1933 Industries (TGIF.C) has hired master grower to spearhead its subsidiary, Alternative Medicine Association, as it shifts production to its new Las Vegas facility.
The US farm bill went live on Jan. 1, changing the rules for sourcing hemp-derived CBD and giving companies like 1933 the opportunity to scale up their production.
The company is working to expand its CBD manufacturing capacity from 200 kilograms per month to an anticipated 2,000 kilograms per month. That means they will require new people, new management and new leadership to oversee these large scale operations. Enter Tim Spencer, master grower.
“Tim has expertise at a scale rarely seen in the cannabis sector. He brings technical knowledge and hands-on experience to ensure productivity and efficiency in large-scale commercial cultivation environments. We are confident that Tim will be instrumental in the successful launch of our new operations in Las Vegas,” said Chris Rebentisch, COO of 1933 Industries.
As the resident master grower, Spencer’s responsibilities will include management of all aspects of Alternative Medicine Associations operation, including production planning to cultivation and harvesting, with the express purpose of maximizing sales, output and profitability.
Spencer brings with him more than two decades of professional experience as an agriculture specialist, with 10 years spent in California and Colorado’s legal cannabis sector.
“We are pleased to report another strong quarter of steady growth from our subsidiary companies. Increased demand for our cannabis products in the States of Nevada, California and Colorado are continuing to fuel this growth, while we focus on expanding wholesale capacity for our THC line of products and increasing sales of our CBD products across the U.S. To maintain this growth, we have added key members to our team in finance, business development, sales and marketing and operations. We continue to make progress on our expansion in Las Vegas and remain focused on both organic and accretive growth in the next quarter,” said Brayden Sutton, CEO of 1933 Industries.
After beginning to grow medical cannabis in California in 2008, Spencer began to run his own cannabis facility before working as cultivation director for The Green Solution, one of Colorado’s biggest cannabis companies.
While with The Green Solution, he oversaw 250,000 square feet of five tier vertical indoor production, including more than 45,000 plants, with over 180 employees and one million square feet of outdoor greenhouse production over four cultivation sites.
Not even a month in and 2019 is looking completely different from the previous year. While these numbers aren’t great, they do represent a company’s short term growing pains:
All amounts expressed are in Canadian dollars:
- Consolidated revenues of $4,616,812, an increase of 46% over same quarter last year
- 18% revenue increase over the fourth quarter 2018
- Gross margin of $1,932,332 (42%)
- Cash balance of $15,165,630 at the end of the period
- Net loss of $3,046,665
- Negative adjusted EBITDA of $857,845
- Total assets increased to $56,486,526, up from $41,339,616 in the previous quarter
- Alternative Medicine Association reports sales revenue of $2,256,764, with a gross margin of $702,472 (31%)
- Infused MFG. (“Infused”) reports $2,278,143 in sales revenue with gross margin of $1,147,955 (50%)
- Spire Global Strategy reports consulting revenue of $81,905
TGIF started this year by absorbing a loss, but with their new production facility they’re starting to look like they know something the other LP’s don’t.
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