Under the terms of the MSA, Tinley’s will relocate its bottling assets and related equipment to BLH’s new 45,000 square foot cannabis manufacturing and distribution facility located in Canoga Park, California (the “Canoga Park Facility”) and BLH and its licensed subsidiaries will provide certain management and operational services to Tinley’s. Based upon management’s current financial modelling, the provision of such services by BLH and relocation of Tinley’s bottling assets to the Canoga Park Facility is expected to result in operating cost savings of approximately USD $1 million per year. Tinley’s CEO, Teddy Zittell, said: “Since we began our collaborative partnership with BLH in June 2022, we’ve successfully delivered cost reductions and increased our operating capacity. When production begins at the Canoga Park Facility, we expect efficiencies to accelerate, with additional benefits anticipated from the on-site capacity for inventory storage and integrated first-mile and last-mile distribution services provided by SuLo Distro, a subsidiary of BLH”.
As part of the relocation of the Company’s bottling assets, the Company will decommission and vacate its current manufacturing facility in Long Beach, California. Tinley’s plans to move its bottling assets to the Canoga Park Facility during the latter half of Q2 2023 and expects such assets