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

Executive Summary

• The company’s unsecured convertible debentures (aggregate principal ≈ $2.598 M) mature on Dec 31 2025, and the firm lacks sufficient cash to repay them in full without jeopardizing operations.
• 1933 Industries reported FY 2025 revenue of $17.4 M, gross profit of $5.4 M (26% margin), and a modest pre‑tax net income of $0.03 M, marking a >100% improvement versus FY 2024 losses.
• Holders are urged to convert the debentures into equity at $0.05 per unit (one common share plus one warrant) before Dec 22 2025; accrued interest will be settled via share issuance.

Key Details

• Debenture Terms – Principal amount: ~$2,598,000; maturity: 31 Dec 2025; conversion price: $0.05 per unit (1 common share + 1 warrant).
• Warrant Terms – Exercise price $0.05 per share; expires 31 Dec 2028 unless accelerated if CSE price > $0.10 for 20 consecutive trading days, in which case expiry may be moved to 30 days after notice.
• Interest Settlement – All accrued and unpaid interest will be paid by issuing additional common shares on the maturity date.
• Conversion Deadline – Debenture holders must act before close of business on 22 Dec 2025 (the fifth business day prior to maturity).
• Liquidity Position – Company states it does not have sufficient cash resources to repay principal without materially impairing operations; liquidity needed for ongoing business continuity.
• Financial Performance FY 2025
• Revenue: $17.4 M
• Gross profit: $5.4 M (26% margin) – record high
• Net income before taxes: $0.03 M (vs. loss of $2.25 M in FY 2024)
• Comprehensive income: $0.20 M (vs. comprehensive loss of $1.07 M in FY 2024)
• Going Concern – Management and Board assert the company remains a going concern, citing recent profitable quarters.
• Strategic Rationale – Converting debentures to equity aligns debenture holders with shareholders, reduces debt burden, and supports balance‑sheet strength.

Notable Quotes

• “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.” – Management statement.