Thank you very much for joining us Brayden Sutton, CEO 1933 Industries Inc. (CSE: TGIF) (OTCQX: TGIFF). We have been closely following your company since inception and are excited by the continued success. Can you please break down your company for our readers and explain exactly what you do?

1933 Industries is a Canadian based, vertically integrated cannabis company with operations in the US and Canada. We are a publicly listed company, trading on the Canadian Securities Exchange (CSE:TGIF), OTC Markets (OTCQX: TGIFF) and in Frankfurt (FWB:1QF). Operating through three subsidiaries, the Company owns licensed medical and adult-use cannabis cultivation and production assets, hemp-based, cannabidiol (CBD) infused products, CBD extraction services and a specialized cannabis advisory firm supporting clients in security, intelligence and due diligence.

The Company holds a 91% interest in Alternative Medicine Association, LC (AMA), a licensed medical and adult-use cannabis cultivation and production company based in Las Vegas that produces its own line of cannabis-based products and manufactures for third-party brands. The Company also has a 91% interest in Infused MFG., manufacturer of a proprietary hemp-based and CBD infused line of health and wellness products, also based in Las Vegas. Spire Global Strategy is a wholly-owned advisory arm based in Canada.

We purchased AMA and Infused in early 2017, just after Nevada voted to legalize cannabis for recreational purposes. AMA (www.amanev.com) was already a mature asset, having been the first to obtain a medical cannabis license in southern Nevada, going back to 2013. Infused (www.cannahemp.com) was a relatively new company, producing high quality organic products infused with hemp/CBD, with over 65 SKUs and more in the pipeline under the Canna Hemp™ brand. We see the CBD market as a key component to our business and a high-growth vertical. Spire (www.spiresecure.com) was established by a group of military, policy, and law enforcement professionals with decades of experience in due diligence, high-risk security, intelligence and government relations. As consultants, Spire provides subject matter expertise to the cannabis sector, advising on licensing applications, public policy development, project design and legalization rollout. They also work closely with us internally.

During the last year, 1933 Industries has significantly expanded its reach in the Las Vegas area. Can you tell us the number of dispensaries carrying your products and the types of products you have on the market?

We have invested in a 10-fold expansion as we believe that Las Vegas provides a fantastic market opportunity due to the approximate 45 million people who visit on a yearly basis.

We have AMA THC products in almost every dispensary in Nevada and we are in over 600 retail outlets nationwide with our CBD line. We are filling a huge demand in the market for cannabis products and seeing increasing revenues on a quarterly basis. Our robust line of AMA cannabis products are well-known, now taking +5% of the total Nevada wholesale market and we white-label other brands under licensing agreements for The Real Kurupt’s Moon Rocks, Denver Dab Co. and others. Our AMA product line includes over 100 SKUs such as flower, pre-rolls and concentrates such as shatter, sugar, crumble, cake batter, and wholesale distillate oil for vape pens.

It looks like the company has become very focused on the California cannabis opportunity. Can you tell us how you are capitalizing on this massive cannabis market?

California represents a huge market for our Infused product line and we are building our distribution and investing in CBD assets. We hold our own distribution channels in the state where our Infused wellness line is sold in about 150 outlets – from dispensaries and CBD specialty stores to boutiques. We are in the process of evaluating and establishing partners for local production of CBD and THC products. California is one of the biggest markets, setting every trend for all the United States. Market acceptance for our Infused line is fantastic as there are not enough legal products on the shelves to meet the strong and growing demand.

1933 and its subsidiaries offer a broad range of products. Which products have been the best sellers and which products are best for the company from a profit standpoint?

Our Canna Hemp™ line offers a wide range of high quality CBD-infused, hemp-based products that include body lotions, lip balms, pain relief creams, dabs and vape cartridges. Our vape pens and elixirs are infused with our exclusive TerpFX, a proprietary blend of terpenes used to create diverse effects, aromas and flavors. The Canna Hemp™ Relief Cream is our biggest seller. Our oils and vapes in both the THC and CBD lines are also big sellers as per higher consumer demands. In fact, the CBD Relief Cream was named ‘Best Topical’ by Leafy’s Best in State: The Top State Specific Products and Experiences of 2018 and our Canna Hemp X™ was named “Best Topicals for Pain” by Herb’s Guide to the Best Cannabis Products on the Planet.

Cannabidiol (CBD) has become more of a household name following the passing of the U.S. Farm Bill. 1933 and its subsidiaries have been capitalizing on the CBD market. Can you provide more insight into this?

1933 Industries announced plans to begin processing hemp into CBD extracts for the production of full spectrum oils, distillates and isolates with an estimated target of 2,000 kgs. per month, once our new processing facility comes online this year. We are capitalizing on the CBD market by placing heavy focus on CBD oil and isolate production as well a strong focus on CBD branded goods. The new legislation will create a robust market for hemp at competitive rates and will provide greater access to biomass, while highlighting the need for CBD processing facilities. The untapped versatility of CBD will become sought-after, as regular products begin to be infused with CBD and national retailers enter this sector.

It looks like 1933 Industries is very focused on the West Coast of the United States. Do you have plans to enter markets on the East Coast? Can you tell us a little about your overall company strategy?

Whereas AMA only sells products in Nevada, Infused has penetrated the market in 46 states so far, with a strong focus on Nevada, California, Arizona and Colorado, where we have partnered with Denver Dab Co. to introduce our line of products to that market. We are watching the markets closely as sales dictate where our focus should be. As the east coast opens up to legal cannabis, we will continue to increase our sales to eastern states such as Florida, Massachusetts and New York. We will continue to scale up our assets, building the required infrastructure for cannabis production; we will continue to establish brand identity and consumer loyalty with growing sales and margins; we will focus on growing our CBD business due to its potential therapeutic applications for a variety of conditions; and establish our hemp-processing and CBD extraction vertical, while acting on targets for acquisition in favourable jurisdictions. The overall company strategy is to become a multi-state operator on both the THC and CBD business lines.

How will you leverage the resources gained through the Spire Global Strategy acquisition to drive growth across the firm?

Spire’s value proves crucial internally when we are evaluating acquisition opportunities and choosing our future partners and working relationships. The legal cannabis industry around the world is still struggling to separate itself from the black market ties that have been deep rooted for many decades. Spire assists us internally with our due diligence process and provides us with expertise in the cannabis sector.

Cannabis regulations have been easing all over the world. How does 1933 Industries plan to capitalize on this trend? Are you looking at any international markets?

We would like to distribute our CBD products in Europe and Asia is helping us to springboard into these markets. We will keep you updated in this regard.

From a valuation standpoint, we think the market significant underappreciates 1933 Industries. From a balance sheet standpoint, can you highlight some of the company’s key metrics (cash, assets, liabilities, working capital, etc.)?

We are very pleased with the results of our first full year of operations as a public entity and we have experienced substantial growth through our operating subsidiaries. 1933 has invested significant capital in building out our new cultivation and production facilities in Las Vegas. We have consistent sales revenue growth quarter to quarter from increasing demand for our cannabis products in the States of Nevada, California and Colorado.

Fiscal 2018 Highlights

Record sales revenues of $12,649,926 for the year

Overall gross margins for 2018 of 49%

Total assets increased to $41,339,616

Alternative Medicine Association (“AMA” – 91% ownership)

AMA contributed 65% to the Company’s total revenue

AMA generated an overall gross margin of 37% ($3,272,703)

The positive contributing income before tax from AMA is $1,353,485

Infused Manufacturing (“Infused” – 91% ownership)

Infused contributed 34% of the Company’s total revenue

Infused generated an overall gross margin of 71% ($3,078,763)

Infused broke even in its first full year of operations

Most recently, our Q1 2019 consolidated revenues came in at $4,616,812, an increase of 46% over same quarter last year. Total assets increased to $56,486,526, up from $41,339,616 in the previous quarter as well. The net loss for Q1 2019 was approximately $3 million mainly due to our expansion and increased expenditures in marketing efforts to drive sales. Our liquidity has been recognized by our inclusion in the following indices: the CSE25 Index which is comprised of the 25 largest companies in the Canadian Securities Exchange Composite Index by market capitalization; the Horizons Emerging Marijuana Growers Index ETF (“HMJR:NEO”); the United States Marijuana Index; and most recently the OTCQX Canada Index (.OTCQXCAN), which tracks Canadian OTCQX companies.