RE:RE:RE:RE:RE:Upgrades Mini Bottling Line for Demand, resolves disputeTinley's not only expanding the mini-line, in the monthly updates on the CSE the company mentioned all beverage production capacity is being expanded with the addition of new lines.
"Completing installation and commissioning of additional bottling functionality in the Long Beach facility that includes the expansion of the bottling formats, canning, tunnel pasteurization, and the expansion of the mini line capacity."
Monthly Update for TNY on thecse.com The current mini line had been acquired via a royalty agreement with the vendor. Under the terms of the royalty agreement, the Company is entitled to a receive a complete return of the cost of the equipment upon delivery of the current mini line equipment to the vendor.
This is why the company cannot keep both mini-lines, if I am not mistaken. The Company will use its existing mini line to service its current and anticipated mini line clients until the installation of the new mini line is complete. The Company currently expects to continue to consummate manufacturing agreements with additional third-party brands that require mini bottle formats. cosinus180 wrote: You are assuming that they have extra room for the install of a second line. Seems to me like the shop layout needs or will need a complete reconfiguration. If the line is such in demand, why not keep both if they have the room?
Tinley20xx wrote: They don't need to start over the mini line. They can use the existing mini line until the new one is installed. Once that happens they can ship back the current mini line and get complete return of cost for that line. I'm curious as to how much it will be given the company had a royalty agreement with the vendor, and, will there still be a royalty agreement with the same vendor on the new line? I certainly hope not. Less royalty = more $$$$ in our pockets something we sorely need at this stage of the game.