Vancouver, British Columbia, March 3, 2022 – Harrys Manufacturing Inc. (“Harrys” or the “Company”) (CSE:HARY, OTCQB:WSRRF) announced that the Company has entered into a convertible loan agreement (the “Note”) with an arm’s length private lender in the aggregate principal amount of up to $100,000 (the “Principal Loan Amount”).
The Note bears interest at 12% per annum and matures six (6) months from the date of issuance (the “Maturity Date”). At any time prior to the Maturity Date on at least 10 days prior written notice to the Company, the lender may, in its sole discretion, elect to convert all, but not less than all, of the Principal Loan Amount into a number of common shares of the Company equal to the quotient of the Principal Loan Amount and $0.08 (the “Conversion”). Any interest that accrues and is payable on amounts outstanding under the Note will be paid in cash and is not eligible for Conversion.
The Note and all securities issued in connection with the Note will be subject to a statutory hold period of four (4) months and a day from the date of issuance in accordance with applicable securities law.
The Company intends to use the Principal Loan Amount for general working capital purposes and to purchase raw materials, including, without limitation, packaging materials.
The securities being referred to in this news release have not been, nor will they be, registered under the United States (U.S.) Securities Act of 1933, as amended, and may not be offered or sold in the U.S. or to, or for the account or benefit of, U.S. persons absent registration or an applicable exemption from the registration requirements. This news release does not constitute an offer to sell or the solicitation of an offer to buy nor shall there be any sale of the securities in any jurisdiction in which such offer, solicitation or sale would be unlawful.
President & CEO Ken Storey said, “We are grateful for the continued support of our long-term stakeholders. Proceeds from this transaction will be used for working capital and securing future supplies of board stock, which is a critical component of packaging. As you may know, pulp, paper and allied products are volatile at the moment, which means we need to secure product farther into the future to help ensure continuity of supply. I’m confident we’ll need a significant supply of packaging as we move forward.”
Harrys is a wholesale distributor of value priced, high quality, 100% natural tobacco cigarettes. Harrys utilizes various types of tobacco blends 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
President & CEO
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Information in this news release concerning the Company’s products is intended for the exclusive use of market investors and is not in any way intended to promote tobacco products to consumers, which is prohibited by Canadian law.
Neither the Canadian Securities Exchange nor its regulation services provider accepts responsibility for the adequacy or accuracy of this news 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 Company’s anticipated use of the Principal Loan Amount, the Company’s expectations concerning market supply/volatility of pulp, paper and allied products, the Company’s expectations concerning its future need for packaging supplies, and any expectations related to the Conversion are forward-looking statements and contain forward-looking information. Generally, forward-looking 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 news 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: uncertainties affecting the Company’s expected use of the Principal Loan Amount, the Company’s ability to enter the Canadian tobacco market, the Company’s ability to obtain any required provincial and federal licenses and registrations to operate in the tobacco industry, and the Company’s ability to predict market trends. 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 forward-looking 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 as required by applicable securities laws.