Twitter Facebook LinkedIn YouTube

Harrys Manufacturing featured in Investmentpitch Media video

Video Platform Video Management Video Solutions Video Player

Today’s feature company is Harrys Manufacturing, a distributor and manufacturer of affordable, high quality, organically grown tobacco cigarettes for domestic and international customers.

Tags:

Additional Information:

Company: Harrys Manufacturing
Website: http://www.HarrysMFG.com
Stock Symbol: CSE: HRY
Date Published: Aug 7, 2020
Transcript: Available

Video Transcript:

I’m Cassandra Bolinski for Investmentpitch Media

Today’s feature company is Harrys Manufacturing, a distributor and manufacturer of affordable, high quality, organically grown tobacco cigarettes for domestic and international customers.

In May 2019, Health Canada announced that in 2020 it will be introducing new plain packaging regulations on tobacco products sold in Canada.

The new regulations prohibit brand colors, graphics and logos on packages, making all packaging identical other than the product name, which has to be displayed in identical font.

The North American market is predominantly dominated by a few large tobacco companies, which until recently made it difficult to introduce a new product in the Canadian market.

Kevin Kohanik, CEO, stated: "This is great timing for Harrys to enter the Canadian tobacco cigarette market. Now that new regulations from Health Canada requires all manufacturers to use plain packaging for tobacco products sold in Canada, it creates an opportunity for Harrys to enter the market as a quality, value priced cigarette alternative to the large tobacco companies who have been dominating the market for years."

Harrys management team brings over 50 years of combined experience in the domestic and international tobacco industry.

Harrys Manufacturing, through its wholly-owned subsidiary, Harrys International Manufacturing, recently submitted applications to the Canada Revenue Agency and the Ministry of Finance in both British Columbia and Alberta for wholesale distribution and sales of tobacco cigarettes, including application for approval of its new tobacco cigarette distribution facility located in Abbotsford, British Columbia.

The new facility is approximately 5,000 square feet and was designed to store tobacco cigarette products that are destined for sale by Harrys national wholesale distributors to retail customers across Canada.

Harrys cigarettes are manufactured in Canada from rich premium grade leaves of Virginia tobacco which are organically grown and harvested on Canadian Farms, by Canadians.

All Harrys cigarette packages sold in Canada will contain the required federal excise tobacco stamp, which indicates that federal excise duty has been paid and that the product was manufactured legally, and identifying the Province designated for sale.

The excise stamp has state-of-the-art visible and hidden identifiers and security features similar to those found on Canadian banknotes, such as unique colour-shift ink that changes from red to green when the stamp is tilted, along with hidden security features that only federal and provincial law enforcement agencies can detect.

While the company cannot guarantee if or when it will ultimately receive approval to transact business in BC or Alberta, management is optimistic that approval will be obtained in the foreseeable future.

Under the company’s business model, no additional funds are required for the production of tobacco cigarettes destined for sale outside of Canada, as the company requires a 50% deposit upon receipt of all purchase orders, which covers the cost of production, with the balance of 50% paid prior to shipping of the finished products.

For any future tobacco cigarette sales in Canada the company will rely on existing funds to cover the cost of manufacturing and the cost of the required Federal Excise Tax stamps, prior to receiving payment from its Canadian wholesale distributor.

In April, the company closed a non-brokered private placement, raising gross proceeds of $420,000 from the placement of 7 million units priced at $0.06 per unit, with each unit containing 1 share and 1 warrant, with the warrant exercisable at $0.12 for 6 months.

With the shares currently trading at $0.225, it is expected these warrants will be exercised before their expiry in October, which should add another $840,000 to the company’s treasury.

For more information, please visit the company’s website at www.HarrysMFG.com, contact Kevin Kohanik, CEO, at 604-565-5100 or email IR@HarrysMFG.com.

I’m Cassandra Bolinski for Investmentpitch Media