1933 Industries (CSE: TGIF) announced today the binding letter of intent to acquire Day One Beverages. The all-stock deal at arm’s length is for a total consideration of 55.0 million common shares, which is valued at $2.5 million as of the last trading price.
The transaction will see the initial 45.2 million shares issued upon closing while the remaining 9.8 million shares will be issued in quarterly installments thereafter.
“The intended acquisition of Day One strategically positions the Company at the forefront of one of the fastest-growing categories in the beverage space,” said 1933 Industries CEO Paul Rosen. “With strong distribution channels already in place and an innovative approach to marketing, we anticipate Day One to be a key revenue growth driver for the Company in the future.”
Upon closing, Day One also gets the right to nominate a director to the 1933 Industries’ board.
The Los Angeles-based beverage firm is known for its CBD-infused citrus drinks, with each 12-ounce can containing 20mg CBD.
The transaction is expected to close on January 31, 2022, subject to regulatory approval and customary closing conditions.
In December 2021, the cannabis firm reported its fiscal Q1 2022 financials, topbilled by $2.5 million in revenue and $1.0 million net loss.
1933 Industries last traded at $0.045 on the CSE.
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