1933 Industries Announces C$3.5 Million Bought Deal Private Placement of Units
1933 Industries is pleased to announce that it has entered into an agreement with Canaccord Genuity Corp. (“Canaccord Genuity” or the “Lead Underwriter”) pursuant to which the Lead Underwriter agrees to purchase, on a bought deal private placement basis, 31,820,000 units of the Company (the “Units”) at a price of C$0.11 per Unit (the “Issue Price”) for aggregate gross proceeds of C$3,500,200 (the “Offering”).
Each Unit will consist of one common share of the Company (a “Common Share”) and one Common Share purchase warrant (a “Warrant”). Each Warrant will be exercisable to acquire one Common Share at an exercise price of C$0.16 per Common Share (the “Exercise Price”) for a period of 24 months from the closing of the Offering, subject to a Warrant acceleration right exercisable by the Company if, at any time following the date that is four months and one day from the Closing Date, the daily volume weighted average trading price of the Company’s common shares on the Canadian Securities Exchange (the “CSE”) is greater than C$0.30 for the preceding 10 consecutive trading days.
The net proceeds of the Offering will be used for facility expansion and improvement and for general corporate purposes. The Offering is anticipated to close on or about March 4, 2021 (the “Closing Date”). Pursuant to Canadian securities laws, all securities in respect of the Offering will be subject to a four month and one day hold period commencing on the Closing Date.
Mr. Paul Rosen, Chairman and CEO of 1933 Industries, stated, “This financing strengthens the balance sheet and positions the Company for sustained growth in Nevada, where we will capitalize on market opportunities while continuing to execute on a disciplined approach to financial management”.
Upon closing of the Offering, the Company has agreed to (i) pay the Lead Underwriter a cash commission equal to 7% of the aggregate gross proceeds of the Offering payable in cash or in Units, at the option of the Lead Underwriter in its sole discretion and (ii) issue to the Lead Underwriter warrants (the “Broker Warrants”) exercisable at any time prior to the date that is 24 months from the closing of the Offering to acquire a number of Units which is equal to 7.0% of the aggregate number of Units issued pursuant to the Offering, at an exercise price equal to the Issue Price. The Underwriters will have the option, exercisable at any time prior to the Closing Date, to purchase an additional 13,640,000 Units at the Issue Price to raise additional gross proceeds of up to C$1,500,400.
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.
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.
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 and manufactures third-party brands. 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. 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
About Canna Hemp™
With an extensive product line that includes topicals, creams, vapes, elixirs, capsules, lip balms and pre and post workout recovery sports products, 1933 Industries’ proprietary Canna Hemp™ brand utilizes the power of 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.
www.cannahemp.com
