1933 Industries Signs Definitive Agreement to Purchase Remaining 9% of Subsidiary Ama Production LLC
1933 Industries Inc. (the “Company” or “1933 Industries”) (CSE:TGIF)(OTCQX:TGIFF), a vertically-integrated cannabis consumer packaged goods company with a diverse portfolio of consumer-driven brands, is pleased to announce that it has signed a Membership Interest Purchase Definitive Agreement (the “Agreement”) among the Company, its subsidiary FN Pharmaceuticals, E. Mark Zobrist and Linmark Enterprises Corp., to purchase the remaining 9% interest in AMA Production LLC thereby resulting in the Company’s 100% ownership of the subsidiary which contains the property located at 5035 Geist Ave., Las Vegas, Nevada.
Subject to the terms of the Agreement, in consideration of the acquisition of the remaining 9%, the Company will issue, in the aggregate, 3,700,000 non-transferable share purchase warrants, exercisable at a price of $0.075 per share expiring on June 13, 2024. The warrants, and any shares exercised pursuant to the warrants, will be subject to a four month and one day hold period as required by applicable securities laws in Canada and such additional restrictions as may be applicable pursuant to U.S. securities laws.
As part of the transaction, a total of 1,650,000 outstanding warrants and 2,050,000 options will be cancelled, and the operating agreement for Alternative Medicine Association LC (“AMA”) will be amended to concede complete managerial control of AMA to the Company.
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Mr. Paul Rosen, CEO of 1933 Industries, stated, “This is another step towards putting 1933 Industries on solid footing as it continues to progress on its key initiatives. The Agreement provides the Company with additional operating flexibility, which, alongside the most recent capital raises, the successful amendments to the Company’s convertible debentures and the continuing increases to our cultivation capacity, moves us forward towards our goal of achieving profitability.”
The Agreement is subject to the regulatory approvals, including the approval of the Canadian Securities Exchange, as applicable. The closing date is expected to take place on or around November 6, 2020.
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. The Company owns 91% of Alternative Medicine Association, LC (AMA), and 100% of Infused MFG LLC.
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-based products and manufactures third-party brands. 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.
About Canna Hemp™
With an extensive product line that includes topicals, creams, vapes, elixirs, capsules, dabs, lip balms and pre and post workout recovery sports products, 1933 Industries’ proprietary Canna Hemp™ brand utilizes the power of hemp and CBD to bring natural wellness. The Company’s flagship products, the Canna Hemp™ Relief Cream and Canna Hemp X™ Recovery Cream are recognized as best topicals in the market. Canna Hemp X™ is a CBD sports recovery cream for athletes, bridging the gap between recovery and top performance. All products are triple and third-party tested for safety with test results embedded via QR codes for traceability.
For further information please contact:
Alexia Helgason, VP, IR and Corporate Communications
604-674-4756 (ext. 1)
alexia@1933industries.com
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.
SOURCE: 1933 Industries Inc.
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https://www.accesswire.com/614663/1933-Industries-Signs-Definitive-Agreement-to-Purchase-Remaining-9-of-Subsidiary-Ama-Production-LLC
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