Vancouver, British Columbia – December 19, 2019 – Harrys Manufacturing Inc. (CSE:HARY, OTCQB:WSRRF) (“Harrys” or the “Company”) wishes to announce that it’s wholly owned subsidiary Harrys International Manufacturing Inc. (“HIMI”) on December 18, 2019 has signed an independent sales agent agreement (“the Agreement”) with Altabac Inc. an Ontario Company, operated by Ken Storey (“Storey”) a seasoned professional in the North American tobacco industry (“the Consultant”).
As per the terms of the Agreement the Company has appointed the Consultant as its sales agent for the distribution and sale of cigarette cases to customers. Each case contains 50 cartons and each carton contains 200 cigarettes. Minimum order quantities are 100 cases for each purchase order.
Further to the terms of the Agreement, the Company will pay Altabac Inc. $5,000 plus GST compensation per month for an initial period of 3 months and will grant 250,000 Stock Options (“Options”) to Storey. The Options are exercisable for Shares on or before December 18, 2024 at an exercise price of $0.25 per Share. The Options vest as of the date of the grant. The Options and any common shares issued upon exercise will be subject to a four month and a day resale restriction from the date of grant.
The Company’s CEO, Kevin Kohanik stated, “We are very excited about the opportunity to enter a broader range of tobacco markets by utilizing Altabac’s existing relationships and distribution networks to sell Harrys premium brand cigarettes at a competitive discount price”.
About Ken Storey
Ken brings over 35 years’ experience in the tobacco industry. His career began with Imperial Tobacco (BAT) as a sales representative and his many roles include President of National Smokeless Tobacco Company, a subsidiary of US Tobacco (now Altria), 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, dynamic consumer-focused sales teams and was responsible for achieving consistent revenue growth. Ken also has extensive experience in the legal and regulatory markets and has worked from coast to coast (to coast) in Canada. He has worked with International companies such as Swisher International, Royal Agio and General Cigar. Ken is recognized in retail and wholesale channels as a strategic supply channel partner and was honored as Outstanding Industry Leader of the Year in 2011 by the National Convenience Store Distributors Association. Ken currently sits on the Board of Directors of B-O Wiberg Solutions AB, a patent holder in the Swedish Snus (smokeless tobacco product) Industry.
Grant of Stock Options
Pursuant to its incentive stock option plan, the Company has also granted an aggregate of 200,000 Options to certain consultants of the Company. The Options are exercisable for Shares on or before December 18, 2024 at an exercise price of $0.25 per Share. The Options vest as of the date of the grant. The Options and any common shares issued upon exercise will be subject to a four month and a day resale restriction from the date of grant.
Harrys is a distributor and manufacturer of affordable, high quality, organically grown tobacco cigarettes to domestic and international customers. Harrys utilizes various types of tobacco and blend components from Canadian growers to satisfy customer demands and preferences for products that meet Health Canada standards. Harrys management team brings over 50 years of combined experience in the domestic and international tobacco industry.
For more information, please visit: www.harrysmfg.com
ON BEHALF OF THE BOARD
“Kevin Kohanik” Director and CEO
For further information, please contact:
Glenn Little, Corporate Communications
Neither the Canadian Securities Exchange nor its Regulation Services Provider accepts responsibility for the adequacy or accuracy of this release.
Cautionary Note Regarding Forward-Looking Statements: This release includes certain statements and information that may constitute forward-looking information within the meaning of applicable Canadian securities laws. All statements in this news release, other than statements of historical facts, including statements regarding future estimates, plans, objectives, timing, assumptions or expectations of future performance, including the Canadian Securities Exchange approval for the amendment to the terms of the Warrants are forward-looking statements and contain forward-looking information. Generally, forwardlooking statements and information can be identified by the use of forward-looking terminology such as “intends” or “anticipates”, or variations of such words and phrases or statements that certain actions, events or results “may”, “could”, “should”, “would” or “occur”. Forward-looking statements are based on certain material assumptions and analysis made by the Company and the opinions and estimates of management as of the date of this press release. These forward-looking statements are subject to known and unknown risks, uncertainties and other factors that may cause the actual results, level of activity, performance or achievements of the Company to be materially different from those expressed or implied by such forward-looking statements or forward-looking information. Important factors that may cause actual results to vary, include, without limitation, the approval of the CSE. Although management of the Company has attempted to identify important factors that could cause actual results to differ materially from those contained in forward-looking statements or forward-looking information, there may be other factors that cause results not to be as anticipated, estimated or intended. There can be no assurance that such statements will prove to be accurate, as actual results and future events could differ materially from those anticipated in such statements. Accordingly, readers should not place undue reliance on forwardlooking statements and forward-looking information. Readers are cautioned that reliance on such information may not be appropriate for other purposes. The Company does not undertake to update any forward-looking statement, forward-looking information or financial out-look that are incorporated by reference herein, except in accordance with applicable securities laws.