1933 Industries: Seizing Full Control of AMA to Drive Explosive Growth in Nevada's Cannabis Market

The cannabis industry’s evolution hinges on operational control, scale, and strategic consolidation—key themes exemplified by 1933 Industries’ (CSE:TTT) recent acquisition of the remaining 9% stake in its Nevada-based subsidiary, AMA. By solidifying its ownership of this critical cultivation and production asset, the company has positioned itself to capitalize on Nevada’s booming cannabis market while resolving lingering minority interest complexities. This move isn’t just a tactical win; it’s a catalyst for sustained growth, operational efficiency, and shareholder value. Here’s why investors should act now.

The Strategic Masterstroke: Full Ownership of AMA

On April 8, 2024, 1933 Industries completed its acquisition of the final 9% stake in AMA, a transaction valued at $50,000 and settled via the issuance of 3,375,000 common shares. This move achieved 100% ownership of AMA, a subsidiary responsible for Nevada’s top-selling cannabis products. Previously, AMA’s minority stakeholder—Caleb Zobrist, the company’s Executive VP and General Counsel—posed a potential governance hurdle. By eliminating this stake, 1933 Industries has eliminated any dilution of decision-making power, enabling faster strategic execution and reinvestment into AMA’s operations.

Operational Efficiency and Market Dominance

AMA’s products dominate Nevada’s cannabis market, contributing to 1933 Industries’ record fiscal 2024 revenue of $19.3 million—a 15% year-over-year increase—and a gross profit turnaround to $2.9 million (versus a loss in the prior year). This success stems from AMA’s vertically integrated model, which spans cultivation, production, and retail distribution. Full ownership now allows 1933 to:
- Optimize supply chains: Reduce costs through unified resource allocation.
- Accelerate innovation: Directly fund R&D for high-margin product lines (e.g., concentrates, edibles).
- Expand market share: Leverage AMA’s reputation to capture Nevada’s $1.5 billion cannabis market, which is growing at a 7% annual rate.

Navigating Regulatory Hurdles: A Temporary Speedbump

Critics may cite the November 2024 Management Cease Trade Order (MCTO) imposed due to delayed financial filings as a red flag. However, this was swiftly resolved by the January 27, 2025, deadline, with no material impacts on operations or compliance beyond the filing delay. The company’s proactive bi-weekly updates to investors demonstrated transparency, and its ability to navigate this regulatory snag underscores its resilience.

Financial Catalysts and Stock Performance

The acquisition’s financial logic is irrefutable. AMA’s profitability has been a linchpin in reversing the company’s prior losses, while the acquisition’s minimal $50,000 cash cost (funded via shares) preserved liquidity for growth. With Nevada’s cannabis market expanding and AMA’s operational synergies now unlocked, investors can expect:
- Revenue diversification: Post-acquisition focus on high-margin products (e.g., premium flower, infused products).
- Debt reduction: AMA’s cash flows will support deleveraging, improving financial flexibility.

Why Act Now?

The data speaks for itself: 1933 Industries’ stock has surged 30% since Q4 2024, reflecting market confidence in AMA’s operational turnaround and strategic clarity. Yet, with the company poised to capitalize on Nevada’s growth and its balance sheet strengthening, this is a buy signal.

Investment Thesis:
- Buy: Target entry at current levels, with a 12-month price target of $0.80 (up from recent $0.50s).
- Hold: For investors seeking exposure to a consolidating cannabis leader.

The path forward is clear: 1933 Industries’ full ownership of AMA eliminates distractions, unlocks synergies, and sets the stage for Nevada’s cannabis crown jewel. With execution risks now minimized and financial momentum building, this is the moment to secure a position in a company primed for exponential growth.

Act now—before the market catches up.