1933 Industries Inc (CSE:TGIF) (OTCQX:TGIFF) announced Thursday it has signed an agreement to purchase the remaining 9% interest in AMA Production LLC, giving it 100% ownership, which includes a property in Las Vegas.
Subject to the terms of the agreement, 1933 Industries said it will issue 3.7 million non-transferable share purchase warrants exercisable at $0.075 each and expiring on June 13, 2024.
As part of the transaction, 1933 Industries said a total of 1,650,000 outstanding warrants and 2,050,000 options will be cancelled, and the operating agreement for Alternative Medicine Association LLC (AMA) will be amended to concede complete managerial control of AMA to 1993 Industries.
READ: 1933 Industries to close C$918,720 private placement to help refocus business strategy on Nevada
“This is another step towards putting 1933 Industries on solid footing as it continues to progress on its key initiatives,” said CEO Paul Rosen in a statement. “The Agreement provides the Company with additional operating flexibility, which, alongside the most recent capital raises, the successful amendments to the Company’s convertible debentures and the continuing increases to our cultivation capacity, moves us forward towards our goal of achieving profitability.”
Included in the agreement is 1933 Industries’ subsidiary FN Pharmaceuticals, as well as E. Mark Zobrist and Linmark Enterprises Corp.
The agreement is subject to regulatory approvals, including the approval of the Canadian Securities Exchange, as applicable. The closing date is expected to take place on or around November 6.
The warrants and any shares exercised pursuant to the warrants, will be subject to a four-month and one-day hold period.
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