Tinley Beverage Company Inc C.TNY

FDA open to possibility of legalizing some cannabis products

[KingKong]

In the coming months, the Food and Drug Administration will weigh whether certain food and dietary supplements containing cannabis or cannabis derivatives can be sold without violating federal law. Cannabis's potential to compromise food safety or harm animals is just one of the many issues the agency will consider.

In April, the FDA laid out its plan to study the issue, which was prompted by growing interest in FDA-regulated products derived from Cannabis sativa L. and its components, including CBD. https://www.avma.org/News/JAVMANews/Pages/190601f.aspx
 

CVS to sell CBD products in California.

Although they are not selling Tinley's products at the moment, it's still a great step forward for the industry as a whole. 

I just wanted to point out a few things between CVS & some of Tinley's distributors, for any new investors who may have missed this....

“We are carrying hemp-derived CBD products in select states to help meet consumer demand for alternative care options,” said CVS Health Spokesperson, Mike DeAngelis.

The items will be sold in Alabama, California, Colorado, Illinois, Indiana, Kentucky, Maryland and Tennessee.

CVS has at least 9,800 stores nationwide and will soon roll out the CBD products in over 800 stores in the eight states.

https://ksby.com/news/2019/03/22/cvs-to-sell-cbd-products-in-california

You can see on Tinley's Corporate Presentation that they are not only in 7/11 but Shell & Chevron. That is HUGE, do you understand how many stores these three companies alone have in the world.... If not I can give you the numbers...
 

Shell, approximately 25,000 Shell-branded gas stations in the U.S.alone.

Chevron has nearly 8,000 retail stations in the United States alone.

7/11 has 56,000 world wide.

Chevron alone has 10x the amount of CVS locations in the U.S!
Let that sink in for a minute.

And one thing is for sure, if anybody is going to get these products on shelves it's management with the experience that ours has!

There's a time & place for everything & that time for Tinley is approaching.

https://tinleycollective.com/wp-content/uploads/Tinley-Corporate-Presentation-Q1-2019-2.pdf
 

I will put these numbers modestly into perspective at first.
 

If "Hemplify" only, were to obtain shelf space in half of the 56,600 stores of 7/11 due to some regulatory issues in other countries perhaps, & earn a modest 1,000 dollars in revenues from each location on an annual basis, which is extremely modest in my opinion, but regardless the revenue generated from Hemplify alone would be in excess of 28 Million Dollars. The numbers are impressive to say the least. 
 

If I readjust these numbers to a more optimistic outlook of 10,000 in annual revenues from Hemplify alone, in half of the 56,600 7/11 franchises, we start to see the massive opportunity here. The reveune would be a a jaw dropping 283 Million anaully from Hemplify alone.

One more example for good measure. 

If "Hemplify" alone, was to get shelf space in half of the 8 thousand Chevron locations in the U.S, and earn a modest 1 thousand in revenues from each location on an annual basis, which is extremely modest in my opinion, but regardless the revenue generated would be 4 Million. If I readjust these numbers to a more optimistic outlook of 10,000 in annual revenues from Hemplify in half of the Chevron locations in the U.S, the revenue would be 40 Million, which is close to our current market cap. 
 

And based on a update by Jeff last year it's likely that the THC infused beverages may do way more numbers than the CBD infused. I personally think that the demographics for the CBD infused beverages are much more attractive & will be a huge cash generator for Tinley, but that's just my opinion & the market has indicated otherwise, at this given moment.
 

Tinley has sold more of its cannabis margarita in the weeks subsequent to Q2 than the combined sales of Hemplify in fiscal 2017. Accordingly, the Company is shifting the majority of its resources to its THC  infused beverages, while allocating a limited amount for the maintenance of the Hemplify CBD products. 
 

https://webfiles.thecse.com/180829_Tinley_Launches_Moscow_Mule-v5_jm-final.pdf?b6Ij.SXHLlLnJYOyN_Etju0rDhy4unL1
 

Tinley is building "Brand Awareness" in California & cannot even keep up with demand, literally. 

 

California is now the world's fifth-largest economy, according to recent data released by the U.S. Department of Commerce. Its 2017 Gross State Product was $2.747 trillion, surpassing the United Kingdom's $2.625 trillion Gross Domestic Product.
 

Canada placed 10th in the ranking of GDP of the 196 countries, Canada is 1.6 trillion. 
 

California is about the size of Newfoundland, which is a small province in Canada. It's easier to create "brand awareness" there than it would be attempting the same thing in another location, like all of Canada for example, which their competitors will have to do.
 

Tinley Beverages also has a two year head start in California, and their competitors in Canada won't be legally allowed to sell infused beverages until later 2019.
 

This means they won't even be able to test the public market & tweak their formula to the customers requests, while Tinley Beverages is selling out of products in California!
 

California land mass, 423,970 km / Newfoundland land mass, 405,212 km.
 

Tinley Beverages is being valued at roughly $58 million right now in a market that is roughly 7-10 times bigger than the Canadian market. Plus, Tinley is a unique company with first mover advantage in the CBD/THC beverage market. Canopy Growth Corp stormed its way to the top of the growing industry because they were the first public marijuana producer, and they didn't even have first mover advantage (there were already growers established in the industry before them - they just had quicker access to capital since they were public, and therefore could expand much more rapidly). Tinley is not only the first pure-play "advanced marijuana beverage" company to be publicly traded, but they are also one of the pioneers / first movers in this space.

Cheers.