The Vancouver-based company said it will close the placement on November 3 by offering 13,920,000 units at a price of C$0.066 for gross proceeds of C$918,720
1933 Industries Inc () (), a vertically-integrated cannabis consumer packaged goods company, announced on Monday that it will close a non-brokered private placement for C$918,720 this week to raise working capital and refocus the firm’s business strategy on its core market of Nevada.
The Vancouver, British Columbia-based company said it will close the placement on November 3 by offering 13,920,000 units at a price of C$0.066 for gross proceeds of C$918,720.
The company said each unit consists of one share and one transferable share purchase warrant. Each warrant entitles the holder to buy one share at an exercise price of C$0.106 per unit for a period of 18 months from the closing date.
READ: 1933 Industries’ premium Canna Hemp brand of CBD products now available in most of the US
The units shall be subject to a four month and one day hold period, expiring on March 4, 2021.
In a statement, 1933 Industries CEO Paul Rosen said, "We are pleased to raise additional capital for the company as we continue to refocus our business strategy in our core market of Nevada. Our key priorities have been and will continue to be attaining profitability in the foreseeable future.”
He added: “We are strengthening the distribution for all our branded products, as our Canna Hemp CBD line enters new channels via CBD Plus and Mr Checkout across the US, and as we bring new THC products to market in Las Vegas.”
Rosen said he see 1933 Industries developing a “dominant position” in Nevada with “paid-up infrastructure, quality, premium products and the continuous buildup of our brands."
The offering is subject to certain conditions including, but not limited to, the receipt of all necessary regulatory and stock exchange approvals.
The company said all proceeds were raised and paid in US dollars and the warrant exercise price is also payable in US dollars. As a result, actual Candian dollar equivalents received may vary depending on the foreign exchange rate.
1993 Indutries operating through two subsidiaries, and has a diversified portfolio of cannabis brands and licensing partners. It owns 91% of Alternative Medicine Association LC (AMA), and 100% of Infused MFG LLC.
Contact the author Uttara Choudhury at [email protected]
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