1933 Industries Inc. (CSE:TGIF) (OTCQB:TGIFF) and Day One Beverages, Inc. have mutually agreed to terminate their binding letter of intent whereby 1933 Industries agreed to acquire 100% of all of the authorized and issued shares of Day One.
The company and Day One have agreed to terminate the LOI after determining that it is in each party's best interest to continue operating as independent companies. Day One will repay a loan made by 1933 Industries pursuant to the terms of the LOI in the amount of $482,571.24 including repayment of the outstanding principal balance, interest accrued, and other fees accrued. The loan repayment is due and payable in full on or before June 30, 2022. In addition, Day One will reimburse 1933 Industries for costs incurred of $30,051.84, which is due on or before June 9, 2022. While intended to be a full and final settlement of the terms of the LOI, in the event the loan repayment is not made by June 30, 2022, the company will retain all its rights under the LOI and the initial loan agreement, including the right to convert the loan balance into shares of Day One at a pre-negotiated valuation of Day One at $4.5 million.
Paul Rosen, chairman and CEO of 1933 Industries, stated, "Over the last number of months it became evident to both parties that Day One's capital needs far exceeded modeled projections, and with that updated insight both parties concluded it was in their respective best interests to not complete the transaction. We wish them the best of luck as they progress on their business, and we look forward to continued collaboration between the companies including a continuation of our co-packing arrangement for our best-selling relief creams".
Photo: Courtesy of Jeff W on Unsplash
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