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Private Placement: Harrys Manufacturing (CSE:HARY)

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The company is looking to raise gross proceeds of up to $750,000 from the placement of up to 6,250,000 units priced at $0.12 per unit. The units consist of 1 share and 1 warrant, with the warrant exercisable at $0.20 for 24 months.

Additional Information:

Company: Harrys Manufacturing
Website: http://www.HarrysMFG.com
Stock Symbol: CSE: HARY
Date Published: Mar 15, 2021
Transcript: Available

Video Transcript:

I’m Megan Edwards for Investmentpitch Media

Harrys Manufacturing, a wholesale distributor of value priced, high quality, 100% natural tobacco cigarettes, has announced a non-brokered private placement.

The company is looking to raise gross proceeds of up to $750,000 from the placement of up to 6,250,000 units priced at $0.12 per unit.

The units consist of 1 share and 1 warrant, with the warrant exercisable at $0.20 for 24 months.

The shares are currently trading at $0.15.

Proceeds will be used for general working capital purposes and to fund the company’s entrance into the Canadian tobacco market, including initial product inventory purchases, excise taxes, regulatory security deposit requirements and staffing.

Ken Story was recently appointed President and CEO of the company and its wholly-owned subsidiary, Harrys International Manufacturing Inc.

He brings more than 35 years’ experience in the tobacco industry, having started as a sales rep at Imperial Tobacco.

Ken’s many roles include President of the National Smokeless Tobacco Company, a subsidiary of U.S. Tobacco, now Altria, and Director of Sales for House of Horvath Inc., a family-owned manufacturer of cigars and importer of global brands.

In those roles, Ken has led consumer-focused sales and marketing teams and he is credited with achieving consistent revenue growth, while building a strong network of industry associates in Canada.

Recognized in retail and wholesale channels as a strategic supply channel partner, he was honored as Outstanding Industry Leader of the Year in 2011 by the National Convenience Store Distributors Association.

In order to facilitate this appointment, Kevin Kohanik stepped down from his position as President and CEO but will remain on the board of directors.

Harrys utilizes various types of tobacco blends to satisfy customer demands and preferences for 100% natural tobacco products that meet Health Canada standards.

In November 2020, the company, through its subsidiary, entered into an exclusive manufacturing agreement with Abenaki Enterprise a private cigarette manufacturer operating out of Odanak, Quebec, to manufacture and supply Harrys with tobacco cigarette products for sale and distribution in Canada.

The Manufacturing Agreement shall continue for an initial term of five years and will automatically renew on a yearly basis thereafter, subject to earlier termination.

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 previously 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."

For more information, please visit the company’s website at www.HarrysMFG.com, contact Corporate Communications at 778-378-9375 or email IR@HarrysMFG.com.

I’m Megan Edwards for Investmentpitch Media