The harvest will be utilized for AMA premium packaged flower, pre-rolls and Blonde cannabis products
1933 Industries Inc () (OTCMKTS:TGIFF) said Friday that its first harvest of commercial cannabis from California is underway and it has also started distributing California-compliant full spectrum Canna Hemp products to dispensaries in the Golden State.
In a statement, the company said the harvest marks the California debut of AMA and Blonde cannabis products.
Following the news, shares rose 12% to C$0.19 apiece in Canada and 10% to US$0.14 in New York.
1993 Industries, based in Chilliwack, British Columbia, has a 20,000-square feet cultivation, extraction, manufacturing and distribution facility in the Los Angeles area, and has harvested its first cannabis crop this week. The harvest will go into its Alternative Medicine Association (AMA) brand, as well as its licensing partner, luxury brand Blonde cannabis, with products earmarked for dispensaries for the first time outside Nevada.
READ: 1933 Industries expects growth in vape sales in 2020 as it posts fiscal 1Q numbers
“With crops of Mimosa and SFV OG, the harvest will be utilized for AMA premium packaged flower, pre-rolls and Blonde products,” said the company.
Over three weeks, the harvested plants will enter a drying and curing process and lab testing with product expected to be available in early-March.
Full spectrum Canna Hemp CBD products
Separately, the company is locally manufacturing its CBD wellness line containing California-compliant full spectrum CBD for direct distribution to local dispensaries. The initial run of 30,000 units of full-spectrum CBD Canna Hemp products passed state compliance testing, said the company, and will be delivered to dispensaries this week.
The company said that the initial products available included, Canna Hemp elixirs, vape pens and cartridges, and Canna Hemp X elixirs, with Canna Hemp relief creams available later in the month.
In a company update, CEO Chris Rebentisch said the Vancouver, British Columbia company had two capital projects completed.
“We are on track to deliver two key infrastructure projects over the next several months that will allow us to fully control our input materials, lower our costs of production, increase our revenues and margins with profitability as our key priority in fiscal 2021 and beyond,” said Rebentisch.
“We are continuing to achieve further efficiencies across our operations, managing our cash position conservatively and controlling expenses to endure current market conditions,” he added.
Nevada cultivation, THC extraction expansion
Rebentisch also said the company was on schedule to harvest commercial crops every 14-18 days from the Las Vegas cultivation facility starting in March.
“We have five harvest zones with plants growing in various stages for four of the five zones. We are pleased to report that the biomass from the first harvest from this facility has been utilized to produce our line of high value concentrates for the Nevada market and leverage one of most exciting verticals within the cannabis industry,” said Rebentisch.
On January 27, 1933 Industries submitted a third round of comments to the Clark County Building Department for the expansion of its THC extraction facility. A construction blueprint will be shared once the building permit is awarded. The company said it has prepped for electrical upgrades to the facility.
The 1993 Industries boss said although a peer review of the extraction equipment for the GMP hemp extraction lab has not been completed, the company is still on track to deliver the review by the middle of the year.
“We continue to make progress in building design and equipment engineering. The distillation system has been delivered to the facility in Las Vegas,” said Rebentisch.
Rebentisch emphasized the company’s focus on “strengthening” its Nevada operations, the growth of its California operations and generating new revenue from the sale of its line of CBD Canna Hemp products across “attractive US cannabis markets.”
A revamped e-commerce website for Canna Hemp will be launched on Friday with a direct to consumer strategy, said the company.
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