Tinley Engages First Canadian Capital for IR and Enhances Production Capacity
THIS NEWS RELEASE IS NOT FOR DISSEMINATION IN THE UNITED STATES OR TO U.S. PERSONS
SANTA MONICA, Calif., Jan. 22, 2019 (GLOBE NEWSWIRE) -- The Tinley Beverage Company Inc. (the “Company" or "Tinley") is pleased to announce that it has engaged First Canadian Capital for investor relations. It is also pleased to announce that it has purchased equipment to increase production capacity at its current facility.
Engagement of Veteran Investor Relations firm First Canadian Capital
The Company has entered into a consulting agreement (the “Agreement”) with leading investor relations firm, First Canadian Capital Corp. (“FCC”), pursuant to which FCC will provide Tinley with consulting, investor relations and strategic corporate communications services. Tinley anticipates that FCC will assist with increasing awareness of the Corporation within the cannabis industry and public markets.
Celebrating its 22nd year, Toronto-based First Canadian Capital develops strategic platforms for North American corporations that are utilized to gain exposure to and recognition within the capital markets. First Canadian’s core competencies are centred around identifying quality assets and undervalued companies with high growth potential.
Under the terms of the Agreement, Tinley will pay FCC $6,000 per month for a period of six months, renewable for up to 25 months. In addition, FCC will receive options to purchase 20,000 shares of the Company at an exercise price of $0.58(tbc) (“Options”) for each month of service. The Company has granted 500,000 Options, representing 25 months of service, which shall vest in six-month tranches of 120,000 Options per 6-month tranche, contingent upon continued service during these periods. The Options shall be granted in accordance with the policies of the Canadian Securities Exchange and Tinley’s Stock Option Plan.
“First Canadian Capital is very pleased to be working with Tinley,” said George Aizpurua, Vice President at FCC. “They have attracted a world-class team, and they are building best-of-breed manufacturing and distribution infrastructure – as well as some of the most delicious products – in one of the cannabis industry’s fastest-growing sub-segments,” Aizpurura continued.
Operational and Product Enhancements
Tinley has expanded the engagement of its Long Beach engineering firm to significantly increase bottling capacity at its previously-disclosed, new manufacturer’s facility in the Coachella Valley. The expanded infrastructure is designed to increase production capacity to 250,000 bottles per month, at lower per-unit production costs. The infrastructure will remain in place until the Company’s Long Beach facility is operational. The new equipment is designed to be rapidly shipped and re-deployed to a facility in Canada, Nevada or any of the Company’s other target expansion markets, upon opening of the Long Beach facility. As a result, this capability will allow the Company to offer licensed partners in these new markets a rapid start-up and launch of efficient bottling operations, incorporating the multi-phased approach that the Company has employed in California. The expanded line is expected to be operational in the Coachella Valley facility by late February, and the Company’s existing bottling equipment remains available for use in the meantime.
The Company remains confident that its Long Beach facility will have its full functionality in place by Q2 of this year. There is no guarantee of when its state licensing will be in place, however the Company believes its current manufacturer’s Coachella Valley facility will have more than sufficient capacity for its products and those of its prospective co-packing clients until such licensing is complete.
The Company is productively exploiting the opportunity created by the previously-disclosed regulatory changes regarding labelling requirements, to apply the water solubility technology used for the higher-dose Tinley ’27 hard liquor-style product formulations to its acclaimed single-serve Margarita and Moscow Mule formulations. This technology offers industry-leading onset and offset times, as well as product clarity. In response to customer feedback on the previous 10mg versions, the updated product formulations now deliver a lighter, 5mg micro-dose per serving. A significant quantity of Margarita and Moscow Mule products was purchased by three distributors during Q3 and Q4 of 2018 on a binding, non-returnable basis. As a result, the Company expects to provide the updated products as replacements in Q1 2019, as well as ship additional product ordered during and subsequent to those quarters, such that it can recognize such revenue accordingly.
About The Tinley Beverage Company
The Tinley Beverage Company (Santa Monica, California) created the Tinley™ Tonics, Tinley™ ‘27 and Hemplify® line of cannabis and hemp CBD beverages. The Hemplify® CBD beverages are available in mainstream stores in California, while the Tinley™ Tonics and Tinley™ ’27 line of liquor-inspired, alcohol-free, cannabis-infused beverages are available in dispensaries throughout the State. The Company is also building a 20,000 square foot cannabis beverage manufacturing and distribution facility in Long Beach, California.
Forward-Looking Statements
NEITHER THE CANADIAN SECURITIES EXCHANGE NOR ITS REGULATIONS SERVICES PROVIDER HAVE REVIEWED OR ACCEPT RESPONSIBILITY FOR THE ADEQUACY OR ACCURACY OF THIS RELEASE.
This press release contains or refers to forward-looking information and is based on current expectations that involve a number of business risks and uncertainties. Factors that could cause actual results to differ materially from any forward-looking statement include, but are not limited to, delays in obtaining or failures to obtain required governmental, environmental or other project approvals, political risks, uncertainties relating to the availability and costs of financing needed in the future, changes in equity markets, inflation, changes in exchange rates, fluctuations in commodity prices, delays in the development of projects and the other risks involved in the mineral exploration and development industry. Forward-looking statements are subject to significant risks and uncertainties, and other factors that could cause actual results to differ materially from expected results. Readers should not place undue reliance on forward-looking statements. These forward-looking statements are made as of the date hereof and the Company assumes no responsibility to update them or revise them to reflect new events or circumstances other than as required by law.
Products, formulations and timelines outlined herein are subject to change at any time. All figures CAD unless otherwise indicated.
For further information on The Tinley Beverage Company, please contact:
The Tinley Beverage Company Inc.
3435 Ocean Park Blvd. #107
Santa Monica, CA 90405
(310) 507-9146
Twitter: @drinktinley
Instagram: @tinleybeverage
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