1933 Industries launching as multi-state operator (CSE: TGIF)
1933 Industries (CSE: TGIF) is pleased to announce that it has signed a Management Services Agreement that launches it as a Multi-State Operator (MSO) and sets up manufacturing for both the AMA and Canna Hemp™ brands in California.
Under the agreement, TGIF will provide operational and accounting services, general management and oversight to for a two-year term to Green Spectrum Trading, Inc., a medicinal and recreational cannabis business licensee in the State of California. 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.
Under the Agreement, TGIF 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. TGIF 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, and marketing. TGIF grants Green Spectrum a non-exclusive right and license during the term of the Agreement to use TGIF’s licensed marks to produce, manufacture, market and sell TGIF’s licensed products within California that is larger than Arizona, Colorado, Oregon, Nevada and Washington State combined and larger than the Canadian cannabis market according to Statista that also projects California will generate over $6.59 billion in cannabis and related product sales by 2025.
Chris Rebentish, CEO of TGIf says, “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.”
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.”
I see this as an important achievement in TGIF’s expansion plans. I will reach out to Chris Rebentish this week to gain some insight to the timelines involved. In the meantime, with TGIF’s stock price having corrected along with the market in general, I have no hesitation in buying the shares at this level.