Company Update. Exciting Stuff!Friends, Some exciting developments on the taxation and distribution fronts: Long Beach Slashes Cannabis Taxes - Now Among the Lowest in California In an industry plagued with high taxes, Tinley and other cannabis companies in Long Beach, California are poised to receive a welcome and substantial tax reduction. This week, Long Beach City Council voted unanimously to meaningfully reduce non-retail taxes across the board. Previously, Long Beach taxes were 6% for manufacturing and 6% for distribution (the activities in which Tinley is involved) and similarly high rates for other cannabis functions such as retail, cultivation and lab testing. These rates were generally in line with other municipalities that were early issuers of cannabis licenses. Manufacturing and distribution taxes are now each moving to 1%, which will make Long Beach one of the most tax-effective municipalities in the state. Production cost competitiveness is critical in cannabis. This even applies to downstream products like edibles and drinks that don't face the same level of commodification that has been impacting upstream categories like cultivation and extraction. Recognizing the high cost of physical delivery of heavy, rapid-cycling products like drinks, we intentionally located our facility in the center of California's largest population cluster. Our facility is 14 miles south of downtown Los Angeles and immediately north of Orange County. We also installed high-end, purpose-built, fully automated bottling equipment from Italy that's designed to keep unit costs down. We also created an adjacent distribution center to eliminate transportation costs. We're now delighted that Long Beach is acting so aggressively to stay competitive with the low tax jurisdictions that exist around the state. These factors combined give us significant cost advantages for winning co-packing clients and expanding margins for our own products. Tinley's facility presented as of one 3 model facilities in Long Beach during the City Council vote on lowering cannabis taxes to 1% - among the lowest in California 2 More Mass Retail Chains On the heels of our 150-store deal with BevMo, two more mass retail chains have agreed to initiate store trials of our sister brand, Beckett's. One retailer is one of the USA's largest grocers - with over 2,000 stores - and the other is one of the country's largest warehouse-style chains. 'Sober-Curious' products represent one of the fastest-growing categories in mainstream beverage - up to 39% annual growth according to some surveys. Major beverage companies from Heineken to ABInBev are racing to launch non-alcoholic versions of their products - and we have the opportunity to do the same with non-infused versions of our existing liquor-style products. Expanding Beyond Dispensaries Statewide Home Delivery: We're delighted to have signed a deal with Driven Deliveries (OTC:DRVD) to make our products available for home delivery virtually anywhere in California. Driven covers 92% of California's population. Many "new" cannabis consumers remain averse to visiting dispensaries, and some statistics show that over half of cannabis purchases in the state are fulfilled via home delivery. Palm Springs Hotels - Rapid Delivery: We've also started a program that enables delivery to various Palm Springs hotels within 15-20 minutes. Tinley's menus are being placed in guestrooms in each of these hotels, and we expect more hotels to join as we head into high season. Cannabis Cafes: Perhaps the best place for cannabis drinks to become a top format for consuming cannabis is cannabis lounges. Tinley is excited to be launching in the country's first full-service cannabis restaurant and cafe: OG Cannabis Cafe. Located in West Hollywood, this cafe was founded by Lowell, one of California's premiere cannabis brands. The full press release can be found here: https://www.globenewswire.com/news-release/2019/12/02/1954637/0/en/Tinley-Adds-Two-Mass-Retailers-and-Enters-On-Premises-and-Home-Delivery-Channels.html Our current corporate presentation can be found here The inflection in the cannabis beverage category is continuing to (finally) accelerate. We continue to hope to be positioned for licensing in Long Beach by the end of the year. This means production early in the new year, and the enhanced production capabilities of this facility, coupled with the new, lower taxes, will enable us to consummate additional co-packing deals and drive volume of our own products. We're now in nearly 60 dispensaries and reorder rates continue to grow. The above channels and improved production capabilities will no doubt help further accelerate our growth. Thanks as always for your support. Best regards, Jeff _____________________ Jeff Maser Founder & CEO The Tinley Beverage Company Long Beach, California (310) 507-9146 x222 CSE:TNY OTCQX:TNYBF The Tinley Beverage Company 3435 Ocean Park Blvd. #107-701 Santa Monica, CA 90405