Tinley Completes Expansion of Phase 2 Facility and Produces
its Next-Generation Cannabis
Beverages
FOR IMMEDIATE RELEASE
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THIS NEWS RELEASE IS NOT FOR DISSEMINATION IN THE UNITED STATES OR
TO U.S. PERSONS.
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Toronto, Ontario
and Los Angeles, CA -- March 21, 2019 -- InvestorsHub NewsWire --
The Tinley Beverage Company Inc. (OTCQX:TNYBF)(CSE:TNY) (the "Company" or "Tinley") is
pleased to announce that it has completed its
planned
expansion
of
the bottling
facility in the Coachella Valley,
California (the "Phase 2 Facility")
to produce
Tinley's
great-tasting cannabis infused beverages.
This facility can now produce up to 3 million bottles per year,
and the Company
projects an average wholesale price of US$3-US$4/bottle for its single-serve
beverages and
US$15-US$17/bottle for its multi-serve
beverages. The next-generation versions
of Tinley's acclaimed
cocktail-inspired,
non-alcoholic
cannabis
beverages are intended to
go
into
production at this expanded facility
for delivery to
stores in April. These next-generation
products contain updated cannabis solubalization technology, clean
label claims and packaging that complies with new California
regulations.
The
Company is
also pleased to announce that it remains on schedule to complete the
build-out and installation of a state-of-the-art bottling line at
its flagship bottling plant (the "Phase 3
Facility") in Long Beach, California
by the end of the
second quarter of 2019. Tinley's flagship
Phase 3
Facility will have bottling
capacity of approximately 12
million
bottles per
year, with a space plan for up to
two additional bottling
lines to
accommodate additional beverage formats and capacity as
required. The Phase 3 Facility will also be home to Tinley's
purpose-built
beverage distribution facility, which will allow Tinley
to execute
a controlled DSD distribution model and
capture additional
economics from
this downstream
phase
of the value
chain. Upon licensing of the
Phase 3
Facility, Tinley intends to move
the bottling line
in the Phase 2 Facility
to one of its
priority expansion jurisdictions elsewhere in North America.
The Company
continues to caution, however, that the timing of full licensing
of the
Phase 3 facility remains
uncertain,
and that, like any consumer products company, anticipated revenue
is a function of consumer demand, not of the Company's production
capacity.
The
Company expects
to commence production
of
$200,000
worth
of
the
next-generation
Margarita and Moscow
Mule-inspired, non-alcoholic cannabis-infused
beverages. This quantity reflects
backordered and
indicated demand from distributors to date in
2019.
All beverages
produced in this run are expected to be shipped to stores during the month of
April.
The Company will then immediately focus on
the production of its
non-alcoholic
Tinley
'27
products, which are inspired by
Cinnamon Whisky,
Amaretto and Rum.
As previously
disclosed, California's cannabis
regulators began making requests in late 2018
for modifications to
the
Company's packaging to reflect
anticipated 2019 regulations.
As a result,
Tinley elected to pause production
to accommodate the upgrade and expansion of the Phase 2
Facility, while making the required packaging
modifications. During this time, Tinley also
implemented newer beverage technology
that allows for faster onset and offset
times,
visual
clarity
and a
greater full-flower
Sativa
effect.
Tinley
selected this
technology out of 13 candidate technology suppliers, and integrated
it with the Company's own technologies, methods and flavor
systems. The updated products are
vegan, gluten free, and contain as little as 1g of sugar per
serving.
These products were designed based on the significant amount of
intellectual property that Tinley accumulated via
the initial versions of these products. This IP includes
learnings on consumer
purchase and
consumption habits for various types of cannabis beverages, as well
as SOPs
for scaled cannabis beverage
production.
"We're excited to
be launching our next-generation products, with a significant
amount of dispensary demand already in hand as a result of
the
positive consumer
response we received for our initial products. We believe that Tinley
is the first-mover with
liquor-inspired, non-alcoholic
beverages that
contain cannabis 2.0 solubalization technology," said Rick Gillis,
President, Tinley Western
USA.
For additional investor information on Tinley Beverage Company,
please click here
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, non-alcoholic,
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
info@drinktinley.com
Twitter: @drinktinley
Instagram:
@tinleybeverage
www.drinktinley.com
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