1933 Industries (TGIF.C) new cultivation facility ramps up production

grow
08/20/2019

1933 Industries (TGIF.C) has started transferring its cannabis plants to its new cultivation facility in Las Vegas after completing system wide tests.

The new facility has ramped up 1933’s production since it opened, allowing the company to cultivate five times the amount of flower to meet the high demand required for their Alternative Medicine Association (AMA) line.

“As experienced cultivators, we understand that controlling the growing environment is the most important part of cultivating high-quality craft cannabis at scale, which is why we spent significant time, capital and management’s time to build a state-of-the-art indoor facility. We are investing in assets that will provide a continuous supply of the raw materials necessary to produce our premium cannabis products and improve our margins,” said Chris Rebentisch, CEO of 1933 Industries.

When the transfer of their cannabis plants is complete, they will vegetate for four weeks followed by the flower cycle for another eight. The next steps after that including harvesting, drying, packaging and third-party testing. The entire cycle takes 16 weeks.

In order to verify that the plants are receiving exact amounts of nutrients and moisture content, the facility was outfitted with drip automation in order to standardize cultivation techniques and implement efficient watering and feeding systems with waste reduction in mind.

cultivation
 Source: 1933 Industries investor deck
The story of the production facility began last year, when AMA completed a 10-year sale and lease back deal for their new production facility. They had announced it previously, but stories actually begin, at least in the case of companies, when money changes hands.

1933 funded the land purchase and facility construction without taking on any new debt.

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 anticipated production was 700-800 pounds per month, which AMA would use for its branded flower and concentrates, and sell in dispensaries throughout Nevada.

Next up is OG DNA Genetics (DNA), a cannabis genetics development firm, which will provide their expertise to AMA for the development of a consistent phenotype strain for a new line of co-branded flower and pre-rolls.

AMA

In other AMA news, 1933 signed a two-year management services agreement with California-based medicinal and recreational cannabis business licensee Green Spectrum Trading.

The agreement has 1933 providing general management and oversight in exchange for establishing a presence for AMA, effectively pushing 1933’s reach into California, the world’s largest cannabis market.

We wrote:

This is the same approach to vertical integration that made the company successful in Nevada. They controlled everything from cultivation and extraction down the line to sales and distribution, and they’re anticipating that the same seed-to-sale approach will allow them to duplicate their successes in California.

“Our oversight will ensure the consistency and quality of our premium branded portfolio and will leverage our already established distribution channels reaching dispensaries and retail outlets. This is an exciting opportunity that enables our company to capitalize on California’s growing market. We are pleased to partner with Green Spectrum and their cultivation expertise to quickly scale up operations,” said Rebentisch.

—Joseph Morton

Full Disclosure: 1933 Industries is an equity.guru marketing client.

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