Mr. Paul Rosen reports
1933 INDUSTRIES ANNOUNCES C$3.5 MILLION BOUGHT DEAL PRIVATE PLACEMENT OF UNITS
1933 Industries Inc. has entered into an agreement with Canaccord Genuity Corp. pursuant to which the lead underwriter agrees to purchase, on a bought deal private placement basis, 31.82 million units of the company at a price of 11 cents per unit for aggregate gross proceeds of $3,500,200.
Each unit will consist of one common share of the company and one common share purchase warrant. Each warrant will be exercisable to acquire one common share at an exercise price of 16 cents per common share 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 is greater than 30 cents 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. 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.
Paul Rosen, chairman and chief executive officer 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 per cent 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 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 are equal to 7.0 per cent 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 13.64 million units at the issue price to raise additional gross proceeds of up to $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.
About 1933 Industries Inc.
1933 Industries is a vertically integrated, growth-oriented 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 per cent of Alternative Medicine Association LC (AMA) and 100 per cent of Infused MFG LLC.
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