1933 previously owned a 91% stake in Infused MFG Business, a Nevada-based firm that provides legal hemp-derived and cannabidiol (or CBD) products
Inc () (OTCMKTS:TGIFF) said Monday it has closed on its agreement to purchase the remaining 9% of its Infused MFG subsidiary, which it doesn’t already own, for almost C$1.25 million.
Infused MFG Business is a Nevada-based firm that provides legal hemp-derived and cannabidiol (or CBD) products, and 1933 Industries, formerly known as Friday Night, bought a 91% stake in the company in 2017.
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Under the deal’s terms, 1933 will pay Infused just under C$1.25 million by issuing a promissory note with a principal value of US$940,000 and a maturity date of December 1, 2019, as well as issuing 7 million shares at a deemed price of C$0.45.
The note will carry an interest rate of 6% per year and interest payments will be due on the first of each month until repaid.
The deal’s price also includes 1933's issuance of 1 million two-year warrants with a strike price of C$0.53.
READ: 1933 Industries' Canna HempX products featured in top mixed martial arts gym in Las Vegas
Headquartered in Vancouver, 1933 is a cannabis company with operations in the United States and Canada. Operating via three subsidiaries, 1933 owns licensed medical and recreational cannabis cultivation and production assets, hemp-based, CBD infused products, CBD extraction services and a specialized cannabis advisory firm.
In addition to its ownership of Infused MFG, the company owns 91% of Alternative Medicine Association and 100% of Spire Global Strategy.
1933 shares traded 2.2% higher to hit US$0.42 in OTC trading in New York on Monday and flat in Canadian trading at C$0.55.
Contact Ellen Kelleher at [email protected]