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VANCOUVER, B.C., CANADA (July 17, 2020) – 1933 Industries Inc. (the “Company” or “1933 Industries”) (CSE: TGIF) (OTCQX: TGIFF), a vertically-integrated cannabis consumer packaged goods company, announces today a non-brokered financing of up to C$5,000,000 (“Offering”).
The Offering will consist of the sale of up to 66,666,666 units (each a "Unit") at a price of C$0.075 per Unit. Each Unit will consist of one common share of the Company ("Common Share") and one half of one transferable share purchase warrant ("Warrant"). Each whole share purchase Warrant will entitle the holder to acquire one Common Share at an exercise price of C$0.125 per share for a period of 24 months following the closing date of the Offering ("Closing Date"). The net proceeds of the Offering will be used to fund the Company's ongoing business development and general working capital.
1933 Industries recently announced the appointment of new executive leadership, including Mr. Paul Rosen as CEO, Mr. Gene Ruiz as President and Ms. Tricia Kaelin as CFO. The Company also announced amendments to its convertible debentures, including the deferral of interest payments to the maturity date in September 2021 (refer to news release dated June 29, 2020).
Mr. Rosen stated: "1933 Industries has the assets in place to build a self-sustaining and profitable business. Our new cultivation facility in Las Vegas is now running at full capacity and we have launched new hemp and CBD wellness products and opened up new sales channels, including through Amazon and Walmart. We have cut our public entity expenses by 68% and our non-operating expenses by 46% since November 2019, and we continue to move aggressively to control costs. This financing will strengthen our balance sheet and provide additional cash reserves to manage COVID-19 related uncertainty while we execute on our strategy."
The Offering is anticipated to close on or about August 14, 2020. Each Warrant is subject to an accelerated expiry. If the closing price of the Company's common shares exceeds C$0.25 per share for a period of 10 consecutive trading days, the Company may provide notice of acceleration, after which holders of the Warrants will be entitled to exercise their Warrants for a period of 30 days. All securities in respect of the Offering will be subject to a four month and one day hold period commencing on the Closing Date.
The Units will be sold pursuant to private placement exemptions available in Canada and certain foreign jurisdictions. The Offering is subject to certain conditions including, but not limited to, the receipt of all necessary regulatory and stock exchange approvals, including the approval of the CSE. The securities have not been and will not be registered under the United States Securities Act of 1933, as amended ("U.S. Securities Act") or any state securities law and may not be offered or sold in the United States unless registered under the U.S. Securities Act and applicable state securities laws or an exemption from such registration is available.
About 1933 Industries Inc.
1933 Industries is a vertically-integrated, growth-orientated company, focusing on the cultivation and manufacturing of cannabis consumer branded goods in a wide range of product formats. Operating through two subsidiaries, the Company controls all aspects of the value chain with cultivation, extraction, processing, and manufacturing assets supporting its diversified portfolio of cannabis brands and licensing partners.
Our award-winning proprietary portfolio of brands include: AMA flower and AMA concentrates, as well as CBD-infused Canna Hemp™, Canna Hemp X™, and Canna Fused™ products. Partners under licensing agreements include: Birdhouse Skateboards™, Blonde™ Cannabis, Bloom™, Denver Dab Co., Grizzly Griptape, OG DNA Genetics, The Pantry Company, PLUGplay, and The Original Jack Herer®.
The Company owns 91% of Alternative Medicine Association, LC (AMA), and 100% of Infused MFG LLC.
For further information please contact:
Alexia Helgason, VP, IR and Corporate Communications
604-674-4756 (ext. 1)
Paul Rosen, CEO
604-674-4756 (ext. 1)
Neither the Canadian Securities Exchange nor its Regulation Services Provider (as that term is defined in the policies of the Canadian Securities Exchange) accepts responsibility for the adequacy or accuracy of this release.
Notice regarding Forward Looking Statements: This news release contains forward-looking statements. The use of any of the words "anticipate", "continue", "estimate", "expect", "may", "will", "project", "should", "believe" and similar expressions are intended to identify forward-looking statements. Although the Company believes that the expectations and assumptions on which the forward-looking statements are based are reasonable, undue reliance should not be placed on the forward-looking statements because the Company can give no assurance that they will prove to be correct. Since forward-looking statements address future events and conditions, by their very nature they involve inherent risks and uncertainties. These statements speak only as of the date of this news release. Actual results could differ materially from those currently anticipated due to a number of factors and risks including various risk factors discussed in the Company's disclosure documents, which can be found under the Company's profile on www.sedar.com. 1933 Industries undertakes no obligation to update publicly or revise any forward-looking information, whether as a result of new information, future events or otherwise, except as required by law.