BioHarvest Sciences Announces A Private Placement Of Up To $5M Of Convertible Notes

BioHarvest Sciences Inc. CNVCF BHSC (FSE:8MV) announced a financing plan based on a private placement of up to $5 million. The funds raised will allow the company to accelerate the growth plan for its polyphenols/antioxidants and cannabis verticals.

On March 23, 2021, BHSC announced the completion of the company's cannabis R&D program, marking the start of the proposed transition to commercial-scale manufacturing. BioHarvest plans to bring its first cannabis products to market in 2022 and will be converting the current VINIA 2 tons/year facility in Rehovot, Israel to produce cannabis.

This is happening in conjunction with the transition of all VINIA manufacturing to the new 20 tons/year facility in Yavneh, Israel, which will provide the required VINIA production capacity to scale VINIA sales in the US.

The transition to cannabis manufacturing in Israel, combined with the planned incremental marketing spend for VINIA in the USA, requires additional financing which the company will seek to raise by issuing up to $5 Million of convertible notes.

Ilan Sobel, CEO, stated "Our unprecedented achievements to date in the development and commercialization of our proprietary platform technology presents an opportunity for investors to enjoy the expected success of the company as it scales its operations for both business verticals. Our leadership in plant cellular biology, our wealth of IP and our operational performance convince us that the current share price of BHSC, which has also been impacted by geopolitical uncertainties, undervalues the company. By opting for a convertible loan instrument with conversion deferred for one year we avoid dilution at current share price. This $5 Million financing gives us the required marketing resources to accelerate the building of our VINIA revenue and customer base as well as provide the capital needed to commence cannabis production in Israel in H2, both of which are major 2022 priorities which will significantly increase the enterprise value."

BioHarvest will host a shareholders update online meeting at 11 am PDT, April 7^th, 2022.