Tinley Beverage Co (CSE: TNY) announced this morning that it has confirmed with the state of California that all state regulatory requirements for the issuance of a cannabis manufacturing license have been met, pending a municipal approval. The remaining hurdle to acquire its manufacturing license lays in receiving municipal approval from the City of Long Beach, which is expected shortly.
As of this mornings news release, Tinley has acknowledged that the only remaining item to be completed to satisfy the City of Long Beach is an electrical inspection, after which transformer and meter activation can commence. The municipality had previously requested certain tenant improvements occur at the site prior to inspection, largely related to the electrical system powering Tinley’s bottling facility. With the inspection scheduled for early December, that final hurdle will soon be completed, enabling the firm to receive its cannabis manufacturing license.
Upon grant of its license, the issuer will conduct the final commissioning of its bottling line before entering production of its cannabis infused beverages. The line itself has already conducted pre-commissioning testing with non-cannabis infused variants of Tinley’s product line.
While the bottling line is expected to be running in the near term, Tinley is already looking towards capacity expansion at its facility as a result of discussions with potential manufacturing clients. Three separate prospective clients have indicated a strong desire to have their product sold in aluminum cans rather than bottles. As a result, upon signing, Tinley has indicated that it will install a canning line at its Long Beach, California facility to suit the needs of its clientele. Production capacity estimates were not provided.
Finally, Tinley Beverage has closed a second tranche of its recently announced financing. The financing, which was originally intended to be only $500,000, has had a second tranche as a result of strong inbound demand from investors. A second tranche of $850,000 has closed, bringing the financing to $1.35 million. Units of the financing were sold at a price of $0.40, which contained one common share and one common share purchase warrant. Each warrant is exercisable at a price of $0.60 for a period of 36 months following closing.
Tinley Beverage last traded at $0.41 on the CSE.
FULL DISCLOSURE: Tinley Beverage is a client of Canacom Group, the parent company of The Deep Dive. The author has been compensated to cover Tinley Beverage on The Deep Dive, with The Deep Dive having full editorial control. Not a recommendation to buy or sell. Always do additional research and consult a professional before purchasing a security.
