NR1933 Industries Signs Definitive Agreement to Purchase Remaining 9% of Subsidiary AMA Production LLC VANCOUVER, B.C., CANADA (November 5, 2020) – 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.
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.”