1933 Industries Announces Approval of Debenture Amendments

Rhea-AI Summary

1933 Industries Inc. (CSE:TGIF)(OTCQB:TGIFF) announces that Holders of 10% Senior Unsecured Convertible Debentures Due December 31, 2023, approved proposed amendments at an Extraordinary Meeting. The resolution allows for the extinguishment of the Debentures upon maturity through the issuance of a Unit or a new 10% unsecured convertible debenture. The Board of Directors has the discretion to determine the best option. The settlement is expected to occur shortly following the Maturity Date.

VANCOUVER, BC / ACCESSWIRE / November 14, 2023 / 1933 Industries Inc. (the "Company" or "1933 Industries") (CSE:TGIF)(OTCQB:TGIFF), a Nevada-focused cannabis cultivator and producer, announces that Holders of 10% Senior Unsecured Convertible Debentures Due December 31, 2023, (the "Debentureholders") approved the proposed amendments put forth during an Extraordinary Meeting held today.

The resolution being placed before the meeting was to consider, and if thought fit, to:

(i) approve the extinguishment of the Debentures upon maturity and the principal debt owed thereunder, excluding any interest in arrears, through the issuance of a Unit to the Debentureholders, each Unit being issued at a deemed price of $0.02 per $1.00 of principal, and one share purchase warrant exercisable into one additional common share of the Company at a price of $0.05 for a period of five years from the date of issuance; or

(ii) approve the extinguishment of the Debentures upon maturity and the principal debt owed thereunder, excluding any interest in arrears, through the issuance of a new 10% unsecured convertible debenture (the "New Debenture") with a two year maturity, convertible into units at a price of $0.05 per unit, each unit comprising one common share of the Company and one share purchase warrant, subject to certain acceleration provisions as more particularly defined in the indenture governing the New Debenture; and

(ii) authorize the Board of Directors of the Company, in its sole discretion, to determine which of (i) or (ii) will be in the best interest of the Company and proceed with either (i) or (ii) above or to not act upon this resolution, all without the further approval or authorization of the Debentureholders.

At the meeting, $2,506,000 or approximately 76.66% of the outstanding debentures were represented by proxy. Debentureholders voted 78% in favour, representing 1,956,000 shares, for the extraordinary resolution considering two Debenture Settlement Options, and authorizing the Board of Directors of the Company to proceed with one of the options, while 550,000 shares were voted against.

"On behalf of the Board and the entire Company, I wish to thank the Debentureholders for their overwhelming support of the Settlement Options", said Mr. Paul Rosen, Chairman and CEO of 1933 Industries. "The Board of Directors will decide and announce which of the two options it chooses to proceed with before the Maturity Date".

The Company anticipates that the settlement of the Debentures would occur upon or shortly following the Maturity Date, subject to Canadian Securities Exchange approval.Further details of the amendments are contained in the Management Information Circular filed under the Company's profile on SEDAR available www.sedar.com and on the Company's website at www.1933industries.com/investors/eom-materials

About 1933 Industries Inc.

1933 Industries is a Nevada-based company, focusing on the cultivation and manufacturing of a large portfolio of cannabis consumer-packaged goods in a variety of formats for both the wholesale and retail markets. Its product offerings through its in-house brands include: wholesale flower, pre-rolls, and extracted products under the AMA and Level X brands for the Nevada market; and Canna Hemp™, a national cannabidiol (CBD) brand of wellness products that includes tinctures, gummies, topicals and sports recovery products. The Company owns 91% of Alternative Medicine Association, LC (AMA) and 100% of Infused MFG LLC (Infused). For more information, please visit www.1933industries.com

For further information please contact:
Alexia Helgason, VP, IR, Media
604-728-4407
alexia@1933industries.com

Paul Rosen, CEO
paul@1933industries.com

Disclaimer for Forward-Looking Information

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.

SOURCE: 1933 Industries Inc.

View source version on accesswire.com:
https://www.accesswire.com/803427/1933-industries-announces-approval-of-debenture-amendments

FAQ

What amendments were approved at the Extraordinary Meeting?

The Holders of 10% Senior Unsecured Convertible Debentures Due December 31, 2023, approved the extinguishment of the Debentures upon maturity through the issuance of a Unit or a new 10% unsecured convertible debenture.

Who has the discretion to determine the best option for the settlement?

The Board of Directors of 1933 Industries has the discretion to determine the best option for the settlement.

When is the settlement of the Debentures expected to occur?

The settlement of the Debentures is anticipated to occur upon or shortly following the Maturity Date, subject to Canadian Securities Exchange approval.