Tinley Beverage Company Inc. (OTCQX:TNYBF)(CSE:TNY) $TNYBF
(the "Company" or "Tinley") is pleased to announce that it has completed its planned expansion of the bottling facility in the Coachella Valley, California (the "Phase 2 Facility") to produce Tinley's great-tasting cannabis infused beverages. This facility can now produce up to 3 million bottles per year, and the Company projects an average wholesale price of US$3-US$4/bottle for its single-serve beverages and US$15-US$17/bottle for its multi-serve beverages. The next-generation versions of Tinley's acclaimed cocktail-inspired, non-alcoholic cannabis beverages are intended to go into production at this expanded facility for delivery to stores in April. These next-generation products contain updated cannabis solubalization technology, clean label claims and packaging that complies with new California regulations.
The Company is also pleased to announce that it remains on schedule to complete the build-out and installation of a state-of-the-art bottling line at its flagship bottling plant (the "Phase 3 Facility") in Long Beach, California by the end of the second quarter of 2019. Tinley's flagship Phase 3 Facility will have bottling capacity of approximately 12 million bottles per year, with a space plan for up to two additional bottling lines to accommodate additional beverage formats and capacity as required. The Phase 3 Facility will also be home to Tinley's purpose-built beverage distribution facility, which will allow Tinley to execute a controlled DSD distribution model and capture additional economics from this downstream phase of the value chain. Upon licensing of the Phase 3 Facility, Tinley intends to move the bottling line in the Phase 2 Facility to one of its priority expansion jurisdictions elsewhere in North America. The Company continues to caution, however, that the timing of full licensing of the Phase 3 facility remains uncertain, and that, like any consumer products company, anticipated revenue is a function of consumer demand, not of the Company's production capacity.
