1933 Industries Announces Non-Brokered Private Placement
1933 Industries announced a non-brokered private placement financing to raise up to $1.8 million by issuing up to 120 million units at $0.015 per unit.
Each unit includes one common share and one share purchase warrant, exercisable at $0.05 for five years. The funds will enhance company facilities and cover general administrative expenses.
The private placement is open to Canadian residents and will close around July 22, 2024, pending regulatory approvals. The company may pay finder's fees as permitted by policy and laws.
Chairman and CEO Paul Rosen highlighted the company’s strategic review for potential mergers, asset sales, and a business focus shift to leverage the expected rescheduling of cannabis. The AMA brand was noted for its top sales performance in Nevada's concentrate, flower, and pre-roll categories.
The employment agreement of General Counsel and VP Caleb Zobrist has ended.
- Potential to raise up to $1.8 million through private placement financing.
- Units include share purchase warrants exercisable at $0.05 over five years.
- Funds will be used for capital improvements and general administrative expenses.
- The AMA brand recognized as a top seller in Nevada for concentrates, flower, and pre-rolls.
- Strategic review includes M&A activity and potential asset sales to strengthen market position.
- Highly dilutive financing with up to 120 million units issued.
- Shares priced at $0.015 per unit, indicating low market valuation.
- Operating challenges faced by the pure wholesale enterprise in Nevada.
- Employment agreement of General Counsel and VP Caleb Zobrist ended, possibly indicating internal changes or instability.
- Closure of the private placement subject to regulatory and other approvals, adding uncertainty.
NOT FOR DISTRIBUTION TO THE UNITED STATES OR FOR DISSEMINATION IN THE UNITED STATES
VANCOUVER, BC / ACCESSWIRE / June 7, 2024 / 1933 Industries Inc. (the "Company" or "1933 Industries") (CSE:TGIF)(OTCQB:TGIFF), a Nevada-focused cannabis cultivator and producer, is pleased to announce that it intends to complete a non-brokered private placement financing (the "Private Placement") consisting of a maximum of 120,000,000 Units, at a price of
Each Unit shall consist of one common share in the capital of the Company ("Share") and one Share purchase warrant ("Warrant"), with each Warrant entitling the holder thereof to purchase a Share at an exercise price of
There is an offering document dated June 7, 2024 (the "Offering Document") related to the Private Placement that can be accessed under the Company's profile at http://www.sedarplus.ca and on the Company's website at http://www.1933industries.com.
This offering document contains additional detail regarding the Private Placement, including additional detail regarding the expected use of proceeds from the Private Placement. Prospective investors should read this offering document before making an investment decision.
As disclosed in the Offering Document, the Company intends to use the net proceeds from the Private Placement to fund additional capital improvements at the Company's existing facilities and for general administrative and working capital expenses.
The Units offered as a part of the Private Placement shall be offered to purchasers' resident in all provinces of Canada, including Quebec, pursuant to the listed issuer financing exemption under Part 5A of NI 45-106 (the "Listed Issuer Financing Exemption"). Units offered under the Listed Issuer Financing Exemption will not be subject to resale restrictions to Canadian resident investors pursuant to applicable Canadian securities laws.
The Private Placement is anticipated to close on or about July 22, 2024, or such later date as the Company may determine. The closing is subject to certain conditions including the receipt of all necessary regulatory and other approvals, including the Company's completion of its filing obligations under the policies of the CSE.
As disclosed in the Offering Document, the Company may pay finder's fees under the Private Placement as permitted by CSE policy and applicable securities laws.
The securities described herein have not been and will not be registered under the United States Securities Act of 1933, as amended, or any U.S. state securities laws, and may not be offered or sold in the United States absent registration or available exemptions from such registration requirements. This press release does not constitute an offer to sell or a solicitation of an offer to buy any securities in the United States, or in any jurisdiction in which such offer, solicitation or sale would be unlawful.
Paul Rosen, Chairman and CEO of the Company commented, "The Company is raising capital and reviewing various strategic options, including, M&A activity, the sale of certain Company assets, and a shift in business focus. These actions are being undertaken to position the Company well for the anticipated rescheduling of cannabis. While operating as a pure wholesale enterprise in Nevada is challenging, in May, Headset business intelligence recognized the AMA brand as Nevada's top selling concentrate brand, second top selling flower brand and third top selling pre-roll brand, based upon total revenue."
The Company also announces that its General Counsel and Vice President, Mr. Caleb Zobrist's employment agreement has ended in accordance with the term specified therein. The Company thanks Mr. Zobrist for his many contributions over his tenure and wishes him well in his future endeavours.
About 1933 Industries Inc.
1933 Industries is a Nevada-based licensed producer, focused on the cultivation and extraction of a large portfolio of cannabis consumer products in a variety of formats under its flagship brands, Alternative Medicine Association (AMA) and Level X. Its product offerings are cultivated at the Company's 68,000 sq. ft. indoor facility and marketed directly to retail dispensaries. AMA branded flower, infused pre-rolls, and in-house boutique concentrates consistently rank as the top products sold in Nevada. For more information, please visit www.1933industries.com.
For further information please contact:
Alexia Helgason, VP, IR
604-728-4407
alexia@1933industries.com
Paul Rosen, CEO
paul@1933industries.com
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 the original press release on accesswire.com
FAQ
What is the amount 1933 Industries aims to raise through the private placement?
When is the expected closing date for the 1933 Industries private placement?
What will 1933 Industries use the proceeds from the private placement for?
What is the exercise price of the warrants included in the private placement units?
What are the offering terms for the 1933 Industries private placement units?
Where can prospective investors find more details on the 1933 Industries private placement?
What recent recognition did the AMA brand receive in Nevada?
What regulatory condition must be met for the closure of the private placement?
