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VANCOUVER, March 15, 2019 /CNW/ - 1933 Industries Inc. (the "Company" or "1933 Industries") (CSE: TGIF) (OTCQX: TGIFF), a licensed cultivator and producer of cannabis flower and concentrates and manufacturer of hemp-derived CBD wellness products, is pleased to announce that it has closed its previously announced non-brokered private placement (the "Offering") which raised total proceeds to the Company of CDN$4.5 million.
Pursuant to the Offering, the Company issued 10,000,000 units (each a "Unit") at $0.45 per Unit. Each Unit consists of one common share (the "Share") and one common share purchase warrant (the "Warrant") of the Company. Each Warrant entitles the holder to purchase one Share at a price of CDN$0.50 per Share for a period of 24 months following today's closing date (the "Closing Date") of the Offering, subject to the Company's right to accelerate expiry in certain circumstances described below.
The Units shall be subject to a four month and one day hold period (the "Hold Period") commencing on the Closing Date. The Units were sold pursuant to private placement exemptions available in Canada.
If at any time following the Hold Period and prior to the expiry date of the Warrants, the Company may force the acceleration of the Warrants on less than 30 days' notice should the trading price of the Shares on the Canadian Securities Exchange be greater than $0.75 for any 10 consecutive trading days.
The net proceeds of the Offering will be used for general working capital. The Offering was fully subscribed by one placee, Mr. Paul Rosen.
"We are extremely pleased to welcome Paul as a strategic investor in the Company", said Mr. Brayden Sutton, President and CEO. "Paul has been involved with some of the most iconic cannabis businesses in Canada and across the world. As an industry veteran and visionary, Paul shares our view of the rising opportunities in the U.S. as more states develop regulations and open up cannabis markets."
"1933 Industries has an experienced and exceptional team of operators in an exciting and quickly expanding industry. The Company's business model incorporates cultivation, extraction, processing, manufacturing, branding, distribution, and ancillary services. There are only a handful of companies that have been able to accomplish this in a short period of time", commented Mr. Rosen. "There is a massive market opportunity in the U.S. cannabis industry and the Company is well positioned for growth."
Paul Rosen is a noted career entrepreneur, management consultant and public speaker. Over the last 6 years, he has become one of the most active entrepreneurs and investors in the emerging global cannabis industry. He is a co-founder of PharmaCan Capital Corp., and served as President and CEO for three years, following which the company underwent a corporate rebranding to become Cronos Group. Paul is a founder and former CEO & Chairman of Tidal Royalty Corporation and sits on the Boards of iAnthus Capital Holdings, Hill Street Beverages and High Tide Ventures.
About 1933 Industries Inc.
1933 Industries Inc. is a vertically integrated cannabis company with operations in the United States and Canada. Operating through three subsidiary companies, 1933 Industries owns licensed medical and adult-use cannabis cultivation and production assets, proprietary hemp-based, CBD infused products, CBD extraction services and a specialized cannabis advisory firm supporting clients in security, intelligence and due diligence. The Company owns 91% of both Alternative Medicine Association and Infused MFG. and 100% of Spire Global Strategy.
Please visit our website at http://www.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.
For further information: Alexia Helgason, Corporate Communications Director, 604-674-4756 (ext. 1, [email protected]; Brayden Sutton, Director/President & CEO, 604-674-4756 (ext. 1)