1933 Industries Inc. (CVE:TGIF) said Wednesday it has entered into an agreement with Canaccord Genuity Corp. for a 'bought deal' private placement basis to raise aggregate gross proceeds of $3,500,200.
The group said Canaccord will buy for sale 31.82 million units of the company at a price of 11 cents per unit. Each unit will consist of one common share of the company and one common share purchase warrant. Each warrant will be exercisable to acquire one common share at an exercise price of 16 cents per common share for a period of 24 months from the closing of the offering, subject to a warrant acceleration right exercisable by the company.
The company said the net proceeds of the offering will be used for facility expansion and improvement and for general corporate purposes. The offering is anticipated to close on or about March 4, 2021, and all securities in the offering will be subject to a four-month-and-one-day hold period commencing on the closing date.
READ: 1933 Industries records C$1.4M in total sales and open orders for January
In a statement, Paul Rosen, chairman and chief executive officer of 1933 Industries commented: "This financing strengthens the balance sheet and positions the company for sustained growth in Nevada, where we will capitalize on market opportunities while continuing to execute on a disciplined approach to financial management."
The underwriters will also have the option, exercisable at any time prior to the closing date, to purchase an additional 13.64 million units at the issue price to raise additional gross proceeds of up to $1,500,400.
1933 Industries is a vertically integrated, growth-oriented company, focusing on the cultivation and manufacturing of cannabis consumer branded goods in a wide range of product formats. Operating through two subsidiaries, the company controls all aspects of the value chain with cultivation, extraction, processing and manufacturing assets supporting its diversified portfolio of cannabis brands and licensing partners. The company owns 91 per cent of Alternative Medicine Association LC (AMA) and 100 per cent of Infused MFG LLC.
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