Post by
geodcan on Nov 17, 2021 3:37pm
Historically
Accountants don't expect black ink for about 7 years from start-up. JMHO but beverage companies should be quicker.
Cannabinoid infused beverage companies are a hot enchilada of problems because the rules of play are still being legislated and subject to change.
Some investors, including myself, saw Tinley as a gamechanger segwaying in to the beverage business and the marijuana and hemp businesses.
Canada broke bad and legalized rec use for adults following and utilizing some of the established rules for Medical use marijuana which is what really kept the ember glowing until such time as using it as a new fun, enjoyable vice for adults was put on the election ballot.
Tinley bought some beverage expertise and company building expertise to this brave new concept and chose to launch in California for their early acceptance of medical use pot and a large concentrated consumer base in a hot climate.
It was a long row to hoe for Tinley who felt so strongly in our concept that we decided to build our own manufacturing and formulating facility that became a nightmare to get producing.
Again, the concept of our own facility with extra capacity, as another form of generating revenue, seems like a good business decision because of the interest from companies wanting to co-bottle. Tinley is already increasing capacity in anticpation of production revenue, rolling in through our ability to supply cans and shots.
We had a hitch or two with a lawsuit for a contractors lien that we got dragged into and somehow worked a deal to satisfy all parties, which made sense because we probably couldn't get any alternative contractor to jump into our company to add to the production line with legal pitfalls related to payment for services.
The delays to get this facility operational came with a lot of hard to believe excuses but I am still hopeful that the facility will make money from co-bottlers as long as they can meet licensing and permitting issues.
I believe we are headed for 12 million unit production capacity times 3 for adding the other two lines which projects out to 36 million units at 50c minimum per unit, we are told. Total is 18 million minimum before operating costs and management renumeration.
How much will be left depends on how "golden" the renumeration package is. I was hoping that our Tinley skus would be such a hit that we would need all of our line time just for our skus and I was hopeful of being able to command premium margins, much like Canopy did in Canada, for the novelty and lack of products in this category.
Constellation Brands added a ton of legitimacy to cannabinoid infused beverages with their $5 billion C. investment in Canopy Growth because they saw their future as losing market share to infused, non alcohol skus.
Can't beat 'em, join 'em! Canopy and the other Canadian LPs are very aware that State law protection may not apply to us and we are reluctant to set up shop on US soil until marijuana and hemp are decriminalized at the Federal level, not that US MSOs aren't capitalizing on the Feds keeping up their part of the agreement to be hands-off and let State law enforce the rules.
Tinley needs a hard look at from the SEC to see if there is more there than marketmaker manipulation or the lawsuits will start from Investors.
Management's job right now is to rebuild shareholder confidence which has our shares at yearly lows or to search out a management team that is more inspired or capable.
Alternatively, shareholders need more than the ice cream on bullshyt or non-existant nrs backed with some numbers and honest opinions of what the delays are.
Despite all of the sunshine and butterflies we've had blown up our azz, shareholders deserve some kind of assurance that our formulations and products were worth the formulation costs and have profit potential.
As a long term shareholder, I'm not getting the reassurance that shareholders are being put first. Maybe Rick isn't up to rebuilding our company and I am still not sure what the others are doing or have done.
Tough love, I know, but every once in awhile my accomodating demeanor stumbles and I just say what I think.
I do believe that we are on the verge of some revenues or that we are in the crosshairs of a takeover.
Maybe the politicians in the US can give potpreneurs a boost with a "triggering event"!
glta and dyodd
Comment by
DieBartDie on Nov 17, 2021 5:08pm
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