Tinley's Plans First Can Run for Week of March 7, 2022 at Long Beach Facility; Commences Canadian Production at Contract Manufacturers, and Completes Financing
C.TNY | 5 minutes ago
TORONTO and LOS ANGELES, Feb. 28, 2022 (GLOBE NEWSWIRE) -- The Tinley Beverage Company Inc. (CSE:TNY; OTC:TNYBF) (“Tinley’s” or the “Company”) is pleased to provide US and Canadian corporate updates and to announce the closing of a second tranche of a private placement.
Corporate Updates
Long Beach Facility: Can Line Set to Manufacture Client Product Week of March 7, 2022
The Company is pleased to announce that client-supplied materials required for production on the can line at Tinley’s Long Beach Facility that had been delayed by supply chain issues are now expected to be received on site over the next week. The Company confirms that Lakewood Libations Inc. has been able to schedule the first commercial manufacturing run on the recently completed Codi can line, now expected to take place during the week of March 7, 2022.
Tinley’s Brand Launch in Canada
The Company is delighted to report that the inaugural Canadian production of its Tinleys ’27TM Smooth Coconut, the Canadian version of California’s Emerald Cup-award winning Tinley’sTM ’27 Coconut Cask, is expected to be completed this week at its Ontario licensed contract manufacturer. These products are expected to be delivered to the Ontario Cannabis Store (“OCS”) warehouse mid-March 2022 and will be available for Ontario dispensaries in April 2022.
Production of Tinleys ClassicsTM Mystic Dove, the Canadian version of its Tinley’s TonicsTM La Paloma Mystic Dove, has been delayed by recent border closures impacting the timing of ingredient delivery to the British Columbia licensed contract manufacturer. Production is now scheduled for March 2022. Consequently, the OCS has agreed to defer the launch of this SKU to the second phase of Spring 2022 product releases, making Mystic Dove available to Ontario dispensaries in May 2022.
The Company continues to collaborate with its licensed contract manufacturers and sales agents to accommodate various provincial boards’ presentation requests and 2022 listing timeframes. Updates on the Alberta Gaming and Liquor Commission (“AGLC”) decisions for April 2022 listing are expected late in March 2022. The Company continues to work towards late Spring 2022 listings of Tinley’s Canadian products with the British Columbia Liquor Distribution Branch (“BCLDB”). Tinley’s will provide ongoing updates to shareholders on the currently scheduled production and release dates, and on progress towards additional distribution across Canada.
Closing of Non-Brokered Private Placement
The Company is pleased to announce the closing of the second tranche of a non-brokered private placement (“Private Placement”) of 3,450,000 (“Units”) of the Company for gross proceeds of C$517,500. Each Unit is comprised of one common share in the capital of Tinley’s (“Common Shares”) and one common share purchase warrant (each, a “Warrant”). Each Warrant is exercisable into one Common Share (a “Warrant Share”) at a price of C$0.20 for a period of 24 months following the date of issuance. In consideration for the services of certain eligible finders who introduced subscribers under the Private Placement to Tinley’s, the Company issued an aggregate of 108,000 compensation options (“Compensation Options”) to acquire 108,000 Units at a price of $0.15 per Unit (with each such Unit comprised of the same securities as the Units issued to subscribers under the Private Placement) and paid aggregate cash commissions of $13,800 to such finders. The net proceeds from the Private Placement will be used for working capital, capital expenditures, marketing, establishing new business lines and exploring potentially accretive transactions, including potential mergers and acquisitions. The Units, Common Shares, Compensation Options, Warrants and Warrant Shares are subject to a statutory hold period of four months and a day from the date of closing.