Tinley Passes Three More Inspections and Provides Operational Update

Published: May 4, 2020

Tinley Passes Three More Inspections and Provides Operational Update

The Tinley Beverage Company Inc. has passed three additional inspections at its Phase 3 facility in Long Beach, California. The Company is also pleased provide an operational update.

Long Beach Facility Buildout

The Company is delighted to report that its intended Phase 3 cannabis bottling facility in Long Beach, California has successfully passed its health, mechanical and plumbing inspections. Further, the Company is working to complete the fire inspection, the last of the five functional inspections required by the City, this week. Passing fire inspection will enable the City to perform the confirmatory building inspection, which, upon successful completion, triggers issuance by the City of Long Beach of a Certificate of Occupancy. The Certificate of Occupancy allows the state cannabis licensing authorities to perform their final site visit and complete necessary ownership reviews. The Certificate of Occupancy issuance also enables the Company to schedule the bottling line manufacturer for final commissioning. The Company has successfully operated the bottling line on a test basis with non-infused liquid, however full commissioning requires a state manufacturing license given cannabis will be present on site. As previously disclosed, regulators have identified no further concerns about the license application and require authorization from the City of Long Beach before their inspection to activate the manufacturing license.

Operational Updates

The Company has enjoyed sales growth since the Q4/2019 Emerald Cup win and the delivery of non-infused products to BevMo and other mainstream retailers in Q1/2020. The Company anticipates that the addition of Shelf Life Distributing will further enhance sales of the Company’s infused products, while simultaneously reducing the Company’s storage, delivery, sales and other logistics costs. The Company is also no longer incurring monthly facility or storage costs at its Phase 2 facility in Desert Hot Springs as a result of the decommissioning that was completed there in Q1/2020.

As previously disclosed, the sale of all of the Company’s products – both infused and non-infused – have been deemed to be essential services under the “Stay at Home” orders in place in California. As a result, the Company’s products remain available for sale in dispensaries and grocery stores, as well as via home delivery. As previously disclosed, the USA’s largest national club/warehouse chain and one of the USA’s largest grocery chains – collectively representing approximately 3,000 stores across North America – have agreed to test Tinley’s non-infused beverage products at select Southern California locations. The Company has now completed the onboarding processes with these two chains and has accordingly become an approved vendor at both. COVID-19 has impacted these two retailers’ ability to schedule launch demonstrations, therefore the Company is exploring ways to launch conventionally without demonstrations at these stores if necessary. The Company’s non-infused products remain available at existing retailers in the meantime. The Company will provide updates on the names and locations of the launch locations as soon as launch dates are confirmed.

The Tinley Beverage Company (Santa Monica, California) created the Beckett’s™ Tonics and Beckett’s™ ’27 line of liquor-inspired, terpene-infused, non-alcoholic, cannabis-free beverages.

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