Important timelines for 1933 Industries (CSE: TGIF)
1933 Industries (CSE: TGIF) provided some extremely important timelines last week. TGIF reported permanent power has been established by Nevada Energy to the new facility and a Temporary Certificate of Occupancy (TCO) should be received by the end of the month. Grow equipment is expected to be fully installed 3-4 weeks after the TCO has been received. Following that TGIF will work with local and state departments including, Health & Safety, Air Quality, Business License, and Fire Prevention to receive final inspection approvals. This will trigger a Certificate of Occupancy (CO). This process is estimated to take 3 weeks to obtain. Next will come approval from the County and State to approve change of location of the cultivation licenses to the new facility. The applications have been submitted and are under review and are expected to be approved shortly after receipt of a CO.
When these have been approved, operations will begin. The facility is segregated into 5 different zones with 15 bloom rooms and 4 veg rooms. The cannabis plants will move to a new zone every 12 days during their life cycle and after 90-120 days the facility is expected to be operating at full capacity at which point TGIF anticipates output of 700 - 800 pounds of flower per month.
Chris Rebentisch, USA COO for TGIF said, “The new facility is a vital component of the Company’s strategy, ensuring the consistent supply of cannabis flower and input material for our AMA branded concentrates and white label production. The increased capacity, coupled with efficiencies in production and economies of scale will undoubtedly improve yields and provide higher margins.”
Using my back of the napkin timeline, this means the new facility will start loading the pipeline around June and will reach full capacity in the fall. Starting in the third quarter we should see revenues start to build and reach a full capacity run rate in the fourth quarter. I believe this is an excellent time to be buying the stock in anticipation of the events described above. You don’t want to wait until full capacity is reached. Never forget, it wasn’t raining when Noah started building his ark.