BioHarvest Sciences Announces a Private Placement of up to USD $5 Million and Conversion of Debt Notes

Rhea-AI Summary

BioHarvest Sciences announced a private placement of up to USD $5 million, offering 697,350 units at USD $7.17 per unit. Each unit includes one common share and warrants allowing purchase at USD $7.68 and USD $11.52 within specified periods. The funds will support the expansion of their CDMO business and general corporate purposes. Additionally, the company converted CAD $1.33 million of debt notes into 161,620 common shares, issuing 114,236 early exercise warrants. Over 90% of their convertible notes have now been exercised.

Positive

• Private placement aims to raise up to USD $5 million.
• Funds will support expansion of the CDMO business and manufacturing capabilities.
• Conversion of CAD $1.33 million debt notes into 161,620 common shares.
• Issuance of 114,236 early exercise warrants.
• Over 90% of convertible notes have been exercised.

Negative

• Potential shareholder dilution from the private placement.
• Fees of up to 5% of the offering's cash proceeds.

Vancouver, British Columbia and Rehovot, Israel--(Newsfile Corp. - June 21, 2024) - BioHarvest Sciences Inc. (CSE: BHSC) (OTCQB: CNVCD) ("BioHarvest" or the "Company"), announced today that its board of directors have approved a private placement of up to 697,350 units at a price of USD $7.17 per unit (approx. CAD $9.82) for gross proceeds of up to USD $5,000,000 (approx. CAD $6,847,000). 

Each Unit includes one common share, one-quarter (1/4) of a USD $7.68 Warrant (approx. CAD $10.50), and one-quarter (1/4) of an USD $11.52 Warrant (approx. $15.77 CAD). A full USD $7.68 Warrant allows the holder to buy one common share at USD $7.68 within six months from the issue date. Similarly, a full USD $11.52 Warrant allows the holder to buy one common share at USD $11.52 within eighteen months from the issue date. The Company will pay (to registered investment dealers or finders, where permitted by law) cash commissions or finders fees of up to 5% of the cash proceeds of the offering.

Funds raised through this private placement will be allocated to advancing the Company's Contract Development and Manufacturing Organization (CDMO) business unit, expanding the Company's manufacturing capabilities within the newly acquired 80,000 square foot campus, and for general corporate purposes.

In addition, the Company announces an early conversion of convertible debt notes, associated with the convertible debt financing rounds completed on July, October and December 2023.

BioHarvest reports that a total of CAD $1,331,254.50 (approx. USD $972,348) of principal loans plus accrued interest has been converted into 161,620 common shares. As part of the term of October and December 2023 convertible loans, the Company has issued 114,236 "Early Exercise" warrants at USD 7.70 for early conversion. 107,617 "Early Exercise" warrants will expire on October 30, 2025, and 6,619 will expire on December 22, 2025.

As a result of this conversion, over 90% of the Company's convertible notes have now been exercised.

About BioHarvest Sciences Inc.

BioHarvest Sciences Inc. (CSE: BHSC) (OTCQB: CNVCD) (FSE: 8MV) is a leader in Botanical Synthesis, leveraging its patented technology platform to grow plant-based molecules, without the need to grow the underlying plant. BioHarvest is leveraging its botanical synthesis technology to develop the next generation of science-based and clinically proven therapeutic solutions within two major business verticals; as a contract development and production organization (CDMO) on behalf of customers seeking complex molecules, and as a creator of proprietary nutraceutical health and wellness products, which includes dietary supplements. To learn more, please visit www.bioharvest.com.

Forward-Looking Statements

Information set forth in this news release might include forward-looking statements that are based on management's current estimates, beliefs, intentions, and expectations, and are subject to a number of risks and uncertainties that could cause actual results to differ materially from those described in the forward-looking statements. All forward-looking statements are inherently uncertain and actual results may be affected by a number of material factors beyond our control. Readers should not place undue reliance on forward-looking statements. BHSC does not intend to update forward-looking statement disclosures other than through our regular management discussion and analysis disclosures.

Neither the Canadian Securities Exchange nor its Regulation Services Provider accept responsibility for the adequacy or accuracy of this release.

This release has been reviewed and approved by Dave Ryan, VP Investor Relations, who accepts responsibilities for its contents.

BioHarvest Corporate Contact:
Dave Ryan, VP Investor Relations & Director
+1 (604) 622-1186
info@bioharvest.com

Investor Relations Contact:
Lucas A. Zimmerman
Managing Director
MZ Group - MZ North America
+1 (949) 259-4987
BHSC@mzgroup.us

To view the source version of this press release, please visit https://www.newsfilecorp.com/release/213902

FAQ

What is the purpose of BioHarvest Sciences' private placement announced on June 21, 2024?

The private placement aims to raise up to USD $5 million to support the expansion of BioHarvest Sciences' Contract Development and Manufacturing Organization (CDMO) business and other corporate purposes.

How many units will be offered in BioHarvest Sciences' private placement and at what price?

BioHarvest Sciences will offer 697,350 units at a price of USD $7.17 per unit.

What are the details of the warrants included in the BioHarvest Sciences private placement units?

Each unit includes one-quarter of a USD $7.68 warrant and one-quarter of a USD $11.52 warrant, allowing purchases within six and eighteen months, respectively.

What will BioHarvest Sciences use the funds from the private placement for?

The funds will be used for advancing the CDMO business, expanding manufacturing capabilities at their new 80,000 sq. ft. campus, and general corporate purposes.

How much debt was converted into shares by BioHarvest Sciences, and what was the result?

BioHarvest Sciences converted CAD $1.33 million (USD $972,348) of debt notes into 161,620 common shares, along with issuing 114,236 early exercise warrants.

What percentage of BioHarvest Sciences' convertible notes have been exercised?

Over 90% of BioHarvest Sciences' convertible notes have now been exercised.