1933 Industries (TGIF.C) is expanding its Las Vegas-based CBD production facility to meet demand in the post-Farm Bill landscape.
The company’s prospects for 2019 are looking bullish as 1933’s CBD manufacturing is increasing from 200 kilograms per month to an anticipated 2,000 kilograms per month.
All of the zoning and hazardous material permissions have been acquired for the expansion, and the company intends on renovating their 12,160-square foot building to make room for a cannabis production facility and a CBD lab.
This came just in time because President Trump signed the Farm Bill today, effectively legalizing hemp with only a few provisions. The signing of the Farm Bill is excellent for the TGIF brand, which is well positioned with their enhanced extraction schedule for 2019 to expand into entirely new CBD markets in the US, while increasing attention and participation from both financial institutions and investors.
TGIF already has an Industrial Hemp Handler Certificate from the Nevada Department of Agriculture.
“We are making strategic investments in expanded capacity to produce isolated cannabidiol extract to establish ourselves as a market leader in the CBD industry and to position the company for the exponential growth of one of the fastest-growing segments in the cannabis industry. As pioneers in the cannabis industry in Nevada, we have the vision, resources, know-how and in-house talent to ensure a successful venture into this emerging and exciting field,” said Chris Rebentisch, United States COO and founder of Infused MFG, a subsidiary of 1933 Industries.
Renovations are expected to commence after design plan approval, and the proposed CBD lab will be able to process wholesale hemp-derived CBD extracts, full-spectrum oils, distillates and isolates.
Included in the Farm Bill is a provision to legalize industrial hemp cultivation, production and distribution, effectively rescheduling hemp from a Class I to a Class V drug, tucked in beside codeine and other readily available over-the-counter drugs. It also allows hemp farming for industrial purposes across all states, which has been on the rise due to increased CBD production.
“The impact of the Farm Bill is significant to our business. The new bill clarifies the legal status of hemp-derived CBD extracts. Overall, we expect the CBD industry to break market expectations, become commoditized, and follow strict regulations. We believe that the greatest return on investment over the next 5 years is in producing isolated cannabidiol extract and we will have a leading position in this area,” Rebentisch said.
1933 Industries is a Canadian cannabis company with assets in Las Vegas, Nevada, Colorado and California. They have been generating almost $2 million a month in sales so they’re looking to scale up appropriately.
Here are some of 1933’s key Nevada highlights:
- First licensed cultivator
- Expanding real estate portfolio
- Strong foothold in CBD and THC products
- Hemp-processing and CBD extraction vertical
- New 67,750 sq. ft. cultivation-only facility
- Expanding production space to 12,160 sq. ft.
- CBD processing facility for oils, distillates and isolates
“As we enter the hemp processing business in early 2019, the new legislation will create a robust market for hemp at competitive rates and will provide greater access to biomass, while highlighting the need for CBD processing facilities. The untapped versatility of CBD will become sought-after, as regular products begin to be infused with CBD and national retailers enter this sector. This is an explosive market and we are pleased to be at the forefront of the next consumer packaged goods revolution,” said Braden Sutton, CEO of 1933 Industries.
With revenues for the fiscal year ending June 30 at $529.9 million overall with $429.9 million for recreational use alone, Nevada’s cannabis industry is on fire.
“Nevada’s first year with a legal adult-use market has not only exceeded revenue expectations but proven to be a largely successful one from a regulatory standpoint,” said Bill Anderson, executive director of the Nevada department of taxation.
According to the Nevada Dispensary Association, the state could pull in a cool $1 billion in taxes from the weed business in the first seven years of legal recreational cannabis. The association projects more than 8,000 jobs will be generated during that time.
The Farm Bill goes into effect on new years day.
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