BioHarvest Sciences (BHSC) has closed its private placement and exercised warrants for total net proceeds of $7,892,294.
The company issued a total of 7,781,375 units for net proceeds of $3,484,849 after payment of commissions and finders fees.
Under the first tranche, BioHarvest issued 6,845,368 units for net proceeds of $3,066,850.60. The second tranche consisted of 936,007 units for net proceeds of $417,998.00.
Each unit consists of one common share and one half of one share purchase warrant. Each whole warrant entitles the holder to purchase one additional common share at a price of $0.55 per share for a period of one year from the date of issuance.
BioHarvest also announced that 18,217,384 warrants issued during previously completed private placements have been exercised for total proceeds of $4,407,445.
Proceeds will be used 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.
- Hire a number of key roles, critical for the Company's further expansion.
- Increase marketing resources behind the VINIA® US launch
- Provide funds for general corporate purposes
Ilan Sobel, CEO of BioHarvest remarked on the financing.
"Adding $7,892,294 to the company's treasury demonstrates investor confidence in the company's strategy and leadership. The funds raised will support the current growth phase of the company and further enable us to build the biotech company we envision."
Based in Vancouver, BC, BioHarvest Sciences Inc. is the developer and exclusive owner of the proprietary and patent-protected BioFarming technology.
BioHarvest Sciences Inc. (BHSC) is down 8.57 per cent, trading at C$0.32 per share at 11:30 am ET.