1933 Industries Issues Reminder to Debenture Holders Ahead of December 22 Conversion Deadline and Highlights Positive Industry Developments

Executive Summary

• The Company reminds holders of its 2024 unsecured convertible debentures that conversion requests must be submitted by December 22, 2025, to avoid default.
• Conversion terms: $0.05 per unit (one common share plus one warrant exercisable at $0.05 until Dec 31, 2028); accrued interest will also be settled in shares.
• The release notes the U.S. executive order reclassifying cannabis to Schedule III, which the Company views as a positive regulatory development for its business.

Key Details

• Conversion Deadline: Requests must be received on or before December 22, 2025; maturity date of the debentures is December 31, 2025.
• Conversion Price & Structure: $0.05 per unit; each unit = 1 common share + 1 warrant (exercise price $0.05, expires Dec 31, 2028, with accelerated expiry provisions).
• Interest Settlement: All accrued and unpaid interest will be settled through issuance of additional common shares in accordance with the debenture terms.
• Liquidity Concern: Board determined monetary repayment is not feasible; conversion is presented as the most constructive outcome to preserve value and maintain operations.
• Potential Consequence of Non‑Conversion: If conversion does not occur and the Company cannot repay, it may seek protection under the Companies' Creditor Arrangement Act, likely resulting in lower recovery for unsecured creditors.
• Regulatory Development: U.S. President Donald Trump signed an executive order on Dec 18, 2025 reclassifying cannabis from Schedule I to Schedule III, which could reduce tax burdens (Section 280E) and improve banking access for the industry.
• CEO Comment: “We commend President Trump…the shift offers far‑reaching benefits…eliminating the IRS Section 280E tax penalty.” – Brian Farrell, Chairman & CEO

Notable Quotes

• “Conversion strengthens the Company's balance sheet, reduces financial risk, and positions the Company to continue executing its operating and growth strategy.” – Board of Directors
• “We commend President Trump and his administration for the landmark executive order reclassifying cannabis as a Schedule III drug…providing critical relief to state‑licensed businesses by eliminating the IRS Section 280E tax penalty.” – Brian Farrell, CEO