CEO Chris Rebentisch said the company expects to clock C$18 million in total revenue for the 2020 fiscal year as it ramps up cultivation and manufacturing in California
Inc () (OTCQX:TGIFF) said Thursday that based on preliminary results, the company expects record revenue of C$5.2 million for its fiscal year fourth quarter.
In a statement, the Vancouver-based company said it will post a 13% rise in revenue in the fiscal fourth quarter totaling C$5.2 million, compared to C$4.6 million clocked in the previous quarter.
The company said it expects gross margin to “continue to improve” during the second half of fiscal 2020, as its infrastructure projects become fully operational and supply the raw materials for its branded goods products.
READ: 1933 Industries bolsters its portfolio in Nevada with the launch of blonde cannabis
"Our guidance report for the fourth quarter outlines steady growth across our subsidiaries. We expect $18 million in total revenues for our fiscal year, our largest reported revenue to date,” CEO Chris Rebentisch said in a statement.
“We have taken several measures to prepare and position the company for continued revenue growth throughout 2020. We have a robust cash position, which will be utilized to complete our large infrastructure projects, ramp up cultivation and manufacturing production in California and open new markets with an immediate focus in Arizona,” he added.
Rebentisch also noted that the company had established “a strong core foundation,” refocused on building brands.
“We have set a disciplined growth path to scale up our assets and production capacity in both Nevada and California where we see increased consumer demand for our AMA and Canna Hemp premium products," said Rebentisch.
1933 Industries recently completed the final phase of construction and received a permanent occupancy permit for Las Vegas, allowing its subsidiary Alternative Medicine Association to move into the facility and begin cultivation.
4Q operational highlights
The quarter saw the completion of the new cultivation facility in Las Vegas, which is expected to have its first harvest by December 2019, and to harvest every two weeks on a continuing basis.
The company said its original cultivation facility is being renovated so that it can be used as an extraction facility to increase raw material production for its AMA branded concentrates such as shatter, crumble, sugar, wax, budder, and distillate. The company has submitted layout plans to Clark County for making improvements on the existing building. The company said the project is on track to become operational by the end of 2019.
1993 Industries also said it is on track to open a customized hemp-extraction facility for the isolation of higher yield of CBD, CBN, CBG, CBC, and several other cannabinoids, including the ability to produce full spectrum and broad-spectrum oils, as well as isolates.
Separately, the company has executed an agreement with California-based Green Spectrum to undertake all initiatives linked to the establishment of a new cannabis manufacturing and extraction facility. In return, the company granted Green Spectrum a non-exclusive license to produce, manufacture, and sell the company's licensed products in California.
During the quarter, the company also inked a licensing agreement for the launch of Blonde, a high-end California brand making its debut in Nevada.
1993 Industries, based in Vancouver, owns licensed medical and adult-use cannabis cultivation and production assets, proprietary hemp-based, CBD infused branded products, CBD extraction services and a specialized cannabis advisory firm.
Vertically integrated 1933 Industries owns 91% of Alternative Medicine Association which is based in Nevada and fully owns both Infused MFG and Spire Global Strategy, located in Vancouver.
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