Earlier this month, we highlighted 1933 Industries Inc. (CSE: TGIF) (OTCQX: TGIFF) as an attractive play on the US market. Following a major development in California, we are even more bullish on the opportunity and this is a company that our readers need to be aware of.
During the last year, 1933 Industries has been nothing short of an execution story and the management team has done a fantastic job at expanding the business. The company is highly focused on some of the most attractive verticals of the cannabis industry and has leverage to a number of the most exciting growth markets in the US.
2020 has been a tough year for the US cannabis company and the recent pullback has caught our attention. Although 1933 Industries has substantially improved its value proposition, the shares have been trading lower with the cannabis sector and this is an opportunity that is flying under the radar.
A California Growth and Execution Story
Last week, 1933 Industries reported a major milestone and started to harvest its first cannabis crop in California. This represented a significant accomplishment and the company will use the cannabis for both its proprietary brand, Alternative Medicine Association (AMA) as well as for its licensing partner, Blonde Cannabis. Specifically, the harvest will be used for AMA premium packaged flower, pre-rolls and Blonde products. We are favorable on the amount of value that can be created through the sales of these products and believe that this is just the start of something substantial in California.
Last year, 1933 Industries became highly focused on the California market and we are impressed with how the management team was able to execute on this opportunity. The company is working out of a state-of-the-art facility that is 20,000 sq. ft. that has space for cultivation, extraction, manufacturing, and distribution.
In early March, 1933 Industries expects to start selling AMA and Blonde products in California and we will keep an eye on how these products gain traction. California is the world’s largest cannabis market and we are favorable on the leverage that 1933 Industries has to it. Over the next year, we expect to see the company report strong growth and for the California asset to play a key role in the growth of the business.
With regards to the California market, 1933 Industries is not solely focused on the tetrahydrocannabinol (THC) opportunity. The company has established local manufacturing for Canna Hemp, its proprietary CBD wellness line. 1933 Industries plans to sell Canna Hemp products to dispensaries and we expect this vertical to be an area of growth for the business. The company should make a splash in this market after the initial run of 30,000 units of full spectrum CBD Canna Hemp™ products passed mandatory state compliance testing.
A