Despite its best efforts to right the ship, Nevada-based 1933 Industries Inc. (CSE: TGIF)(OTC Pink: TGIFF) told investors that its common stock was moved from the OTCQB Market to the OTC Pink Open Market, as it no longer meets the minimum closing bid price standards for continued eligibility on the OTCQB. The stock trades at a fraction of a penny and the last time the stock managed to trade at one cent was in April of this year.

1933 has been skating on the edge of uncertainty as it valiantly attempts to get its house in order. The company last reported third-quarter earnings in July and at the time reported its total revenues rose slightly to C$4.8 million. The company attributed the increase to the strength of the AMA brand in Nevada and the upgrades and improvements to the cultivation facility completed in the fourth quarter of 2023. It trimmed its losses to C$142,886 for the quarter versus last year’s loss of C$2.9 million.

The company had convertible debentures due December 31, 2023, and it was renegotiated to have a maturity date extended to December 31, 2025. In June 1933 said it was engaging in a non-brokered private placement financing consisting of a maximum of 120,000,000 Units, for $0.015 per Unit, for gross proceeds of a maximum of $1,800,000. The company had previously stated the placement would close in July, but there hasn’t been a confirmation of that.

1933 is hoping that the approval of cannabis consumption lounges in Nevada will boost sales and drive cannatourism. The company believes the lounges will benefit tourists who will spend more.

Cash crunch

In addition to its other challenges, the company is facing a dwindling cash situation. When it reported its third-quarter earnings, the company had only C$638,022 in cash. The company wanted investors that its operating cash flows were not sufficient to meet its working capital requirements and that there was no guarantee that the company would be able to raise additional capital on acceptable terms to fund a potential cash shortfall.

The Daily Hit is a recap of the top financial news stories for Tuesday, July 2, 2024.

On the Site

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In Other News

COLORADO RECALL: NOCO Farm, LLC d.b.a. Snaxland

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Nevada consumption lounges

The Nevada Cannabis Compliance Board on Monday disqualified six applicants who have been waiting more than two years for cannabis consumption lounge licenses under a category reserved for individuals convicted of crimes when marijuana was illegal.

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Minnesota

Nearly a year into tax collections on Minnesota’s new lower-potency hemp industry, sales of hemp edibles, beverages and other products reached at least $130 million. That’s according to numbers compiled by the state Department of Revenue.

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