The Tinley Beverage Company Inc. said its planned relocation from its Long Beach, California facility to Blaze Life Holdings' facility in Canoga Park will be completed closer to the end of the third quarter or closer to the fourth quarter of 2023.
Originally projected for the end of the second quarter or beginning of the third quarter of this year, Tinley said the updated time frame is a result of delays relating to Blaze Life’s receipt of municipal licenses and approvals. Final interior renovations and capital improvements to Blaze Life’s facility required to satisfy municipal licensing inspections and approvals are underway. The completion of Tinley's relocation to Blaze Life’s facility is expected to coincide with receipt of the outstanding municipal licenses and approvals.
Once Tinley's bottling operations are moved from Long Beach to Blaze Life’s facility, the company expects to save approximately $1 million annually in overhead operating expenses. Based on the anticipated savings, along with management's revenue targets for cannabis-infused and non-infused products over the next 18-24 months, Tinley said it may be in a position to earn positive cash flow by or during the second half of 2024.
In light of the delays, Tinley said it negotiated a discounted lease extension to use the Long Beach facility until July 15. The company continues to operate its bottling and canning lines at the facility, serving both Tinley's ongoing clients and new Blaze Life co-packing clients. Tinley said it intends to work with the landlord of the Long Beach facility to extend its lease so that it may continue to serve its and Blaze Life’s clients until it can complete its relocation.
Following the move to Canoga Park, Tinley's plans to re-launch its line of cannabis-infused beverages under the Beckett's Tonics and Beckett's '27 brand. This rebrand will include current micro-dosed cannabis-infused beverage products, as well as new higher-potency products.
Additionally, Tinley is currently staging ingredients and packaging materials for third-quarter production of its non-infused, non-alcoholic Beckett’s ready-to-drink mocktails and multi-serve spirits to satisfy new Total Wine & More purchase orders and to build its inventory to more easily satisfy future purchase orders.
"We are a completely different company today than we were under the previous management team, and it's time to re-brand under one name to position us as market leaders in cannabis-infused and non-infused beverage sectors,” said Tinley CEO Teddy Zittell. “We have a great partner in Blaze Life, and its state-wide distribution division, Sulo. It's time to show a fresh face and blow wind into Sulo's sails with a strategic relaunch, while leaving the anchors of the past behind. We will seek shareholder approval to pass a special resolution changing the company's name to Beckett's at the company's next annual general meeting, which we expect to call and hold before year-end."
Previously, Tinley's announced that due to cash restrictions and other financial restraints, both the CEO and CFO agreed to defer their salary until the company was in a position to pay its executive salaries. As a result of considerable cost savings, along with solid co-packing revenues and revenue from the sale of Beckett's non-infused products, the company can now pay a salary to its CFO. Zittell is continuing to defer his salary.