1933 Industries Announces Results of Extraordinary Meeting of Debentureholders

Rhea-AI Summary

1933 Industries Inc. (CSE:TGIF)(OTCQB:TGIFF) held an extraordinary meeting for holders of its 10% Senior Unsecured Convertible Debentures due September 14, 2022. Debentureholders voted on four proposed amendments, of which only one, regarding forced conversion price, was accepted. With only 18.7% of debentureholders participating, the company believes higher voter turnout could have led to acceptance of other amendments. The Board unanimously recommended the changes, considering them beneficial for shareholders. Further actions are under consideration by the Board.

Positive

• Only one amendment regarding forced conversion price was accepted, potentially providing better terms for future conversions.

Negative

• Three proposed amendments did not pass due to low voter turnout, indicating shareholder disengagement.
• Only 18.7% of debentureholders participated, which may hinder necessary financial adjustments.

VANCOUVER, BC / ACCESSWIRE / July 14, 2022 / 1933 Industries Inc. (the "Company" or "1933Industries") (CSE:TGIF)(OTCQB:TGIFF), a Nevada-focused cannabis consumer packaged goods company, announces the results of the extraordinary meeting of Holders of 10% Senior Unsecured Convertible Debentures Due September 14, 2022 ("Debentureholders") held yesterday.

Debentureholders voted on the following proposed amendments:

1. Revising the proposed amended conversion price applicable to the Debentures to $0.05 per share, being the lowest price at which the Company is permitted to amend the Conversion Price

• Votes for 62.482% or 428,000 shares
• Votes against 37.518% or 257,000 shares
• The amendment did not pass.

2. Revising the proposed extended maturity date for the Debentures to December 31, 2022

• Votes for 55.182% or 378,000
• Votes against 44.818% or 307,000
• The amendment did not pass.

3. Reducing the price per share for interest payments on the Debentures from $0.10 to $0.075 per share

• Votes for 62.482% or 428,000 shares
• Votes against 37.518% or 257,000 shares
• The amendment did not pass.

4. Amending the price at which the Company may require a forced conversion of the Debentures from $0.15 to $0.10 per share, such conversion to be made at the amended Conversion Price of $0.05 per share

• Votes for 69.781% or 478,000 shares
• Votes against 30.219% or 207,000
• The amendment was accepted by Debentureholders.

The amendments required an affirmative vote of at least 66 ⅔% of the principal amount of the debentures voted at the meeting. The total votes represented at the meeting accounted for only 18.7% of the outstanding debentures. The Company believes that with a stronger voter turnout, all the proposed amendments would have been accepted by Debentureholders. The Board of Directors had unanimously recommended that Debentureholders vote in favour of each of the amendments as it believes they are in the best interest of its shareholders. The Board of Directors is currently considering further options and will advise shortly.

About 1933 Industries Inc.

1933 Industries is a Nevada-based, growth-orientated 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 include: THC flower, pre-rolls, and extracted products under the AMA and Level X brands for the Nevada market; Canna Hemp™, national cannabidiol (CBD) brand of infused wellness products including CBD tinctures, gummies, topicals and sport recovery products. The Company owns 91% of Alternative Medicine Association, LC (AMA) and 100% of Infused MFG LLC (Infused).

www.1933industries.com

About Alternative Medicine Association

AMA is a licensed medical and adult-use cannabis cultivation and extraction subsidiary that produces its own branded line of unique cannabis products. AMA's extensive menu of cannabis products include: craft cannabis flower, pre-rolls, full spectrum oils, high quality distillates, proprietary blends of terpenes, vaporizer products and boutique concentrates such as shatter, crumble, batter, sugar wax, diamonds, and live resin. Ultra-craft brand Level X is an exclusive collection of exotic strains, selected specifically for their distinctive terpene profiles, high THC levels, and flavonoids. With state-of-the-art cultivation and extraction facilities based in Las Vegas, Nevada, AMA seeks to offer medical patients and recreational users alike a cannabis experience that's exceptional, potent, and consistent in quality. www.amanev.com

AMA is also licensed in Nevada as an adult-use cannabis distributor.

About Canna Hemp™

With over 50 products in its portfolio, the Canna Hemp™ brand offers products in a variety of verticals and consumption formats, including, effects-based tinctures, topicals, vape pens and cartridges, gummies, and capsules for Sleep, Relief, Calm, Focus and Energy. High-grade CBD and a proprietary blend of terpenes formulated for specific effects are key differentiators for the Canna Hemp™ line. The Company recently introduced previously untapped cannabinoids Cannabigerol (CBG) and Cannabinol (CBN) to its portfolio of products with a new line of natural tinctures and gummies.

www.cannahemp.com

For further information please contact:

Alexia Helgason, VP, IR, Marketing, Media
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 relating to the settlement of transactions between the Company and Day One. 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/708640/1933-Industries-Announces-Results-of-Extraordinary-Meeting-of-Debentureholders

FAQ

What amendments were proposed by 1933 Industries for its convertible debentures on July 14, 2022?

The proposed amendments included changes to the conversion price, maturity date, interest payment price, and forced conversion price.

Did the amendments to the debentures pass during the July 14, 2022 meeting?

Only the amendment regarding the forced conversion price was accepted; the other amendments did not pass.

What was the voter turnout at the extraordinary meeting of debentureholders on July 14, 2022?

The voter turnout was only 18.7% of the outstanding debentures.

What is the significance of the accepted amendment for 1933 Industries?

The accepted amendment may provide better terms for forced conversions of debentures, potentially benefiting the company's financial flexibility.

What does the low turnout at the debentureholders' meeting imply for 1933 Industries?

The low turnout suggests shareholder disengagement, which could complicate future financial adjustments and decision-making.