1933 Industries has announced the amended terms for acquiring the remaining 9% ownership stake in Alternative Medicine Association LC (AMA) from former senior officer Caleb Zobrist. The total purchase price is USD$50,000, split equally between USD$25,000 in cash and USD$25,000 in company shares (5,503,450 shares). The transaction, set to close on May 30, 2025, will result in FN Pharmaceuticals, a wholly owned subsidiary of 1933 Industries, owning 100% of AMA, the company's cultivation and production subsidiary. The shares issued will be subject to a hold period in Canada until October 1, 2025. The transaction qualifies as a "related party transaction" but is exempt from formal valuation and minority shareholder approval requirements due to its size relative to the company's market capitalization.
1933 Industries ha annunciato i termini modificati per l'acquisizione della restante quota del 9% di proprietà in Alternative Medicine Association LC (AMA) dall'ex dirigente Caleb Zobrist. Il prezzo totale di acquisto è di 50.000 USD, suddiviso equamente in 25.000 USD in contanti e 25.000 USD in azioni della società (5.503.450 azioni). L'operazione, che si concluderà il 30 maggio 2025, porterà FN Pharmaceuticals, una controllata al 100% di 1933 Industries, a detenere il 100% di AMA, la controllata dedicata alla coltivazione e produzione dell'azienda. Le azioni emesse saranno soggette a un periodo di blocco in Canada fino al 1° ottobre 2025. L'operazione è classificata come una "transazione con parti correlate", ma è esente dai requisiti di valutazione formale e di approvazione da parte degli azionisti di minoranza, a causa della sua dimensione rispetto alla capitalizzazione di mercato della società.
1933 Industries ha anunciado los términos modificados para adquirir la participación restante del 9% en Alternative Medicine Association LC (AMA) del ex alto ejecutivo Caleb Zobrist. El precio total de compra es de 50,000 USD, dividido por igual entre 25,000 USD en efectivo y 25,000 USD en acciones de la empresa (5,503,450 acciones). La transacción, que se cerrará el 30 de mayo de 2025, hará que FN Pharmaceuticals, una subsidiaria propiedad total de 1933 Industries, posea el 100% de AMA, la subsidiaria de cultivo y producción de la compañía. Las acciones emitidas estarán sujetas a un período de retención en Canadá hasta el 1 de octubre de 2025. La transacción califica como una "transacción con partes relacionadas", pero está exenta de los requisitos formales de valoración y aprobación de accionistas minoritarios debido a su tamaño en relación con la capitalización de mercado de la empresa.
1933 Industries는 전 고위 임원 Caleb Zobrist로부터 Alternative Medicine Association LC(AMA)의 남은 9% 지분 인수를 위한 수정된 조건을 발표했습니다. 총 매입 가격은 50,000 USD이며, 현금 25,000 USD와 회사 주식 25,000 USD(5,503,450주)로 균등하게 나뉩니다. 이 거래는 2025년 5월 30일에 완료될 예정이며, 1933 Industries의 전액 출자 자회사인 FN Pharmaceuticals가 AMA의 100% 지분을 보유하게 됩니다. 발행된 주식은 2025년 10월 1일까지 캐나다에서 보유 기간이 적용됩니다. 이 거래는 "특수 관계자 거래"에 해당하지만, 회사 시가총액 대비 규모로 인해 공식 평가 및 소수 주주 승인 요건은 면제됩니다.
1933 Industries a annoncé les conditions modifiées pour l'acquisition des 9 % restants de participation dans Alternative Medicine Association LC (AMA) auprès de l'ancien cadre supérieur Caleb Zobrist. Le prix d'achat total s'élève à 50 000 USD, réparti également entre 25 000 USD en espèces et 25 000 USD en actions de la société (5 503 450 actions). La transaction, qui doit être finalisée le 30 mai 2025, entraînera la possession à 100 % d'AMA par FN Pharmaceuticals, une filiale en propriété exclusive de 1933 Industries, filiale de culture et de production de l'entreprise. Les actions émises seront soumises à une période de blocage au Canada jusqu'au 1er octobre 2025. La transaction est qualifiée de « transaction avec une partie liée », mais est exemptée des exigences formelles d'évaluation et d'approbation des actionnaires minoritaires en raison de sa taille relative à la capitalisation boursière de l'entreprise.
1933 Industries hat die geänderten Bedingungen für den Erwerb des verbleibenden 9%-Anteils an der Alternative Medicine Association LC (AMA) vom ehemaligen leitenden Angestellten Caleb Zobrist bekannt gegeben. Der Gesamtkaufpreis beträgt 50.000 USD, aufgeteilt in jeweils 25.000 USD in bar und 25.000 USD in Unternehmensaktien (5.503.450 Aktien). Die Transaktion, die am 30. Mai 2025 abgeschlossen wird, führt dazu, dass FN Pharmaceuticals, eine hundertprozentige Tochtergesellschaft von 1933 Industries, 100% von AMA hält, der Anbau- und Produktions-Tochtergesellschaft des Unternehmens. Die ausgegebenen Aktien unterliegen in Kanada bis zum 1. Oktober 2025 einer Haltefrist. Die Transaktion gilt als "Geschäft mit nahestehenden Parteien", ist jedoch aufgrund ihrer Größe im Verhältnis zur Marktkapitalisierung des Unternehmens von formellen Bewertungs- und Minderheitsaktionärszustimmungsanforderungen ausgenommen.
Positive
Consolidation of 100% ownership in AMA cultivation and production subsidiary
Low acquisition cost of USD$50,000 with 50% paid in shares
Transaction exempt from formal valuation requirements, simplifying the process
Negative
Share issuance of 5,503,450 shares will cause minor dilution
Shares subject to hold period until October 1, 2025
VANCOUVER, BC / ACCESS Newswire / May 22, 2025 / 1933 Industries Inc. (the "Company" or "1933 Industries") (CSE:TGIF)(OTC PINK:TGIFF), a Nevada-focused cannabis cultivator and producer, is pleased to announce that the Membership Interest Purchase Agreement (the "MIPA") entered into by its wholly owned subsidiary, FN Pharmaceuticals, and Mr. Caleb Zobrist (the "Seller") to acquire his nine percent (9%) of the issued and outstanding membership interests of Alternative Medicine Association LC ("AMA") has been amended (refer to news release dated April 8, 2024).
Under the amended terms of the MIPA, the purchase price (the "Purchase Price") for the Membership is a total of USD$50,00, payable to the Seller USD$25,000 in cash and USD$25,000 through the issuance of shares of common stock of 1933 Industries (the "Shares"). The final number of Shares to be issued to the Seller is 5,503,450 as determined via the 10 day VWAP price of the Shares on November 27, 2024, being the date the transactions contemplated by the MIPA (the "Transaction") were approved by the Nevada Cannabis Compliance Board.
The Shares are subject to a hold period in Canada expiring on October 1, 2025. Additional restrictions will apply pursuant to the Securities Act of 1933, as amended.
The parties have set the closing date for the Transaction as May 30, 2025. With the completion of the MIPA, FN Pharmaceuticals owns 100% of the membership interest in AMA, the Company's cultivation and production subsidiary.
As Mr. Zobrist was a senior officer of the Company at the time the MIPA was entered into, he is a "related party" to the Company within the meaning of Multilateral Instrument 61-101- Protection of Minority Security Holders in Special Transactions ("MI 61-101"). As such, the transaction constitutes a "related party transaction" within the meaning of MI 61-101.
The Company intends to rely on exemptions from formal valuation and the minority shareholder approval requirements of MI 61-101 found in sections 5.5(a) and 5.7(1)(a) of MI 61-101 as the fair market value of the transaction does not constitute more than the 25% of the Company's market capitalization.
About 1933 Industries Inc.
1933 Industries is a Nevada-based licensed wholesale producer, focused on the cultivation and extraction of a large portfolio of cannabis consumer products in a variety of formats under its flagship brands, Alternative Medicine Association (AMA) and Level X. Its product offerings are cultivated at the Company's 68,000 sq. ft. indoor facility and marketed directly to retail dispensaries. AMA branded flower, infused pre-rolls, and in-house boutique concentrates consistently rank as the top products sold in Nevada. For more information, please visit www.1933industries.com
For further information please contact: Alexia Helgason, VP, Investor Relations 604-728-4407 alexia@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.
What is the purchase price for the 9% stake in AMA that TGIFF is acquiring?
The total purchase price is USD$50,000, consisting of USD$25,000 in cash and USD$25,000 in company shares (5,503,450 shares).
When will TGIFF complete the acquisition of the remaining 9% stake in AMA?
The closing date for the transaction is set for May 30, 2025.
How many shares will TGIFF issue for the AMA stake purchase?
TGIFF will issue 5,503,450 shares, worth USD$25,000, based on the 10-day VWAP price as of November 27, 2024.
What percentage of AMA will TGIFF own after completing this transaction?
After completing the transaction, FN Pharmaceuticals, a wholly owned subsidiary of 1933 Industries, will own 100% of AMA.
Why is this considered a related party transaction for TGIFF?
It's considered a related party transaction because the seller, Caleb Zobrist, was a senior officer of the company when the agreement was entered into.
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