1933 Industries (TGIF.C) has kept their January 7th promise to get the first harvest of their California operation in full swing, while getting their Canna Hemp products to dispensaries across the state.
It may not seem like it at first glance, but today’s announcement of the first cannabis harvest in California is part of CEO Chris Rebentisch’s larger plan for the cannabis industry.
Here’s what Rebentisch had to say:
“While the landscape of the entire cannabis sector has changed dramatically and continues to be under pressure, we would like to reassure our investors that the current share price does not reflect our business operations as we continue to execute our strategy. With two capital projects now completed, we are on track to deliver two key infrastructure projects over the next several months that will allow us to fully control our input materials, lower our costs of production, increase our revenues and margins with profitability as our key priority in fiscal 2021 and beyond. We are continuing to achieve further efficiencies across our operations, managing our cash position conservatively and controlling expenses to endure current market conditions.”
Let’s have a look at what Rebentisch is talking about.
Compared to most of the other charts in the cannabis industry nowadays, 1933 Industries’ shows a lot of promise in a sea of suck.
It’s good to see hard work paying off. The promise of riches to be found in the cannabis space is probably over. Now the key to success is rebuilt trust. Make a promise and keep it. Do it again and again. What’s important to remember and reiterate right now when investor confidence is down in the cannabis space is that this company has set benchmarks—specifically that they would have their first harvest within a few weeks of the opening of February—and kept them. There’s no duplicity and no missed projections here. They’re exactly where they said they would be, and there’s no reason to believe that they won’t make good on the rest of their promises.
Shortly after the company finished the final coat of paint on their 20,000 square foot Los Angeles-based cultivation, extraction, manufacturing and distributing facility, they got to work on harvesting their first cannabis crop. The crop is going to be split between their brand the Alternative Medicine Association (AMA), and their licensing partner and luxury brand Blonde cannabis, with products intended for dispensaries outside of Nevada.
The company anticipates being able to harvest commercial crops every 14 to 18 days from their Las Vegas cultivation facility beginning in March. They have five harvest zones with plants in various stages of development for four of the five zones, and they have used the biomass from the first harvest to produce their first round of high value concentrates, now found on shelves in Nevada.
They have established local manufacturing for their CBD wellness line for distribution to local dispensaries, and report that their initial run of 30,000 units of Canna Hemp passed required state compliance testing and should be on dispensary shelves within the week.
That should be enough to inspire some confidence.
Other product offerings will include:
- relief and recovery creams,
- vape pens and cartridges
The company also submitted a third round of comments to the Clark County Building Department for their THC extraction facility expansion, and a construction schedule will be the next step once the building permit is awarded. In the meantime, they’re at work on electrical upgrades to the facility.
“Although the peer review of the customized extraction equipment for the GMP hemp extraction lab has not been completed to date, we are still on track to deliver this project mid-year. We continue to make progress in building design and equipment engineering. We report that the distillation system has been delivered to the facility in Las Vegas. All milestones will be reported until the final completion of this project,” Rebentisch said.
You can’t go wrong with a company that promises to report on its milestones, and then does it.
Full disclosure: 1933 Industries is an equity.guru marketing client.