1933 Industries Announces CDN$918,720 Private Placement
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VANCOUVER, BC, Nov. 2, 2020 /CNW/ - 1933 Industries Inc. (the "Company" or "1933 Industries") (CSE: TGIF) (OTCQX: TGIFF), a vertically-integrated cannabis consumer packaged goods company, is pleased to announce that it will close a non-brokered private placement financing (the "Offering" or the "Units") on November 3, 2020 (the "Closing Date"). The Offering will consist of the issuance of 13,920,000 Units at a price of US$0.05 (CDN$0.066), for gross proceeds of US$696,000 (CDN$918,720)*.
Each Unit is comprised of one common share of the Company (each a "Common Share"), and one transferable share purchase warrant (a "Warrant"). Each Warrant entitles the holder to acquire one Common Share at an exercise price of US $0.08 (CDN$0.106) per Unit for a period of 18 months from the Closing Date.
The Units shall be subject to a four month and one day hold period, expiring on March 4, 2021. The Units are sold pursuant to private placement exemptions available in Canada and certain foreign jurisdictions.
The net proceeds of the Offering will be used for general working capital.
Mr. Paul Rosen, CEO of 1933 Industries said, "We are pleased to raise additional capital for the Company as we continue to refocus our business strategy in our core market of Nevada. Our key priorities have been and will continue to be attaining profitability in the foreseeable future. We are strengthening the distribution for all our branded products, as our Canna Hemp™ CBD line enters new channels via CBD Plus and Mr. Checkout across the US, and as we bring new THC products to market in Las Vegas. We see 1933 Industries developing a dominant position in Nevada with paid-up infrastructure, quality, premium products and the continuous buildup of our brands."
The Units will be sold pursuant to private placement exemptions available in Canada and certain foreign jurisdictions. The Offering is subject to certain conditions including, but not limited to, the receipt of all necessary regulatory and stock exchange approvals, including the approval of the CSE. The securities have not been and will not be registered under the United States Securities Act of 1933, as amended ("U.S. Securities Act") or any state securities law and may not be offered or sold in the United States unless registered under the U.S. Securities Act and applicable state securities laws or an exemption from such registration is available.
*All proceeds were raised and paid in US dollars. The warrant exercise price is also payable in US dollars. As a result, actual CDN equivalents received may vary having regard for the current foreign exchange rates.
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.
This news release does not constitute an advertisement or a solicitation to the public of any offer to subscribe for or purchase any securities in the Company or constitutes an offer to sell or a solicitation to buy any of the securities in the United States. The securities have not been and will not be registered under the United States Securities Act of 1933, as amended ("U.S. Securities Act") or any state securities law and may not be offered or sold in the United States unless registered under the U.S. Securities Act and applicable state securities laws or an exemption from such registration is available.
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.
Alexia Helgason, VP, IR and Corporate Communications, 604-674-4756 (ext. 1), [email protected]; Paul Rosen, CEO, 604-674-4756 (ext. 1)
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