1933 Industries Urges Conversion of Convertible Debentures to Sustain Growth

1933 Industries Inc., a Nevada-based cannabis producer, announced the maturity of its unsecured convertible debentures, issued in 2024, with a principal value of approximately $2.6 million. These debentures will mature on December 31, 2025. The company has evaluated its financial standing and stated it lacks sufficient cash resources to repay the debentures without impacting ongoing operations.

The company achieved significant financial advances for the fiscal year ending July 31, 2025, with revenue of $17.4 million and a record gross profit of $5.4 million. The company posted net income before taxes of $0.03 million, marking over a 100% improvement compared to the previous fiscal year's losses.

Holders of the 2024 Debentures are encouraged to convert them into equity at $0.05 per unit, each comprising a common share and a share purchase warrant. This move aims to strengthen the company's liquidity and offers debenture holders a stake in its future growth.

Conversion should be completed before December 22, 2025. The company does not plan to extend the maturity date or amend the terms of the debentures. The Board emphasizes this strategy as beneficial for all stakeholders, aligning financial interests and supporting ongoing commitments.