquiries:
Amanda Hutcheson
Senior Manager, Communications
amandahutcheson@goodnessgrowth.com
(919) 815-1476
Forward-Looking Statement Disclosure
This press release contains "forward-looking information" within the meaning of applicable United States and Canadian securities legislation. To the extent any forward-looking information in this press release constitutes "financial outlooks" within the meaning of applicable United States or Canadian securities laws, this information is being provided as preliminary financial results; the reader is cautioned that this information may not be appropriate for any other purpose and the reader should not place undue reliance on such financial outlooks. Forward-looking information contained in this press release may be identified by the use of words such as "should," "believe," "estimate," "would," "looking forward," "may," "continue," "expect," "expected," "will," "likely," "subject to," "transformation," and "pending," variations of such words and phrases, or any statements or clauses containing verbs in any future tense. These statements should not be read as guarantees of future performance or results. Forward-looking information includes both known and unknown risks, uncertainties, and other factors which may cause the actual results, performance, or achievements of the Company or its subsidiaries to be materially different from any future results, performance, or achievements expressed or implied by the forward-looking statements or information contained in this press release. Financial outlooks, as with forward-looking information generally, are, without limitation, based on the assumptions and subject to various risks as set out herein and in our Annual Report on Form 10-K filed with the Securities Exchange Commission. Our actual financial position and results of operations may differ materially from management's current expectations and, as a result, our revenue, EBITDA, and cash on hand may differ materially from the values provided in this press release. Forward-looking information is based upon a number of estimates and assumptions of management, believed but not certain to be reasonable, in light of management's experience and perception of trends, current conditions, and expected developments, as well as other factors relevant in the circumstances, including assumptions in respect of current and future market conditions, the current and future regulatory environment, and the availability of licenses, approvals and permits.
Although the Company believes that the expectations and assumptions on which such forward-looking information is based are reasonable, the reader should not place undue reliance on the forward-looking information because the Company can give no assurance that they will prove to be correct. Actual results and developments may differ materially from those contemplated by these statements. Forward-looking information is subject to a variety of risks and uncertainties that could cause actual events or results to differ materially from those projected in the forward-looking information. Such risks and uncertainties include, but are not limited to: risks related to the timing and content of adult-use legislation in markets where the Company currently operates; current and future market conditions, including the market price of the subordinate voting shares of the Company; risks related to epidemics and pandemics; federal, state, local, and foreign government laws, rules, and regulations, including federal and state laws and regulations in the United States relating to cannabis operations in the United States and any changes to such laws or regulations; operational, regulatory and other risks; execution of business strategy; management of growth; difficulties inherent in forecasting future events; conflicts of interest; risks inherent in an agricultural business; risks inherent in a manufacturing business; liquidity and the ability of the Company to raise additional financing to continue as a going concern; the Company's ability to meet the demand for flower in Minnesota; risk of failure in the lawsuit with Verano and the cost of that litigation; our ability to dispose of our assets held for sale at an acceptable price or at all; and risk factors set out in the Company's Form 10-K for the year ended December 31, 2023, which is available on EDGAR with the U.S. Securities and Exchange Commission and filed with the Canadian securities regulators and available under the Company's profile on SEDAR at www.sedar.com .
The statements in this press release are made as of the date of this release. Except as required by law, we undertake no obligation to update any forward-looking statements or forward-looking information to reflect events or circumstances after the date of such statements.
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