1933 Industries (TGIF.C) is a well-managed cannabis company with a strong retail foothold in the State of Nevada, and it is now building distribution networks in California – with a total of 500 U.S. retail shops.
Further expansion targets include Oregon, Arizona and Canada.
1933 has a lot of moving parts, one of those is a Las Vegas cultivation facility.
As we reported three weeks ago, “construction on TGIF’s new 67,750 sq. ft. cannabis grow-op is about 75% completed and is on track to wrap-up next month. Plant clones are being readied for transfer into the new facility to ensure a smooth ramp up in cultivation.”
We’ve been waiting for an update on the cultivation facility.
That update just came in.
On February 6, 2019 TGIF reported that construction on its new cultivation facility in Las Vegas is nearing completion and awaiting electrical meter installation.
The new facility will house the Company’s subsidiary, Alternative Medicine Association’s (AMA) indoor cannabis cultivation.
AMA’s 12,160 sq. ft. building adjacent to the cultivation facility, will be utilized for cannabis production, processing and extraction – increasing the size of the current facility by 600%.
AMA is one of Nevada’s largest wholesalers of cannabis products, including branded flower, wholesale distillate for vape products, and a broad range of concentrates with distribution channels in place throughout Nevada.
The purpose-built 67,750 sq. ft. cultivation facility has been developed as a two-story building on 1.39 acres and zoned M-1 (Light Manufacturing) by the Clark County Zoning Department.
The structure includes:
- fully automated irrigation and fertigation system
- small vegetation/cultivation rooms for better crop management
- packaging areas
- supporting offices
- climate-controlled rooms catered to each phase of plant production
- benching system will maximize growing space
- advanced data tracking system
Fully operational, the newly constructed facility will deliver a substantial 10-fold infrastructure expansion and significantly increase AMA’s flower cultivation output.
What are we waiting for now?
“Meter installation, which may take several weeks.”
Once power is installed in the facility, final construction will conclude and state and city fire and health inspections will take place for the issuance of an occupancy permit. The occupancy permit is the final step in the process, allowing cultivation to begin in the new facility.
More than half of American adults have tried marijuana at least once in their lives. Nearly 55 million of them (22%) currently use it.
Assuming you are not going to set up an industrial grow-op in Nebraska (where it’s illegal and only 9% of the population smoke pot), the location of your legal-jurisdiction facility may seem relatively unimportant.
But that is not the case.
Nevada is the holy grail of U.S. cannabis markets.
Nevada’s 46 million annual tourists love weed.
The first year of legalized recreational pot raised nearly $70 million in tax revenue for Nevada, including $27.5 million for schools and $42.5 million for a state “rainy day” contingency fund.
Nevada has the potential to “become the world’s top canna-tourism destination”.
- Revenues of $12.6 million for the year
- Gross margins of 49%
- Total assets increased to $41 million
- Product offering expanded to over 120 SKU’s
- Retail footprint expanded to 500 Stores
“We have made small adjustments to the design that should result in complete climate control and considerable efficiencies in production,” stated 1933’s Master Grower, Mr. Tim Spencer. This will keep us competitive while raising the standard for high end cannabis in Nevada.”
Full Disclosure: 1933 Industries is an Equity Guru marketing client, and we own the stock.