First tranche closed represents over three-quarters of the anticipated financing.
VANCOUVER, CANADA, and REHOVOT, ISRAEL, August 30, 2021 – BioHarvest Sciences Inc. (“BioHarvest” or the “Company”) (CSE: BHSC) is pleased to announce that it has closed the first tranche (the “First Tranche”) of its non-brokered private placement (the “Private Placement”) previously announced on August 4, 2021. Under the First Tranche, the Company has issued 6,845,368 units (each a “Unit”) at $0.45 per Unit for gross proceeds of CAD$ 3,080,415.60, net CAD$ 3,066,850.60 after payment of commissions and finder’s fees totaling CAD$ 13,565.
Each Unit is comprised of one common share of the Company (a “Common Share”) in the capital of the Company and one-half (1/2) of one share purchase warrant. Each whole warrant (a “Warrant”) entitles the purchaser to purchase one additional Common Share at a price of CAD 0.55 per Common Share for a period of one year from the date of issuance.
The securities issued under the Offering have a hold period expiring four months and one day from the date of issuance pursuant to applicable Canadian securities laws.
The securities described herein have not been, and will not be, registered under the United States Securities Act of 1933, as amended (the “U.S. Securities Act”), or any state securities laws, and accordingly, may not be offered or sold within the United States except in compliance with the registration requirements of the U.S. Securities Act and applicable state securities requirements or pursuant to exemptions therefrom. This press release does not constitute an offer to sell or a solicitation to buy any securities in any jurisdiction.
The net proceeds raised will be used to:
- Accelerate the Company’s Cannabis development program.
- Provide for system upgrades in connection with the conversion of the existing 2 Tons/year VINIA® production facility into a Cannabis production facility to be operational in H1/2022.
- Enable the hiring of a number of key roles, which will be critical for the Company’s further expansion.
- Provide funds for general corporate purposes.
“I am very pleased with how the financing has progressed. The company’s strategy and growth plans have been well received by investors who have demonstrated their confidence in the company’s leadership and capabilities by becoming shareholders.” Ilan Sobel, CEO.
The Company intends to close the balance of the Private Placement by September 15, 2021.
Based in Vancouver, BC, BioHarvest Sciences Inc. is the developer and exclusive owner of the proprietary and patent-protected BioFarming technology. It is the first and only industrial-scale plant cell technology capable of producing the active plant ingredients without the necessity to grow the plant itself. The Company’s technology is non-GMO and has already been validated by VINIA®, the red grapes cells functional food/dietary supplement produced and sold by BioHarvest Sciences Inc. The Company plans to generate significant revenue within the global nutraceutical ingredients and dietary supplements market with VINIA® and other Super Fruit Nutraceutical products. Further, by adapting this technology to the Cannabis plant, and building adequate production capacity, BioHarvest Sciences Inc.’s objective is to become a leading supplier of Cannabis for both medicinal and legal recreational purposes. Visit: www.bioharvest.com.
