1933 Industries and Day One Beverages Mutually Terminate Binding Letter of Intent
VANCOUVER, BC /ACCESSWIRE/May 11, 2022/ 1933 Industries Inc. (the “Company” or “1933 Industries“) (CSE:TGIF) (OTCQB:TGIFF), a Nevada-focused consumer packaged goods company, and Day One Beverages, Inc. (“Day one“) announce that they have mutually agreed to end their previously announced binding letter of intent (“Letter of Intent“) whereby 1933 Industries agreed to acquire 100% of all authorized and issued shares of Day One (see press release dated January 18, 2022).
The Company and Day One have agreed to terminate the Letter of Intent after determining that it is in each party’s best interests to continue to operate as independent companies. Day One will repay a loan made by 1933 Industries pursuant to the terms of the Letter of Intent in the amount of $482,571.24, including repayment of the outstanding principal balance, accrued interest and other accrued charges (the ” repayment of the loan). Loan repayment is due and payable in full by June 30, 2022. In addition, Day One will reimburse 1933 Industries for incurred costs of US$30,051.84, which are due by June 9, 2022. that it is intended to be a and final settlement of the terms of the letter of intent, if repayment of the loan is not made by June 30, 2022, the company will retain all of its rights under the letter of intent and the original loan agreement, including the right to convert the loan balance into Day One stock at a pre-negotiated Day One valuation of $4,500,000.
Mr. Paul Rosen, President and CEO of 1933 Industries, said: “Over the past several months, it has become apparent to both parties that day one capital requirements far exceed modeled projections, and with this update to date, both parties have concluded that it is in their respective best interests not to complete the transaction. We wish them the best of luck as they progress with their business, and we look forward to continued collaboration between the companies, including the continuation of our co-packing agreement for our best-selling rescue creams.”
About 1933 Industries Inc.
1933 Industries is a growth-oriented, Nevada-based company focused on growing and manufacturing a broad portfolio of packaged cannabis consumer products in a variety of formats for wholesale and retail markets. Its product offerings include: THC flower, pre-rolls and extract products under the AMA and Level X brands for the Nevada market; Canna Hemp™, national cannabidiol (CBD) brand of infused wellness products, including CBD tinctures, gummies, topicals, and sports recovery products. The Company owns 91% of Alternative Medicine Association, LC (AMA) and 100% of Infused MFG LLC (Infused).
About the Alternative Medicine Association
AMA is a licensed medical and adult-use cannabis cultivation and extraction subsidiary that produces its own line of unique cannabis products. AMA’s extensive menu of cannabis products includes: craft cannabis flowers, pre-rolls, full-spectrum oils, premium distillates, proprietary terpene blends, vaporizers, and boutique concentrates such as shatter, crumble, paste, sugar wax, diamonds and live resin. . The ultra-crafted Level X brand is an exclusive collection of exotic strains, selected specifically for their distinctive terpene profiles, high THC levels and flavonoids. With state-of-the-art cultivation and extraction facilities based in Las Vegas, Nevada, AMA seeks to provide medical patients and recreational users with an exceptional, potent and consistently high-quality cannabis experience. www.amanev.com
AMA is also licensed in Nevada as an adult cannabis distributor.
About Canna Hemp™
With an extensive product line that includes CBD topicals, CBD creams, CBD gummies, CBD vaporizers, CBD tinctures, CBD capsules, CBD sports recovery products before and after CBG and CBN tinctures and workouts, 1933 Industries’ exclusive Canna Hemp™ brand harnesses the power of cannabinoids extracted from hemp to provide natural wellness.
For more information, please contact:
Alexia Helgason, Vice President, IR, Marketing, Media
Paul Rosen, CEO
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 press release contains forward-looking statements relating to settlement transactions between the Company and Day One. Use of any of the words “anticipate”, “continue”, “estimate”, “expect”, “may”, “will”, “project”, “should”, “believe”, and similar aim to identify -looking statements. Although the Company believes that the expectations and assumptions on which forward-looking statements are based are reasonable, undue reliance should not be placed on forward-looking statements as the Company cannot guarantee that they will prove to be accurate. Because forward-looking statements address future events and conditions, they, by their very nature, involve inherent risks and uncertainties. These statements speak only as of the date of this press 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 publicly update or revise any forward-looking information, whether as a result of new information, future events or otherwise, except as required by law.
THE SOURCE: 1933 Industries Inc.
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