1933 Industries Inc (CSE:TGIF) (OTCMKTS:TGIFF) on Thursday said it has struck a deal 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.
“Acquiring the additional 9% positions us to fully benefit from the future growth potential of Infused,” said Brayden Sutton, CEO of 1933 in a statement.
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.
READ: 1933 Industries recruits mixed-martial arts fighter Sarah Moras to promote Canna HempX sports recovery cream
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 were trading a 1.92% higher at C$0.53 in afternoon trade in Canada on Thursday.
Contact ellen kelleher at [email protected]
-- This story is updated to reflect latest share price movement --