1933 Industries Inc (OTCMKTS:TGIFF) Reports Revenues Of $3.1 Million CAD In Q2 2020
1933 Industries Inc (OTCMKTS:TGIFF) has reported revenues of $3.1 million CAD in Q2 2020. It is a decline of 20% when compared to the previous quarter and on the backdrop of transition from the old facility to the new cultivation facility.
Completes two capital projects
1933 Industries has completed two capital projects in Q2 2020. It has completed the new cultivation facility in Las Vegas. AMA (Alternative Medicines Association), a subsidiary of 1933 Industries, has commenced the production in the newly established Las Vegas cultivation facility.
As part of a management accord signed with Green Spectrum Trading Inc, 1933 Industries has expanded the production and cultivation operation to California to support licensing partners and consumer packaged goods. The projects, which spans two quarters, require additional resources and extensive capital spending.
The company has established local manufacturing to produce the Canna Hemp line of cannabidiol products in compliance with California standards. 1933 Industries has unveiled THC concentrates under the AMA brand.
Attracts premium brands in Nevada
1933 Industries has included The Pantry Company, an edible brand, and Bloom, a premier cannabis brand in its portfolio. It also attracted premium brands in Nevada. The company has utilized some resources to bring infrastructure projects in California and Nevada online. As of Q2, 2020, the company maintains a cash balance of $9.1 million CAD for ongoing operations. The company has realized a negative margin of $776,000 because of absorbing the cost to maintain shelf space. It has incurred additional expenses for biomass procurement from third parties and overheads of the cultivation facility.
1933 Industries has reported the first harvest in Q2 from the new facility in Nevada. It will continue the future harvests from this Nevada facility. The company expects to reduce the above-mentioned expenses going forward and produces sufficient biomass from the harvests. It will use the biomass as input to the products.
1933 Industries focuses on reducing nonessential costs. It maintains cash reserves and boosts sales growth. The company also strengthens the brands as well as the distribution nationwide. Despite receiving permits, the construction of THC Lab will not move ahead as planned because of the uncertainty created by the coronavirus pandemic. It will enhance the production of THC concentrates from the existing facility.
Published at Fri, 17 Apr 2020 12:21:32 +0000