The Agreement Launches the Company as a Multi-State Operator and Establishes Local Manufacturing for Both its AMA and Canna Hemp™ Portfolio of Brands
VANCOUVER, Aug. 15, 2019 /CNW/ - 1933 Industries Inc. (the "Company" or "1933 Industries") (CSE: TGIF) (OTCQX: TGIFF), a vertically integrated cannabis consumer packaged goods company, is pleased to announce that it has signed a Management Services Agreement ("Agreement") to provide operational and accounting services, general management and oversight to Green Spectrum Trading, Inc. ("Green Spectrum"), a medicinal and recreational cannabis business licensee in the State of California, for a two-year term. Green Spectrum operates as a licensed cannabis cultivator, manufacturer and distributor, and holds a pending home delivery business license. The Agreement serves to establish a local presence for the Company's Alternative Medicine Association (AMA) branded products outside of Nevada, and expands the footprint of its CBD wellness line.
Deep Manufacturing and Distribution Experience Enables Agreement
Under the terms of the Agreement, the Company will provide the services necessary for the operation of Green Spectrum's business, including oversight over the general management of the business and operations, product manufacturing, distribution efforts, staffing, sales, marketing, accounting, and compliance. The Company will utilize its expertise in manufacturing and building distribution networks to undertake all initiatives relating to the establishment of a new cannabis manufacturing and extraction facility, inclusive of funding building and tenant improvements, providing start-up costs for the acquisition and installation of equipment, rent, labor, utilities, marketing, etc. The Company grants Green Spectrum a non-exclusive right and license during the term of the Agreement to use the Company's licensed marks to produce, manufacture, market and sell the Company's licensed products within California.
California's Industry Potential
According to Statista, the California cannabis industry is projected to generate over $6.59 billion in sales by 2025. By partnering with Green Spectrum, the Company will have the advantage of working with an established cultivator to build manufacturing and expand its distribution channels for its brands with the goals of becoming a statewide leader in the industry. According to Statista, California's cannabis industry is larger than Arizona, Colorado, Oregon, Nevada and Washington State combined and larger than the Canadian cannabis market.
"California is already positioned to become one of the largest cannabis markets in the world and setting up a local operation has been a key priority for us. Manufacturing our THC AMA branded line of concentrates and CBD Infused Canna Hemp™ portfolio of wellness products in the state enables us to reach markets across the most populous hubs and establishes us as a multi-state operator with a turnkey model that can be exported to other states", commented Mr. Chris Rebentisch, CEO.
He added, "We are taking the same vertically integrated approach that we have successfully built in Nevada to the California market, where we will control cultivation, extraction, product manufacturing, branding, sales and distribution. 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."
Mike Mirolla, CEO of Green Spectrum remarked, "We selected 1933 Industries because of their proven track record in Nevada, their deep understanding of the cannabis markets and their considerable expertise in manufacturing, distribution and brand development. The partnership provides the ideal opportunity for both companies to leverage each other's strengths as we move forward in establishing manufacturing and distribution in California."
The Company expects that the new manufacturing facility in California will be operational by end of October, 2019.
About 1933 Industries Inc.
1933 Industries Inc. is a vertically integrated, brand-focused cannabis company with operations in the United States and Canada. Operating through two subsidiary companies, the Company owns leading cannabis brands as well as licensed cannabis cultivation, extraction, processing and manufacturing assets. With the goal of delivering natural wellness, our award-winning proprietary portfolio of brands include: AMA flower and AMA concentrates, CBD-infused Canna Hemp™, Canna Hemp X™, and Canna Fused™. Partners under licensing agreements include Denver Dab Co., Birdhouse Skateboards™, Gotti's Gold and Kurupt Moonrocks. The Company owns 91% of Alternative Medicine Association, LC (AMA), and 100% of Infused MFG.
About Canna Hemp™
Canna Hemp™ CBD Relief Cream was named "Best Topical" by Leafy's Best in State: The Top State Specific Products and Experiences of 2018.
About Canna HempX™
Canna Hemp X™ was named "Best Topicals for Pain" by Herb's Guide to the Best Cannabis Products on the Planet. Canna Hemp X™ is a CBD sports recovery cream for athletes, bridging the gap between recovery and top performance.
Neither the Canadian Securities Exchange nor its Regulation Services Provider (as that term is defined in the policies of the Canadian Securities Exchange) accepts responsibility for the adequacy or accuracy of this release.
Notice regarding Forward Looking Statements: This news release contains forward-looking statements. The use of any of the words "anticipate", "continue", "estimate", "expect", "may", "will", "project", "should", "believe" and similar expressions are intended to identify forward-looking statements. Although the Company believes that the expectations and assumptions on which the forward-looking statements are based are reasonable, undue reliance should not be placed on the forward-looking statements because the Company can give no assurance that they will prove to be correct. Since forward-looking statements address future events and conditions, by their very nature they involve inherent risks and uncertainties. These statements speak only as of the date of this news release. Actual results could differ materially from those currently anticipated due to a number of factors and risks including various risk factors discussed in the Company's disclosure documents, which can be found under the Company's profile on www.sedar.com. 1933 Industries undertakes no obligation to update publicly or revise any forward-looking information, whether as a result of new information, future events or otherwise, except as required by law.
SOURCE 1933 Industries Inc.
For further information: Alexia Helgason, Corporate Communications and IR Director, 604-674-4756 (ext. 1), [email protected]; Chris Rebentisch, CEO & Director, 604-674-4756 (ext. 1)