Tinley Beverage Co (CSE: TNY) is evidently blazing a path towards obtaining numerous co-packing clients at its Long Beach, California facility. The company announced this morning that it is working to finalize formulation and production solutions for twelve co-packing clients currently following the completion of its 20,000 square foot facility.
That news was included in a release this morning wherein the company identified it has increased its previously announced private placement from $1.0 million to $2.0 million following inbound institutional interest. The additional funds are said to be going towards augmenting the existing production batching and other equipment at the firms cannabis beverage co-packing facility.
In regards to the “other equipment” statement, the company elaborated that this is in reference to additional equipment that will enable additional product formats. While currently its production system allows for the use of bottles, further equipment is to be acquired that enable bottling in aluminum cans and minis.
Outside of expanding production formats, the funds are also said to be used for accelerating marketing efforts and overall expansion of Tinley and Beckett’s branded products within Canada and the US, along with general corporate purposes.
“The completion of our facility in Southern California enables us to devote our efforts to co-packing clients and other business development initiatives, designed to expand awareness of our co-packing services, our own infused and non-infused beverages, as well as of our company in general, both in California and throughout Canada.”Ted Zittell, Director
The financing saw a total of 4.48 million units of the company sold at a price of $0.45 each, for gross proceeds of just over $2.0 million. Each unit contains one common share and one common share purchase warrant, with warrants having an exercise price of $0.60 and an expiry of 3 years from the date of issuance.
The Tinley Beverage Co last traded at $0.42 on the CSE.
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