BioHarvest Sciences Inc. (CSE:BHSC, OTC:CNVCF) said it has closed the first tranche of its non-brokered private placement previously announced on August 4, 2021, for gross proceeds of C$3,080,415.60.
Under the first tranche of the placement, the company issued 6,845,368 units at $0.45 per unit, garnering net proceeds of C$3,066,850.60 after payment of commissions and finder's fees totaling C$13,565.
Each unit in the offering is comprised of one common share of the company and one-half of one share purchase warrant. Each whole warrant entitles the purchaser to purchase one additional common share at a price of C$0.55 per common share for a period of one year from the date of issuance.
In a statement, Ilan Sobel, CEO of BioHarvest commented: "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."
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The company said the net proceeds raised from the private placement 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
The company said it intends to close the balance of the private placement by September 15, 2021. The securities issued under the Oofering have a hold period expiring four months and one day from the date of issuance under applicable Canadian securities laws.
The securities have not been, and will not be, registered under the United States Securities Act of 1933, as amended, 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 US Securities Act and applicable state securities requirements or pursuant to exemptions therefrom.
Based in Vancouver, 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 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. 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.
Contact the author at jon.hopkins@proactiveinvestors.com
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