Tinley Beverage (CNSX: TNY) is at a crucial juncture after coming under pressure following a meteoric rise from one-year lows. After a major correction, it awaits to be seen if the upward momentum has what it takes to fuel a bounce back from support.
Tinley Beverage Catalysts And Price Analysis
Some of the catalysts likely to support further upside action following the correction is the confirmation that the Company has closed a financing deal worth $5.5 million. The Company is also fresh from completing the expansion of the Phase 2 facility, opening the door for the production of next-generation cannabis beverages.
The Company’s revenue base also appears to be growing by the day, if the shipping of cannabis-infused beverages worth $100,000 to distributors is anything to go by. The Company’s manufacturer in Coachella Valley has also shipped inaugural batches of liquor inspired 27-cannabis beverages all but pointing to an exciting year on revenue generation.
A rally to the CA$0.90 experienced serious resistance in what could be attributed to investors taking profits after an excellent run since the start of the year. The stock has since corrected to the CA$0.60 level from where it is trying to make a comeback.
Standing in the way of the stock bounce, back to 2019 highs is the CA$0.75 resistance level. A spike followed by a close above the technical level should open the door for the stock to make a run for 52-week highs.
Failure to stabilize above the CA$0.60 could attract further short selling pressure that could result in Tinley Beverage plummeting back to 52-week lows of CA$0.39.
What Does Tinley Beverage Do?
Tinley Beverage is engaged in the development, manufacturing, and distribution of liquor-inspired alcohol-free cannabis-infused beverages. Its product line is made up of HempLife, and Tinley’s Tonics line up for distribution in retail locations in California as well as online across the country.
$5.5 Million Financing Boost
Tinley Beverage shares have once again started picking up some steam after major correction from this year highs. The catalysts fuelling the renewed upside action is the confirmation that the Company has closed a $5.5 million financing having also cleared testing for dispensary shipments.
With the bolstered balance sheet, Tinley Beverage intends to commission its Phase 3 facility in Long Beach California. Plans are also underway to finance production for the fulfillment of existing $200,000 backorders and anticipated new orders. The Company also intends to conduct robust marketing programs in major markets throughout California.
“This financing enables the Company to create and grow market share as we continue to innovate. We can deliver cannabis beverages on a cost-efficient, scaled basis to new and existing consumers in North America’s largest beverage and cannabis market,” said Ted Zittell, director of Tinley.
Enhanced Production Capacity
The articulated plans have continued to strengthen investors’ confidence in the stock as they signal what could turn out to be a record-breaking year on revenue generation. Tinley Beverage has already shipped inaugural batches of its liquor inspired Tinley 27 cannabis beverages a month ahead of schedule, another indication that the Company is on course to generate significant revenues.
Shipping a month ahead of schedule reflects the Company’s enhanced production capabilities ahead of the commissioning of phase 2 facility. Tinley Beverage has also started benefiting from the elimination of the production and revenue constraints that existed with Phase 1 equipment.
Completion of Phase 2 expansion of the bottling facility at Coachella has opened the door for Tinley Beverage to produce up to 3 million bottles per year. With the expansion, the Company is gearing to commence production of the next generation versions of acclaimed cocktail-inspired non-alcoholic cannabis beverages
“We are excited to be launching our next-generation products, with a significant amount of dispensary demand already in hand because of the positive consumer response we received for our initial products. We believe that Tinley is the first-mover with liquor-inspired, non-alcoholic beverages that contain cannabis 2.0 solubilization technology,” said Rick Gillis, President, and Tinley Western USA.
Amidst the steep pullback, Tinley Beverage underlying fundamentals are as solid as ever as it continues to strengthen its prospects as a manufacturer of cannabis-infused beverages. The Company embarking on an aggressive commercialization drive in pursuit of revenues is a development that should continue to excite investors.
Product line expansion also paves the way for the Company to diversify its revenue streams by targeting different facets of the markets. That said the stock should continue to climb the ladder after the recent correction, in line with the bullish momentum that began early in the year.
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Disclosure: We have no position in CNSX: TNY and have not been compensated for this article.