1933 Industries Inc (CSE:TGIF) (OTCMKTS:TGIFF), the cannabis company, told investors Wednesday that its subsidiary Alternative Medicine Association is preparing to move into its new cannabis cultivation facility as its construction wraps up.
Grow equipment is expected to be installed at the Las Vegas cannabis producer’s new facility in Nevada three to four weeks after a temporary certificate of occupancy is issued by state regulators there at the end of April.
"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,” Chris Rebentisch, founder of Infused MFG, another 1933 subsidiary, said in a statement. “The increased capacity, coupled with efficiencies in production and economies of scale will undoubtedly improve yields and provide higher margins."
Moving forward, the Vancouver company intends to work with Nevada’s various local and state departments including Health & Safety, Air Quality, Business License and Fire Prevention, to receive final inspection approvals, which will trigger a certificate of occupancy.
The Company has also submitted requests to Nevada regulators to approve the change of location of AMA’s cultivation licenses to the new cultivation facility. The applications have been submitted and are under review, and are expected to be approved shortly after receipt of a certificate of occupancy.
After regulators sign off on the certificate of occupancy, AMA will focus on ramping up cultivation to achieve full production capacity at its new facility, which is divided into five different zones with 15 bloom rooms and four veg rooms.
READ: 1933 Industries shares rise on exclusive licensing agreement to sell cannabis products in Nevada
The cannabis plants will move into a new zone every 12 days during their life cycle, and after 90-120 days, the facility is expected to be utilized and operating at full capacity.
Headquartered in Vancouver, 1933 is a cannabis company with operations in the United States and Canada. Operating via three subsidiaries, 1933 owns licensed medical and recreational cannabis cultivation and production assets, hemp-based, CBD infused products, CBD extraction services and a specialized cannabis advisory firm.
In addition to its ownership of Infused MFG, the company owns 91% of Alternative Medicine Association and 100% of Spire Global Strategy.
1933 shares traded 2.9% higher at US$0.39 in morning trade Wednesday.
Contact Ellen Kelleher at [email protected]