Cannabis consumer packaged goods company 1933 Industries Inc. (CSE:TGIF)(OTCQB:TGIFF) confirmed Tuesday that it has signed a binding letter of intent to acquire all shares of a Day One Beverages Inc in an all-stock transaction. Day One is known for its portfolio of CBD-infused sparking water products.
"Our brand promotes a positive message that resonates with a large consumer audience that understands and embraces the benefits of CBD and want a zero-calorie, unsweetened beverage, at the right price point and delivered in a way that connects with people," Chris Clifford, founder and CEO of Day One Beverages stated.
Every can of Day One, which has zero calories and no sugar, is infused with 20mg of broad-spectrum, USA-sourced CBD and real fruit juices. Day One sparking water is available in lemon, lime and grapefruit. Products are non-GMO, gluten-free and free of preservatives.
The LOI Details
Under the proposed deal, 1933 Industries will acquire Day One in an all-stock arm's length transaction via the issuance of an aggregate of 55 million shares of common stock of the company. The first 45.2 million shares will be issued at closing, while the remaining 9.8 million will be issued in quarterly installments subsequent to closing.
The closing of the transaction is anticipated on or around January 31st, 2022, and is subject to regulatory approval as well as other customary conditions of closing.
1933 Industries has also entered into a loan agreement to advance up to $300,000 to Day One in anticipation of the successful closing of the transaction, upon which any loans would be forgiven and the loan agreement retired.
"The intended acquisition of Day One strategically positions the Company at the forefront of one of the fastest growing categories in the beverage space. CBD-infused beverages are part of the healthier for you movement targeted towards a health-conscious social consumer who wants a better alternative to high-sugar drinks,” Paul Rosen, chairman and CEO of 1933 Industries stated. “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. We are also very excited about the promising synergies between Day One's management team and distribution channels, and 1933's own Canna Hemp™ line of CBD wellness products".
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Price Action
1933 Industries shares closed Friday market session 0.55% lower at $0.04 per share.
Photo: Courtesy of Kym MacKinnon on Unsplash
