Earlier this week, we published the first part of a two-article series that covers the recent performance of the cannabis industry.
The initial article focused on companies that are in the Canadian cannabis sector. Today’s article will cover 3 companies that are focused on the US cannabis market. The US companies represent emerging growth opportunities that have been laser focused on execution and are businesses that we are closely watching.
1933 Industries: A Burgeoning THC and CBD Execution Story
Las Vegas has transformed into one of the most attractive US markets for cannabis businesses. This is an opportunity that we have been closely watching following the opening of the recreational market in July 2016. A few months ago, we traveled to Sin City to visit 1933 Industries (TGIF.CN) (TGIFF), a company that has been laser focused on the Las Vegas cannabis market.
Last month, 1933 Industries reported to have received final approvals from both Clark County and Nevada’s Department of Taxation for the transfer of its existing cultivation licenses to the new cultivation facility. The new facility is almost 5 times larger than the initial facility and is expected to be able to produce approx. 700 to 800 pounds of dried cannabis per month.
Although we are bullish on the growth prospects associated with the new facility, 1933 Industries has been under pressure. During the back half of the year, we expect production capacity to ramp higher and for 1933 Industries to recognize the benefits associated with the facility. We have highlighted several of the recent developments that we have found to be significant:
August 15th – 1933 Industries officially entered the California cannabis market via an agreement with Green Spectrum Trading, Inc.. Under the terms of the Agreement, the Company will provide the services necessary for the operation