The Tinley Beverage Company Inc. announced that, for the first time, a batch of product manufactured at Tinley's Long Beach Facility has successfully completed the State of California's testing, quarantine and lab sampling processes onsite under the distribution license granted to Lakewood Libations Inc. While the Distribution License was issued to Lakewood in August 2021, it could not be utilized until Lakewood received its distribution business license from the City of Long Beach, which was issued earlier this month. As previously announced, the Company has entered into a purchase agreement to acquire all of the equity interests in Lakewood, the closing of which is subject to certain standard conditions precedent including applicable regulatory approvals. Receipt of the Distribution License and Business License is expected to expedite the testing and delivery of manufactured products, as brands will now be able to benefit from a new onsite `first-mile' distribution option adjacent to Lakewood's licensed manufacturing space at Tinley's Long Beach Facility.

The Business License was issued following months of extensive permitting work and inspections and marked the final step allowing Tinley's Long Beach Facility to activate the state Distribution License. This `first-mile' distribution capability is expected to increase efficiency and speed to market by allowing the transfer of manufactured product from Tinley's Long Beach Facility's manufacturing area to the immediately adjacent licensed distribution space operating under the Distribution License. The first batch of product transferred, tested and cleared for market under the newly activated Distribution License was the Company's own Tinley's '27 Coconut Cask Elixir.

VCC Brands' New CQ Shots in Indica and CBD-Relief: First Client Batches to Move to Lakewood Distribution One of Lakewood's first contract manufacturing clients, Cannabis Quencher infused beverages, will be the first client brand to pass "through the wall" from Lakewood's manufacturing licensed area to the adjacent distribution licensed premises for quarantine, lab sampling and state testing. The first batches of freshly re-designed 100 mg THC CQ shots are expected to be produced on the mini bottle line later this month.