Star Metro - 1933 Industries Announces Maturity of Unsecured Convertible Debentures and Encourages Conversion to Support Continued Growth

Following a careful review of the Company's financial position, operating performance, and near-term working capital requirements, the Company advises that it does not currently have sufficient cash resources to repay the outstanding principal of the 2024 Debentures in cash upon maturity without materially impairing its ability to continue operating. The Company's available liquidity is required to support ongoing operations, maintain business continuity, and preserve the value created over the past year.

Strong Operating Momentum and Improved Financial Performance

For the fiscal year ended July 31, 2025, 1933 Industries delivered significant financial improvements, including:

• Revenue of $17.4 million

• Record gross profit of $5.4 million, representing a 26% gross margin

• Net income before taxes of $0.03 million and comprehensive income of $0.2 million, compared to a net loss before taxes of $2.25 million and a comprehensive loss of $1.07 million in fiscal 2024

These results reflect more than a 100% improvement in earnings year-over-year and demonstrate the Company's progress toward sustainable profitability. The Company has operated on a profitable basis in recent quarters and continues to be a going concern. Management and the Board believe the business has meaningful long-term value and a strong foundation for continued growth.

Encouragement to Convert Debentures into Equity

In light of the above, the Company strongly encourages holders of the 2024 Debentures to convert their debentures into equity in accordance with the existing terms of the debentures. Conversion provides debenture holders with the opportunity to participate directly in the Company's future growth while strengthening the Company's balance sheet and liquidity position.

Under the terms of the 2024 Debentures, holders may convert their principal at a price of $0.05 per unit. Each unit consists of:

• One common share of the Company; and

• One common share purchase warrant, exercisable at $0.05 per share until December 31, 2028, subject to certain accelerated expiry provisions. If the closing price of the Company's common shares on the Canadian Securities Exchange exceeds $0.10 for 20 consecutive trading days, the Company may accelerate the warrant expiry to a date that is 30 days following notice to holders.

In accordance with the debenture terms, all accrued and unpaid interest will become due on the maturity date and will be settled through the issuance of common shares.

Action Required by Debenture Holders

Debenture holders wishing to convert should contact their brokers promptly to initiate the conversion process. Debenture holders have the right to convert prior to the close of business on December 22, 2025 (which is the fifth business day preceding the maturity date or December 31, 2025). At this time, the Company does not intend to seek an extension of the maturity date or amend the terms of the debentures.

The Board believes that conversion represents the most constructive outcome for all stakeholders, aligning debenture holders with equity holders, reducing financial risk, and supporting the Company's ability to meet its ongoing obligations as they become due.

The Company appreciates the continued support of its investors and debenture holders and remains focused on executing its strategy, strengthening its balance sheet, and building long-term shareholder value.

About 1933 Industries Inc.

1933 Industries is a Nevada-based licensed producer, focused on the cultivation and extraction of a large portfolio of cannabis consumer products in a variety of formats under its flagship brand, Alternative Medicine Association (AMA). Its product offerings are cultivated at the Company's 68,000 sq. ft. indoor facility and marketed directly to retail dispensaries. AMA branded flower, infused pre-rolls, and in-house boutique concentrates consistently rank as the top products sold in Nevada. For more information, please visit www.1933industries.com.

For further information please contact:
Alexia Helgason, VP, Investor Relations
604-728-4407
[email protected]

Brian Farrell, Chairman and CEO
[email protected]

Neither the Canadian Securities Exchange nor its Regulation Services Provider (as that term is defined in the policies of the Canadian Securities Exchange) accepts responsibility for the adequacy or accuracy of this release.

Notice regarding Forward Looking Statements: This news release contains forward-looking statements. The use of any of the words "anticipate", "continue", "estimate", "expect", "may", "will", "project", "should", "believe" and similar expressions are intended to identify forward-looking statements. Forward-looking information in this news release includes, but is not limited to, statements regarding: the Company's ability (or inability) to repay the 2024 Debentures at maturity; the Company's current intentions regarding the 2024 Debentures and their terms; the Company's exploration of strategic alternatives; and the potential for cross-defaults and other insolvency measures. Although the Company believes that the expectations and assumptions on which the forward-looking statements are based are reasonable, undue reliance should not be placed on the forward-looking statements because the Company can give no assurance that they will prove to be correct. Since forward-looking statements address future events and conditions, by their very nature they involve inherent risks and uncertainties. These statements speak only as of the date of this news release. The Company provides no assurance that it will successfully navigate its current liquidity challenges or that any financing or strategic transaction will be available on acceptable terms or at all to assist the Company with its obligations. Actual results could differ materially from those currently anticipated due to a number of factors and risks including liquidity risks as the Company lacks the cash resources to pay the 2024 Debentures, refinancing risks, cross-default risks resulting from a default under the 2024 Debentures, litigation risks should holders seek to enforce their rights pursuant to the 2024 Debentures and various risk factors discussed in the Company's disclosure documents, which can be found under the Company's profile on www.sedar.com. 1933 Industries undertakes no obligation to update publicly or revise any forward-looking information, whether as a result of new information, future events or otherwise, except as required by law.

SOURCE: 1933 Industries Inc.

View the original press release on ACCESS Newswire

A.Rogen--SMC