LEASES 20,000 SQUARE FOOT FACILITY FOR CANNABIS BEVERAGE PRODUCTION
The Tinley Beverage Company Inc. (TNY.C) has entered into a lease agreement for a 20,000-square-foot facility in Long Beach, Calif., for cannabis beverage production. The company's temporary facility in Riverside county, California, has successfully completed all remaining inspections required for cannabis operations, and it has accordingly received a certificate of occupancy.
20,000-square-foot manufacturing facility on 45,000-square-foot parcel
The company has entered into a lease agreement for a 20,000-square-foot structure in Long Beach, Calif. The facility is situated on 45,000 square feet of land approximately 16 miles from downtown Los Angeles.
The company intends to retrofit the existing structure to install batching and bottling equipment that is uniquely designed for the needs of cannabis drinks. This equipment will accommodate the solubilization technology and processes that Tinley uses for its cannabis- and terpene-infused, liquor-style beverages. The bottling line will also be designed for a variety of bottle, label and closure styles to accommodate future products as well as enable co-packing services for third party brands that wish to build cannabis-infused versions of their products. The equipment will enable both carbonated and non-carbonated beverages, as well as those that contain perishable ingredients and that require clean-label claims.
Due to the central location of the property, Tinley intends to use a portion of the building to build a permitted cannabis distributor. This distributor will be equipped to cater to the unique needs of beverage products including refrigeration and large-format packaging. The Company intends to operate the distributor in cooperation with existing local distributors and operators. The Company will also build a beverage R&D and internal testing center within the facility to enable continuous product innovation and quality assurance. The Company believes that this lineup of services will enable it to maintain control over all aspects of its supply chain, provide investors with exposure to a broader portfolio of beverage products and offer an end-to-end beverage development solution for third-party brands.
Temporary Facility Competes Inspections and Receives Certificate of Occupancy
The Company is pleased to announce that its temporary facility in Riverside County, California has successfully completed all remaining municipal permitting, and it has accordingly been awarded a Certificate of Occupancy for cannabis cultivation and manufacturing operations. As a result, Tinley has consummated its previously-negotiated binding manufacturing agreement with the facility operator.
The facility operator has submitted its Certificate of Occupancy and other materials to the California Department of Public Health's ("CDPH") Manufactured Cannabis Safety Branch ("MCSB") for issuance of a temporary manufacturing license. Upon receipt of this temporary license, the Company intends to go into immediate production, and believes the initial batches will take 2-3 weeks to complete at that time. Initial products include the Tinley Margarita and the Tinley '27 Coconut Rum.
After production commences, the facility operator will submit its Annual License application through CDPH's online licensing system, the Manufactured Cannabis Licensing System ("MCLS"). The facility operator and Tinley will remain in compliance with local regulations, and once the application is confirmed by MCLS, an Annual License will be issued.
Tinley intends to produce products at its temporary facility until its Long Beach facility is operational.
"We've secured a long-term home for a leading-edge, beverage manufacturing and innovation center in Southern California, the heart of the USA's largest mainstream beverage market, as well as North America's largest cannabis market," said Jeff Maser, CEO of the Company. "The resources we are assembling in Long Beach will enable our team to offer a range of value-added beverage services using a time-tested business model that they've successfully deployed at major beverage companies and co-packers--now with a cannabis angle. At the same time, we've passed the final, major hurdle to begin production in compliance with the new MARCUSA requirements, creating a doubly-exciting new phase in the Company's growth," he added.
About The Tinley Beverage Company Inc.
The Tinley Beverage Company (Toronto, Canada) has developed a line of cannabis-infused beverages for use in jurisdictions throughout North America, where such products are permitted. It is under contract with The Tinley Collective, a California co-operative corporation that is engaged in cannabis procurement and distribution within California's medical cannabis system. Tinley's wholly owned subsidiary, Hemplify Inc. (Santa Monica, Calif.), manufactures the Hemplify and Tinley's Tonics line of products.