Vancouver, British Columbia, February 15, 2024 – Harrys Manufacturing Inc. (CSE: HARY) (the “Company”, “Harrys”, “we” or “our”) is pleased to provide an update on Harrys International Manufacturing Inc. (HIMI), our cigarette marketing subsidiary.
Rollout of HARRYS®️ Special Smooth King Size 20’s continues and the feedback has been positive. We anticipate the new brand will make a significant contribution as we expand distribution. Meanwhile, HARRYS®️ Special, our full-flavoured offering is enjoying repeat sales and modest volume growth in same-store sales.
We remain confident our new trade-to-trade portal, previously announced on September 27, 2023, will significantly streamline our order processing, and help us build an exclusive supply chain. Work continues as we align our “back-office” with a recognized e-commerce platform. We expect the completion of Beta testing in the next few weeks. The new platform will be accessed through our upgraded website, which we expect to re-open soon.
The industry is significantly challenged by unregulated tobacco on the market. We applaud the efforts of the Combined Forces Special Enforcement Unit of British Columbia (CFSEU-BC) on their recent seizure of 35 pallets of contraband tobacco, reportedly the largest of its kind in BC at roughly $11 Million. Their efforts clearly illustrate the link between contraband products and organized crime and highlight the significant harm to legal businesses such as ours, and our customers. Management feels this recent industry event confirms our business plan is the correct strategy for current markets. That being, to offer adult consumers quality, value-priced regulated tobacco products that are made right here in Canada, supporting Canadian jobs and the Canadian economy.
“We’re pleased to be able to offer HARRYS®️ products at an affordable price on the regulated market, and feel we represent a great alternative for adult consumers who can continue to choose products from their local convenience stores over the unregulated market,” says Ken Storey, Harrys’ Vice-President of Sales & Marketing.
About Harrys: Harrys aspires to deliver value to its shareholders by satisfying the preferences of adult tobacco consumers who are seeking a quality Canadian product at a value price. Harrys’ management team brings over 40 years of industry experience and works with distribution and retail partners who put their customers first.
ON BEHALF OF THE BOARD
Nick Brusatore
CEO
For further information, please contact:
Corporate Communications
Telephone: 604-565-5100
Email: IR@HarrysMFG.com
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 news 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 and assumptions or expectations of future performance, are forward-looking statements and contain forward-looking information, including without limitation, statements with respect to the continued rollout of HARRYS®️ Special Smooth King Size 20’s, the anticipated contribution to the Company of the rollout of HARRYS®️ Special Smooth King Size 20’s, the impact of the Company’s trade-to-trade portal in streamlining order processing and building on the Company’s supply chain, the expected completion of beta testing and launch of the Company’s ecommerce platform, expected timing of the re-opening of the Company’s website and adult cigarrete consumers preference for purchasing cigarettes at a convenience store over the unregulated market. 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 analyses 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 including, without limitation, delays or other unexpected issues in the manufacturing process, unexpected delays in beta testing and launching the Company’s e-commerce platform and changes in market trends and consumer preferences. 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 forwardlooking 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 outlook that are incorporated by reference herein, except as required by applicable securities laws.