BioHarvest Sciences Inc said it has closed its second and final tranche of the private placement which was previously announced on August 4, 2021.
The private placement saw the company issue a total of 7,781,375 units for proceeds of C$3,501,619 with net proceeds of C$3,484,849 after the payment of commissions and finders fees totaling C$16,770.
Each unit consists of one common share priced at C$0.45, and one half of a purchase warrant with each whole warrant entitling the holder to purchase an additional common share for C$0.55 for up to one year.
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As noted in the press release, during the first tranche the company issued 6,845,368 units raising proceeds of C$3,066,850.60 after payment of commissions and finder’s fees.
“This second tranche consists of 936,007 units for proceeds of C$421,203.25, net C$417,998.00 after payment of C$3,025.15 in commissions and finders' fees,” the statement read.
Additionally, since their issuance, 18,217,384 warrants issued in connection with previously completed private placements have been exercised for total proceeds to the company of C$4,407,445.
BioHarvest Sciences plans to use the raised capital to accelerate the company's cannabis development program, provide system upgrades to convert the existing 2 Tons/year VINIA production facility into a cannabis production facility in H1/2022, enable the hiring of a number of key roles, and Increase marketing resources behind the VINIA US launch.
"Adding C$7,892,294 to the company's treasury demonstrates investor confidence in the company's strategy and leadership,” Ilan Sobel, CEO, said in a statement. “The funds raised will support the current growth phase of the company and further enable us to build the biotech company we envision."
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