The Agreement Launches the Company as a Multi-State Operator and Establishes Local Manufacturing for Both its AMA and Canna Hemp™ Portfolio of Brands
VANCOUVER , Aug. 15, 2019 /CNW/ – 1933 Industries Inc. (the “Company” or “1933 Industries”) (TGIF.CN) (TGIFF), a vertically integrated cannabis consumer packaged goods company, is pleased to announce that it has signed a Management Services Agreement (“Agreement”) to provide operational and accounting services, general management and oversight to Green Spectrum Trading, Inc. (“Green Spectrum”), a medicinal and recreational cannabis business licensee in the State of California , for a two-year term. Green Spectrum operates as a licensed cannabis cultivator, manufacturer and distributor, and holds a pending home delivery business license. The Agreement serves to establish a local presence for the Company’s Alternative Medicine Association (AMA) branded products outside of Nevada , and expands the footprint of its CBD wellness line.
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Deep Manufacturing and Distribution Experience Enables Agreement
Under the terms of the Agreement, the Company will provide the services necessary for the operation of Green Spectrum’s business, including oversight over the general management of the business and operations, product manufacturing, distribution efforts, staffing, sales, marketing, accounting, and compliance. The Company will utilize its expertise in manufacturing and building distribution networks to undertake all initiatives relating to the establishment of a new cannabis manufacturing and extraction facility, inclusive of funding building and tenant improvements, providing start-up costs for the acquisition and installation of equipment, rent, labor, utilities, marketing, etc. The Company grants Green Spectrum a non-exclusive right and license during the term of the Agreement to use the Company’s licensed marks to produce, manufacture, market and sell the Company’s licensed products within California.
California’s Industry Potential
According to Statista, the California cannabis industry is projected to generate over $6.59 billion in sales