BioHarvest Sciences Inc. (BHSC) has announced a $4 million private placement to grow its cannabis development program.
The company’s board of directors approved the offering of 8,888,889 units at $0.45 per share, with each unit consisting of one common share and half of a purchase warrant.
Proceeds from the offering will allow BioHarvest to upgrade its VINIA facility in Israel into a cannabis production facility.
Ilan Sobel, CEO of BioHarvest, commented on the company’s growth into the cannabis market.
“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,” he said.
BioHarvest will use additional proceeds from the offering to hire new personnel that will be key in facilitating the company’s expansion.
Based in Vancouver, BioHarvest Sciences is the developer and owner of the patented BioFarming technology, which produces active plant ingredients without the need to grow the plant itself.
The company has used this non-GMO technology to produce VINIA, a dietary supplement made from the cells of red grapes.
Its revenue is mainly generated by VINIA and other Super Fruit Nutraceutical products.
By adopting this technology in its new cannabis plant, BioHarvest hopes to become a leading supplier of medicinal and recreational cannabis.
BioHarvest Sciences Inc. (BHSC) is up 3.75 per cent, trading at $0.415 per share as of 11:18 am ET.