1933 Industries Announces the Cancellation of Historical Debentures and the Issuance of New Debentures

Rhea-AI Summary

1933 Industries Inc. issues new 10% Senior Unsecured Convertible Debentures, settling Historical Debentures. The New Debentures are convertible into units at $0.05 per unit, with a two-year maturity. The Company has the option to force conversion if stock price conditions are met. Interest on the New Debentures is 10% per annum, payable in cash or Common Shares at $0.05 per Interest Share.

VANCOUVER, BC / ACCESSWIRE / February 29, 2024 / 1933 Industries Inc. (the "Company" or "1933 Industries") (CSE:TGIF)(OTCQB:TGIFF), a Nevada-focused cannabis cultivator and producer, is pleased to announce the issuance of a new 10% Senior Unsecured Convertible Debenture (the "New Debentures"). Further to the Debentureholders' Meeting held on November 14, 2023, and the Company's news release dated January 1, 2024, the Company reports that the 10% Senior Unsecured Convertible Debentures with a maturity date of December 31, 2023 (the "Historical Debentures"), have now been settled, excluding interest in arrears, through the issuance of $2,423,000 New Debentures and cash payment of $41,000 to ineligible holders.

With a two-year maturity, the New Debenture is convertible into units at a price of $0.05 per unit. Each unit is comprised of one common share of the Company and one share purchase warrant. Each share purchase warrant is exercisable into one common share of the Company at an exercise price of $0.05 for a period of five years from the date of issuance of the New Debenture, subject to certain acceleration provisions. Until the maturity date, the Company has the option to force the conversion of all the Debentures if the daily volume weighted average trading price of the Common Shares on the Canadian Securities Exchange (or any other recognized Canadian stock exchange on which the Common Shares trade at the applicable time) is greater than $0.07 for any 10 consecutive trading days. The New Debentures will bear interest at a rate of 10% per annum payable upon maturity, which will be payable either in cash or through the issuance of Common Shares (the "Interest Shares") at a price of $0.05 per Interest Share, upon maturity. The New Debentures will mature on the date which is two years from the date of issue.

The distribution of the New Debentures was conducted pursuant to the Company's Canadian base shelf prospectus dated November 17, 2022 (the "Base Shelf Prospectus"). A prospectus supplement (the "Prospectus Supplement") relating to the distribution was filed in the provinces of British Columbia, Alberta, Saskatchewan, and Ontario. The Base Shelf Prospectus and the Prospectus Supplement are available under the Company's profile on SEDAR at www.sedar.com.

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

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 type of debentures did 1933 Industries Inc. issue?

1933 Industries Inc. issued new 10% Senior Unsecured Convertible Debentures.

What was the settlement for the Historical Debentures?

The Historical Debentures were settled through the issuance of $2,423,000 New Debentures and a cash payment of $41,000 to ineligible holders.

At what price are the New Debentures convertible into units?

The New Debentures are convertible into units at a price of $0.05 per unit.

What is the maturity period for the New Debentures?

The New Debentures have a two-year maturity period.

Under what conditions can the Company force the conversion of the Debentures?

The Company can force the conversion if the stock price exceeds $0.07 for 10 consecutive trading days.

What is the interest rate on the New Debentures?

The New Debentures will bear interest at a rate of 10% per annum.

Where can the Base Shelf Prospectus and Prospectus Supplement be found?

The Base Shelf Prospectus and Prospectus Supplement are available on SEDAR at www.sedar.com.