Mr. Brian Farrell reports

1933 INDUSTRIES PROVIDES UPDATE ON 2024 DEBENTURE CONVERSIONS

1933 Industries Inc. has provided the following update regarding its unsecured convertible debentures issued in 2024.

Debenture conversion status

As of Dec. 22, 2025, the conversion deadline set out in the debenture agreement, an aggregate of $1,035,000 of debentures were converted into units of the company. Following these conversions, $1,563,000 of debentures remain outstanding.

The company acknowledges and thanks the debentureholders who completed conversions in accordance with the terms of the 2024 debentures. The completed conversions reduced the company's outstanding debt obligations and strengthened the company's balance sheet.

Liquidity and capital structure context

As previously disclosed, the company's available cash resources are required to support continuing operations and business continuity. The company does not have sufficient liquidity to repay the outstanding principal amount of the 2024 debentures in cash without materially impairing its ability to continue operating.

The company has recently reported positive operating results and net income; however, maintaining adequate working capital remains critical to financing day-to-day operations. Cash on hand is required for ordinary course operating expenditures, and the company continues to actively manage its liquidity position.

Management commentary

"The conversions completed prior to the deadline reduced the company's outstanding debt and supported the preservation of liquidity required for ongoing operations," said Brian Farrell, chief executive officer and chairman of the board.

The company will continue to monitor its financial position and capital structure and will provide disclosure as required in accordance with applicable securities laws.

About 1933 Industries Inc.

1933 Industries is a Nevada-based licensed producer, focused on the cultivation and extraction of a large portfolio of cannabis consumer products in a variety of formats under its flagship brand, Alternative Medicine Association (AMA). Its product offerings are cultivated at the company's 68,000-square-foot indoor facility and marketed directly to retail dispensaries. AMA-branded flower, infused prerolls and in-house boutique concentrates consistently rank as the top products sold in Nevada.

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