Mr. Paul Rosen reports

1933 INDUSTRIES ANNOUNCES THE CANCELLATION OF HISTORICAL DEBENTURES AND THE ISSUANCE OF NEW DEBENTURES

1933 Industries Inc. has issued a new 10 per cent senior unsecured convertible debenture (the new debentures). Further to the debentureholders' meeting held on Nov. 14, 2023, and the company's news release dated Jan. 1, 2024, the company reports that the 10 per cent senior unsecured convertible debentures with a maturity date of Dec. 31, 2023 (the historical debentures), have now been settled, excluding interest in arrears, through the issuance of $2,423,000 new debentures and cash payment of $41,000 to ineligible holders.

With a two-year maturity, the new debenture is convertible into units at a price of five cents per unit. Each unit comprised one common share of the company and one share purchase warrant. Each share purchase warrant is exercisable into one common share of the company at an exercise price of five cents for a period of five years from the date of issuance of the new debenture, subject to certain acceleration provisions. Until the maturity date, the company has the option to force the conversion of all the debentures if the daily volume weighted average trading price of the common shares on the Canadian Securities Exchange (or any other recognized Canadian stock exchange on which the common shares trade at the applicable time) is greater than seven cents for any 10 consecutive trading days. The new debentures will bear interest at a rate of 10 per cent per annum payable upon maturity, which will be payable either in cash or through the issuance of common shares (the interest shares) at a price of five cents per interest share, upon maturity. The new debentures will mature on the date which is two years from the date of issue.

The distribution of the new debentures was conducted pursuant to the company's Canadian base shelf prospectus dated Nov. 17, 2022. A prospectus supplement relating to the distribution was filed in the provinces of British Columbia, Alberta, Saskatchewan and Ontario. The base shelf prospectus and the prospectus supplement are available under the company's profile on SEDAR+.

About 1933 Industries Inc.

1933 Industries is a Nevada-based company, focusing on the cultivation and manufacturing of a large portfolio of cannabis consumer packaged goods in a variety of formats for both the wholesale and retail markets. Its product offerings through its in-house brands include: wholesale flower, prerolls and extracted products under the AMA and Level X brands for the Nevada market; and Canna Hemp, a national cannabidiol (CBD) brand of wellness products that includes tinctures, gummies, topicals and sports recovery products. The company owns 91 per cent of Alternative Medicine Association and 100 per cent of Infused.

We seek Safe Harbor.