1933 Industries Inc () (OTCMKTS:TGIF) is a cannabis company with operations in the United States and Canada. Through its two main subsidiaries, 1933 owns licensed medical and recreational cannabis cultivation and production assets, hemp-based, CBD infused products, CBD extraction services and specialized cannabis advisory services.
The “1933” in the company name is a nod to the year when the prohibition of alcohol ended in the US. Today, 1933 Industries aims to capitalize on opportunities that have come as a result of the end of cannabis prohibition in Canada and industry legalization in a collection of US states.
1933 Industries has two main subsidiaries. The first is Alternative Medicine Association LLC, a licensed medical and adult-use cannabis cultivation and extraction subsidiary that produces its own line of products while also manufacturing third-party brands. AMA’s products include concentrates such as Cake Batter, Crumble and Sugar; a vape pen sold with distillate oil; and several flower strains.
The other main subsidiary is Infused MFG, a Las Vegas-based manufacturer of hemp-based, cannabidiol (CBD) products. Infused MFG’s product line includes topicals, creams, vapes, elixirs, capsules, dabs, lip balms and pre and post-workout recovery sports products. The subsidiary manufacturers its products under its Canna Hemp brand, which utilizes the power of hemp and CBD to bring natural wellness.
At something of a critical time for the firm, 1933’s chief executive Paul Rosen has joined its board of directors, having also been involved with the company beforehand as not only CEO but also a strategic investor and an advisor.
Rosen is no stranger to the cannabis industry, having previously co-founded and served as CEO of Capital Corp that was later rebranded to The Cronos Group () (). Rosen also currently serves as the executive chairman of Global Go, a consultancy focused on the global regulated cannabis industry and is a co-founder and chairman of Pantry Co, a cannabis-focused start-up in the functional food market.
The CEO is also not the first new arrival to the firm, with president Eugene Ruiz joining the firm in June followed by new chief financial officer Tricia Kaelin in July.
Rosen’s elevation to the board also comes amid a period of expansion for 1933, which announced in August the launch of a new line of extra strength CBD products to its extensive wellness portfolio.
The new product line, named Canna Hemp PLUS, has been developed for consumers who want to experience the added benefits of increased CBD at competitive prices from a reliable and trusted brand. With double the amount of CBD, the company said the PLUS line is aimed at offering “competitively-priced products” with some of the “highest amounts of CBD found today in the market”.
In addition to the PLUS line, the company has also launched a line of products made with organic hemp seed oil available via online marketplaces such as Amazon.com and Walmart.com and via its direct-to-consumer e-commerce website, cannahemp.com.
The company has also moved into the high-value cannabis flower market in Nevada, adding a premium smokable flower and pre-roll joints to its portfolio of brands in July.
Aside from its own brands, the company is also making headway with its partnerships with other firms, inking a deal in early August with premium cannabis brand Five Star Extracts to produce its products exclusively in Nevada.
In terms of numbers, for its fiscal third quarter ended April 30, 2020, 1933 Industries clocked up revenue of C$2.6 million, a 17% decrease from the C$3.1 million netted in the previous quarter.
Operating expenses were $5.6 million, while the company posted a net loss of C$4.7 million, or C$0.02 per share. The adjusted EBITDA, or earnings before interest, taxes, depreciation, and amortization loss was C$3 million, a 45% improvement from the C$4.8 million loss in the fiscal second quarter.
The company’s balance sheet had C$4.9 million in cash and total assets worth C$54.6 million at the end of the quarter.
More partnerships with other cannabis firms Brands added to portfolio Sales expansion of existing productsCommenting on his appointment to 1933's board of directors, Paul Rosen said his appointment as CEO “has helped accelerate positive change at 1933 Industries”.
“During the last two months, we have shifted our strategy, focussing on our core market in Nevada and on our best-in-class cultivation infrastructure, making meaningful improvements that are already being realized. As a member of the Board of Directors, I will have the opportunity to further assist in strengthening the Company’s performance, while continuing to demonstrate my long-term commitment to the success of 1933 Industries as we grow our business into a profitable and respected entity”, Rosen added.