Tinley's Announces Cost Cutting Initiatives, Board & Management Changes

The Tinley Beverage Company Inc. TNYBF TNY provided update on the status of the decommissioning of its Long Beach manufacturing facility and relocation of its bottling and related assets to the new Blaze Life Holdings, LLC ("BLH") 45,000 square foot cannabis manufacturing and distribution facility located in Canoga Park, California, and on related measures being immediately implemented to facilitate the relocation including, but not limited to, substantive cost cutting initiatives and changes to the board and management teams.

Relocation to Canoga Park Facility and Long Beach Production Schedule

Tinley's confirmed that it will decommission its Long Beach bottling assets before the end of the second quarter of this year, and currently expects installation and commissioning of bottling lines at strategic partner BLH's Canoga Park facility to take place at the beginning of the third quarter of this year.

Canadian Business - Pause on Expansion

Based on a current analysis of reintroduction of reformulated infused products to the Ontario Cannabis Store and the complexities of relaunching Beckett's into Canada at this time, to reflect the need to preserve capital and reduce expenses to focus future investment on high return initiatives, the company has decided to pause its plan to re-enter Canada indefinitely.

Staff and Management Changes

In addition to reducing staff at the Long Beach facility in anticipation of the move to BLH's Canoga Park facility, the company announced that Rick Gillis has agreed to step down from his role as president, Tinley's Brands USA.

In order to contribute to the preservation of cash, the company's CEO, CFO and certain remaining employees and consultants have temporarily agreed to defer their respective salaries for a limited period of time.

Advance from BLH

The company received an advance of $200,000 from the remaining funds available to the company under the BLH lending facility, with the final $300,000 from BLH currently expected to be expended by the company during the move to BLH's Canoga Park facility. The $200,000 will be applied by the company for general corporate purposes to provide the company, together with the company's ordinary course collection of client receivables, with sufficient capital to undertake its ordinary course operations until the company is able to move to BLH's Canoga Park facility and realize on anticipated synergies of that move.

Board Changes

The company announced that Kirsten Chapman has resigned from the company's board of directors for personal reasons and to pursue other commitments.

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