1933 Industries Accelerates Warrant Conversion
VANCOUVER, March 5, 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, announces that it is accelerating the expiry of certain private placement common share purchase warrants (the "Warrants") bearing an expiry date of April 24, 2019, May 17, 2019 and June 14, 2019.
The Outstanding Warrants will expire on April 4, 2019, and any Warrants not surrendered for exercise on or before 5:00 PM PST on April 4, 2019 will expire unexercised and become null and void.
Pursuant to the terms of the Warrants, the Company may force the conversion of the Warrants at the conversion price of $0.30 per common share when the closing price of the common shares on the Canadian Securities Exchange exceeds $0.50 for a period of 10 consecutive trading days. As of close of markets on March 1, 2019, the closing price of the common shares had been $0.50 or greater for the requisite period. The Company is hereby providing Warrant holders with 30 days' notice via this news release that the expiry date has been accelerated.
The Company also announces that it intends to accelerate the expiry of Warrants bearing an expiry date of August 16, 2019 and October 4, 2019.
Pursuant to the terms of the Warrants bearing an expiry date of August 16, 2019 and October 4, 2019, the Company may force the conversion of the Warrants at the conversion price of $0.35 and $0.25 respectively, per common share when the daily volume weighted average ("VWAP") closing price of the common shares on the Canadian Securities Exchange exceeds $0.50 for a period of 10 consecutive trading days. As of close of markets on March 1, 2019, the VWAP of the common shares had been $0.50 or greater for the requisite period.
The Company also intends to send notice to the holders of the Warrants expiring on August 16, 2019 and October 4, 2019, respectively, advising of its intent to accelerate the expiry date. Such written notice to Warrant holders will be sent by the Company's warrant agent, Computershare Trust Company or the Company directly, as the case may be, to the Warrant holders at their last known address. As a result, those Warrants will have an expiry date of 30 days from the date of such written notice and will become null and void thereafter.
The Company also intends to send notice to its debenture holders with a maturity date of August 16, 2019, advising the debenture holders of its intent to force conversion of the balance of the debenture into common shares. The Company anticipates extinguishing approximately $1.1 million dollars of debt pursuant to the debenture. Upon conversion, the Company will pay to accrued interest to the debenture holders.
The Company reminds holders of Warrants expiring on March 22, 2019 of the approaching deadline.
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.