BioHarvest Sciences Inc. (CSE:BHSC, OTC:CNVCF) said its board of directors has approved a private placement of up to 8,888,889 units at a price of C$0.45 per unit to raise gross proceeds of up to C$4 million.
Each unit in the placement will consist of one common share in the capital of the company and one-half of one share purchase warrant. Each whole warrant will entitle the purchaser to purchase one additional share at a fixed price of CS0.55 per share for a period of one year from the closing of the offering.
The company said the funds will be used to enhance its cash position to accelerate its Cannabis development program, provide for the required system upgrades for the conversion of the existing 2 Tons/year VINIA facility into a cannabis production facility to be operational in H1/2022, and enable the hiring of a number of key roles, which will be critical for the company's further expansion.
READ: BioHarvest Sciences appoints two top-ranked law firms to pursue regulatory approvals of its cannabis and hemp products in US and Canada
In a statement, Ilan Sobel, BioHarvest CEO, said: "The progress we have made on the Cannabis development front requires us to take a more aggressive approach towards the commercialization of the Company's Cannabis based products. We now need to dedicate the required financial and human resources to the manufacturing of the BioFarming based Cannabis products.
"This includes the investment required to convert our existing 2Tons/year VINIA® factory located in Israel to a Cannabis producing facility, given the imminent commissioning of the 20Tons/year Super-Fruit Nutraceutical production facility in Israel. We have confidence we can close this financing in less than four weeks with the terms mentioned above."
In connection with the offering, the company said it may pay to registered investment dealers or finders (where permitted by law) cash commissions or finders fees of up to 5% of the cash proceeds of the offering.
The offering is subject to certain conditions including, but not limited to, the receipt of all necessary approvals, including the approval of the Canadian Securities Exchange. The securities to be issued under the offering will have a hold period expiring four months and one day from the date of issuance pursuant to applicable Canadian securities laws.
Based in Vancouver B British Columbia, BioHarvest Sciences 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.
It'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.
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's objective is to become a leading supplier of cannabis for both medicinal and legal recreational purposes.
Contact the author at jon.hopkins@proactiveinvestors.com