1933 Industries Provides a Year in Review

1933 Industries Inc. (CSE:TGIF) (OTCQX:TGIFF) (the “Company” or “1933 Industries”) a licensed cultivator and producer of hashish flower and concentrates and producer of hemp/CBD merchandise in Nevada, Colorado and California, studies that the Company has made important progress throughout its first 12 months of operations.

“The Company delivered key milestones over the year and continues to execute on its business strategy. Our strong financial results of $12.6 million in sales revenue for our fiscal year 2018 are a testament of our sound operational management and diligent business practices as we continue to build a solid foundation for the future”,  mentioned Mr. Brayden Sutton, President and CEO of 1933 Industries.

Mr. Sutton added, “We had a number of key priorities that we were able to deliver on: infrastructure build-out and expansion of wholesale capacity to meet increasing demand; growing and strengthening our product pipeline; increasing sales revenue quarter to quarter; and building a world-class team. I am pleased to report that we made excellent progress on all priorities.”

Consistent Sales Revenue Growth

1933 Industries skilled sturdy quarterly progress fueled by growing demand for its hashish merchandise in the States of Nevada, California and Colorado.

First-Mover Advantage in the Medicinal and Adult-use Cannabis Market in Nevada

The Company’s 91% curiosity in Alternative Medicine Association (“AMA”), Las Vegas’ authentic licensed cultivator of medicinal hashish, reported sturdy gross sales income in 2018. The Company’s enterprise mannequin relies on servicing present medical hashish sufferers in Nevada as properly new adult-use leisure shoppers. With an estimated 45 million guests to Las Vegas every year, there’s demonstrable potential for Nevada to change into the world’s high canna-tourism vacation spot. AMA has established an aggressive presence and picture for its distinctive branded flower and extraction merchandise. The 12 months’s highlights embody:

• Continued an unique licensing settlement with the enduring Hip-Hop Artist Kurupt to provide The Real Kurupts Moon Rocks.
• Signed a licensing deal to provide Denver Dab Company’s line of distinctive merchandise.
• Expanded product line to over 100 SKUs comparable to flower, pre-rolls and concentrates on the market via licensed dispensaries in Nevada, with extra merchandise in the pipeline for 2019.

Hemp-Derived and CBD-Infused Wellness Line of Products

The Company additionally owns 91% of Infused MFG. (“Infused”), which continues to construct out and improve the attain of its suite of branded merchandise.  The 12 months’s highlights embody:

• Established key distribution networks in California, the place it now sells its merchandise in over 100 retail outlets.
• Sales to over 400 retail places across the U.S.
• Signed a licensing settlement and partnership with skilled skateboarder and Grizzly Griptape LLC. founder Tory Pudwill, to advertise “Canna Hemp X™”, a CBD-infused restoration cream, focusing on the quickly rising restoration market.
• Signed a licensing settlement with Scotty Nguyen for the launch of Canna Hemp™ branded merchandise co-marketed underneath his identify.
• Signed a licensing settlement with Denver Dab Company to fabricate and distribute Canna Hemp™ CBD and hemp-based merchandise on an unique foundation to retail hashish dispensaries in Colorado.
• Expanded its personal line of CBD merchandise particular to the pet trade and launched “Canna Hemp™ Paws”.
• Launched Canna Fused™, a 1:1 CBD/THC-infused product line in partnership with Denver Dab Company.

Acquisition of Leading Cannabis Advisory Service Provider

1933 Industries entered the rising hashish safety and intelligence area with the strategic acquisition of Spire Global Strategy, which gives service choices, on a confidential foundation, to the hashish sector together with:

• International manufacturing, gross sales, and import/export licensing agreements
• Domestic licensing purposes
• Public coverage growth
• Design and growth of large-scale hemp, hashish, and CBD tasks for third events
• Risk and resilience administration and investigative due diligence
• Physical safety and power safety

Sales, Marketing and Brand Development

The Company has developed complete media relations and advertising packages to create visibility, consciousness and drive gross sales for its hashish manufacturers.

• Increasing gross sales achieved by providing a broad vary of high quality merchandise at competitive costs and delivered via excellent consumer service underneath a properly recognized model
• Focused on high-quality branded merchandise with recurring gross sales to a loyal and rising clientele.

Infrastructure Development and Real Estate Investment

The Company launched into an bold undertaking to broaden its operations and improve each cultivation and manufacturing capability in Las Vegas.

The Company closed on the acquisition of 2.78 acres of uncooked land which is contiguous to the present location that may host AMA’s new state-of-the-art 67,750 sq. ft. cultivation facility. The land buy is in addition to the 1.39 acres owned by the Company for a complete of 4.17 acres of land. The actual property property are situated on a main thoroughfare in Las Vegas and permit for additional growth as extra provide is required in the quickly increasing Las Vegas market.

All vital allowing was secured through the 12 months and the brand new cultivation facility is predicted to be operational through the first quarter of 2019, the place it expects to domesticate roughly 800 – 900 lbs. / month to considerably improve flower cultivation to help AMA’s personal line of cannabis-based merchandise and white-label extraction.

AMA additionally bought an present 12,160 sq. ft. constructing adjoining to the cultivation facility, to be utilized for hashish manufacturing, processing and extraction. The manufacturing area shall be 6 instances the scale of the present facility (2,000 sq. ft.), which ought to place the corporate to extra effectively produce bigger portions of product.

Hemp Processing Capabilities for CBD Extracts

The Company additionally introduced that its new manufacturing constructing will home a hemp processing facility utilized to provide full spectrum oils, distillates and isolates with a goal of 2,000 kgs. of completed product per 30 days.

New Regulations

On December 20th, the Agriculture Improvement Act of 2018 (“Farm Bill”) was handed, legalizing hemp as an agricultural commodity federally in the United States.  The current transfer by the U.S. authorities to take away hemp from the Controlled Substances Act and make it authorized to provide, promote and distribute industrial hemp will improve the alternatives for this new vertical and open a important market for the Company’s CBD suite of merchandise. The change in laws is predicted to:

• Positively influence the Company’s plans to provide CBD extracts on a massive scale
• Set the stage for an expanded give attention to CBD branded items
• Open new markets throughout the U.S.
• Increase participation from monetary establishments and buyers in the U.S.
• Present the chance for the Company’s suite of branded merchandise to be carried in main nationwide retailers

Capital Markets and Financing Activities

The Company efficiently accomplished convertible debenture financings to speculate in the long run progress of its operations.

• Convertible debenture financing raised gross proceeds of $6.5 million {dollars}.
• Company raised extra gross proceeds of $17.25 million {dollars} via a quick kind prospectus providing of convertible debentures.
• Raised $13.1 million {dollars} via the exercise of warrants and stock choices.
• In November, the Company met the eligibility necessities for buying and selling on the OTCQX®, the OTC Markets’ premier tier for established, high-growth and investor-focused firms wishing to achieve added publicity in the United States.

Board of Directors

The Company welcomed the next key people to its Board of Directors:

Cameron Watt – Mr. Watt additionally serves as Vice President of Business Development for the Company and brings 30 years of profitable enterprise negotiation and strategic management expertise in numerous industries, with a expertise for growing, launching and managing companies.

Brian Farrell – Mr. Farrell is a Chartered Accountant and a companion with a public accountancy firm for 35 years, specializing in taxation, accounting and offering monetary recommendation to excessive internet value people. He has served as CFO to each personal and publicly-listed firms.

Andy Richards – Mr. Richards spent 34 years in regulation enforcement and retired as a Deputy Police Chief in the Greater Vancouver space in 2015. He has been instrumental in constructing Spire into an trade chief in the high-risk authorized hashish sector.

Chris Rebentisch – Mr. Rebentisch serves as USA Chief Operations Officer and is the founding father of Infused, bringing a wealth of expertise in the hemp and CBD area, having developed and crafted proprietary formulations for the Canna Hemp™ product line with the idea in the pure therapeutic properties of hashish.

The Company additionally accomplished a identify change to 1933 Industries Inc. to replicate the Company’s diversified enterprise mannequin, together with its established hashish cultivation and manufacturing enterprise, expanded capabilities in hemp / CBD extraction, growth of its advisory providers arm and its acquisitive progress technique in the United States and Canada.

“We are poised to capitalize on the foundation we have built over the last 16 months”, commented Mr. Sutton. “We plan to replicate our successful business model in Nevada in other favourable jurisdictions across the U.S. and Canada. We will continue to evaluate  significant growth prospects as we strive to realize value for our shareholders.”

About 1933 Industries Inc.

1933 Industries Inc. is a vertically built-in hashish firm with operations in the United States and Canada. Operating via three subsidiary firms, 1933 Industries owns licensed medical and adult-use hashish cultivation and manufacturing property, proprietary hemp-based, CBD infused merchandise, CBD extraction providers and a specialised hashish advisory firm supporting purchasers in safety, intelligence and due diligence. The Company owns 91% of each Alternative Medicine Association and Infused MFG. and 100% of Spire Global Strategy.

Please go to our web site at http://www.1933industries.com

Neither the Canadian Securities Exchange nor its Regulation Services Provider (as that time period is outlined in the insurance policies of the Canadian Securities Exchange) accepts duty for the adequacy or accuracy of this launch.

Notice concerning Forward Looking Statements: This information launch accommodates forward-looking statements. The use of any of the phrases “anticipate”, “continue”, “estimate”, “expect”, “may”, “will”, “project”, “should”, “believe” and comparable expressions are meant to establish forward-looking statements. Although the Company believes that the expectations and assumptions on which the forward-looking statements are primarily based are affordable, undue reliance shouldn’t be positioned on the forward-looking statements as a result of the Company can provide no assurance that they’ll show to be appropriate.  Since forward-looking statements deal with future occasions and situations, by their very nature they contain inherent dangers and uncertainties. These statements communicate solely as of the date of this information launch. Actual outcomes might differ materially from these presently anticipated as a result of a variety of components and dangers together with numerous danger components mentioned in the Company’s disclosure paperwork, which may be discovered underneath the Company’s profile on www.sedar.com.   1933 Industries undertakes no obligation to replace publicly or revise any forward-looking info, whether or not as a results of new info, future occasions or in any other case, besides as required by regulation.

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