The cannabis sector has been on a roll since Canada legalized the product but 1933 Industries, Inc. (OTCMKTS:TGIFF) seems to have missed out on the wave. For starters, the company’s stock has been trading lower since 2017 and that has investors displeased. However, recent developments could change the trajectory of the stock.

Sale of cultivation real estate

In mid-May, 1933 industries revealed the sale of a newly constructed cannabis cultivation facility. In particular, Alternative Medicine Association (AMA), a subsidiary, sold and then leased back the facility which is located in Las Vegas, Nevada. The sale transaction amounted to $10.45 million, which the buyer has already delivered.

However, there is an extra $0.5 million in hold-back pending completion of the facility. Also, the amount in hold back will await the issuance of the permits which guarantee permanent occupancy. The company further revealed that there is another $0.25 million which the buyer will deliver once the facility has been issued with both state level and local operational permits.

The Hemp Lab

1933 Industries is also working on another hi-tech facility out of Las Vegas which will facilitate hemp extraction activities. In an update to partners and investors, the company moved to assure that the launch of the facility dubbed “The Hemp Lab” was well within the plan. Once complete, the company will leverage the facility to take on the big boys in the booming cannabinoid industry. In particular, The Hemp Lab is a collaborative project between TGIFF and an engineering firm.

The partners hope to create a facility which will be large, efficient and more robust than rival facilities in processing Hemp. Also, the improved designed should meet the new conditions set out in the Agricultural Improvement Act of 2018. The estimated monthly output of The Hemp Lab should be around 68,000 KGs of hemp biomass. Also, the company targets to use the facility to produce CBD oils and CBD isolate.

In light of this, the company expects that the new developments will inject the all-important momentum in the stock which has continued to trade under $1 CAD. The expanded production capacity should be able to generate more revenue while the proceeds from the sale of real estate should give the company enough fluidity to invest in more ventures.