1933 Industries Moves Toward Complete Ownership of AMA Subsidiary

1933 Industries Inc., a cannabis cultivator and producer based in Nevada, has announced an agreement to purchase a 9% interest in Alternative Medicine Association LC (AMA) from Executive VP and General Counsel, Caleb Zobrist. This acquisition by its fully-owned subsidiary FN Pharmaceuticals will elevate the company's stake to 100%, marking full ownership over AMA, a key cultivation and production arm.

The terms of this Membership Interest Purchase Agreement indicate a purchase price of 50,000 USD, paid through the issuance of 3,375,000 common shares, with final numbers conditioned on the 10-day VWAP leading up to the closing date. This transaction awaits regulatory nods, including from the Canadian Securities Exchange and the Nevada Cannabis Compliance Board, without any guaranteed finalization.

This financial maneuver is classified as a "related party transaction" as Zobrist holds a senior position within the company. However, exemptions from formal valuation and minority shareholder approval requirements have been sought, citing the transaction's value not surpassing 25% of the company’s market capitalization.