(TheNewswire)
Vancouver, British Columbia – TheNewswire - September 16, 2022 – Harrys International ManufacturingInc. , (a wholly owned subsidiary of Harrys Manufacturing Inc. (“ Harrys ” or the “ Company ”)(CSE:HARY ) , ( OTC:WSRRF) is pleased to announce thatthe production process has begun for the first order of Harrys® Premium King Sizecigarettes. Once completed, we expect to ship to the four WesternProvinces, British Columbia, Alberta, Saskatchewan and Manitoba by theend of this month.
Management recognizes there have been significant delays in gettingour product to market, mainly related to the requirement to switchover to slide and shell packaging. The Company anticipates it’sfirst shipments to arrive at our distribution partners in WesternCanada the first week of October 2022 and available for sale invarious retail locations shortly thereafter.
Ken Storey, CEO stated; “Despite some ongoingchallenges, we continue to make significant progress toward enteringthe Canadian market with a viable, low-priced alternative for adultsmokers. I’d like to thank our manufacturing partners for theircontinued efforts to bring our brands to market, as well as ourshareholders and distribution partners who have supported us throughthese delays. We plan to have Harrys® available in several regions in thecountry in the very near future.”
Securities for DebtTransactions
The Company has entered into debt settlement agreementswith certain creditors (the “Creditors”) to settle an aggregate ofCAD$ 81,025 in debt (the “Debt”). Insettlement of the Debt, the Company issued an aggregate of 810,250 units of the Company (the “Units”)at a deemed price of $0.10 per Unit (the “Debt Settlement”). EachUnit was comprised of one common share in the capital of the Company(a “Share”) and one Share purchase warrant (a “Warrant”). EachWarrant will entitle the holder thereof to purchase one additionalShare (a “Warrant Share”) at a price of $0.12 per Warrant Sharefor a period of twelve months from the issue date.
Three of the four Creditors are non-arm’s lengthparties of the Company and the issuance of the such Units to thenon-arm’s length Creditors each constitute a “related partytransaction” as defined in Multilateral Instrument 61-101 - Protection of MinoritySecurityholders in Special Transactions (“MI61-101”). The Company is relying on the exemption from valuationrequirement and minority approval pursuant to subsection 5.5(a) and5.7(1)(a) of MI 61-101, respectively, as the securities do notrepresent more than 25% of the Company’s market capitalization, asdetermined in accordance with MI 61-101. The participation by thenon-arm’s length Creditors in the Debt Settlement was approved bythe Company’s board of directors.
All securities issued in connection with the DebtSettlement are subject to a statutory hold period of four months plusa day from the date of issuance in accordance with applicablesecurities legislation.
Warrant Repricing
The Company also announces that it will amend theexercise price of a total of 2,163,400 commonshare purchase warrants (the “Repriced Warrants”), which areexercisable to acquire common shares in the capital of the Company.The Repriced Warrants were originally issued on July 11, 2022 and arecurrently exercisable at a price of $0.12 per Share. The Company willreprice the exercise price of the Repriced Warrants to $0.10 perShare.
About Harrys
Harrys is a wholesale distributor of value-priced, high quality, 100%natural tobacco cigarettes. Harrys utilizes various types of tobaccoblends to satisfy customer demands and preferences for products thatmeet Health Canada standards. Harrys’ management team brings over 50years of combined experience in the domestic and international tobaccoindustry. For more information, please visit: www.harrysmfg.com
ON BEHALF OF THE BOARD
Ken Storey
President & CEO
For further information, pleasecontact:
Corporate Communications
Telephone: 604-349-3011
Email: IR@HarrysMFG.com
Information inthis news release concerning the Company’s products is intended forthe exclusive use of market investors and is not in any way intendedto promote tobacco products to consumers, which is prohibited byCanadian law.
Neither theCanadian Securities Exchange nor its regulation services provideraccepts responsibility for the adequacy or accuracy of this newsrelease.
CAUTION REGARDING FORWARD-LOOKINGINFORMATION:
Cautionary Note RegardingForward-Looking Statements: This release includes certain statementsand information that may constitute “forward-looking information”within the meaning of applicable Canadian securities laws. Allstatements in this news release, other than statements of historicalfacts, including statements regarding future estimates, plans,objectives, timing, assumptions or expectations of future performance,including the expected timing and ultimate completion of theCompany’s first shipments of tobacco products to Western Canada, areforward-looking statements and contain forward-looking information.Generally, forward-looking statements and information can beidentified by the use of forward-looking terminology such as"intends" or "anticipates", or variations of suchwords and phrases or statements that certain actions, events orresults "may", "could", "should","would" or "occur". Forward-looking statements arebased on certain material assumptions and analysis made by the Companyand the opinions and estimates of management as of the date of thisnews release, including that the Company will remain on track to shipits first order to Western Canada, without material manufacturing,shipping and/or regulatory delays. These forward-looking statementsare subject to known and unknown risks, uncertainties and otherfactors that may cause the actual results, level of activity,performance or achievements of the Company to be materially differentfrom those expressed or implied by such forward-looking statements orforward-looking information. Important factors that may cause actualresults to vary include: risks associated with the production,manufacturing and shipping of tobacco products, and delays resultingfrom or inability to obtain any required regulatory approvals.Although management of the Company has attempted to identify importantfactors that could cause actual results to differ materially fromthose contained in forward-looking statements or forward-lookinginformation, there may be other factors that cause results not to beas anticipated, estimated or intended. There can be no assurance thatsuch statements will prove to be accurate, as actual results andfuture events could differ materially from those anticipated in suchstatements. Accordingly, readers should not place undue reliance onforward-looking statements and forward-looking information. Readersare cautioned that reliance on such information may not be appropriatefor other purposes. The Company does not undertake to update anyforward-looking statement,forward-looking information or financial out-look that areincorporated by reference herein, except as required by applicablesecurities laws.
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