Vancouver, British Columbia – September 4, 2019 – Harrys Manufacturing Inc. (CSE:HARY, OTCQB:WSRRF) (“Harrys” or the “Company”) is pleased to announce that further to its news release dated August 15, 2019 it has entered into a strategic production agreement dated September 3, 2019 (the “Strategic Agreement”) with Sopatyk Seed Farms Ltd. (“Sopatyk Farms”) for the operation of hemp cultivation facilities in Canada (the “Transaction”).
Pursuant to the terms of the Strategic Agreement, Harrys and Sopatyk Farms intend to jointly manage a facility on Sopatyk Farms property (the “Facility”) located in Saskatoon, Saskatchewan for the cultivation of hemp. Under the terms of the Strategic Agreement, Harrys will fund the operation of the Facility and Sopatyk Farms will provide its farming expertise to cultivate and grow hemp.
Pursuant to the terms of the Strategic Agreement, Sopatyk Farms will initially plant a test plot of 50 acres upon receipt of the requisite licenses required under the Cannabis Act (Canada) and other applicable laws, with the option to increase up to 2,000 acres. Harrys is responsible for engaging a licensed processor to process the hemp using Harrys’ rolling technology. The Strategic Agreement contemplates entering into a tripartie processing agreement between Harrys, Sopatyk Farms and a licensed processor to produce and sell hemp cigarettes.
The continuation of the Strategic Agreement is subject to the satisfaction of a number of conditions, including but not limited to: receipt of all licenses required to cultivate and grow hemp and hemp related products; the parties obtaining all consents, waivers and corporate and third party approvals necessary, including any required approval of the Canadian Securities Exchange; finding a suitable licensed third party processor to produce the hemp cigarettes; and receipt of all permits, licenses, zoning approvals and any other related approvals required for the Facility.
The parties anticipate the initial test plot of 50 acres will cost $1,000 per acre or approximately $50,000 in total and planting will commence in spring of 2020. Sopatyk Farms will file its Industrial Hemp License Application in September 2019 to reactivate its license prior to planting.
Further to the terms of the Strategic Agreement, Harrys will grant Sopatyk Farms 500,000 stock options exercisable for a five year term at an exercise price of $0.125 per common share.
About Sopatyk Farms
Sopatyk Farms is a private Canadian company, incorporated under the laws of Saskatchewan. For the past 41 years Mr. Jeff Sopatyk has been a prominent farmer and select seed grower in the Saskatoon, Saskatchewan area.
During this time Mr. Sopatyk established a commercial seed growing business and is recognized as a pedigree and select status grower. He also has cooperated with several researchers from the University of Saskatchewan over the years with on farm research, focusing on environmental issues, germ plasm trials, inoculants, fertilizers and plant breeding programs.
Over the past 20 years Sopatyk Farms has focused on a wide array of seed crops including wheat, barley, lentils, peas, and fava beans, as well as industrial hemp from 2008 to 2013 on its 7,000 acres farm and property. Mr. Sopatyk was a director of the Saskatchewan Pulse Growers Association as well as a Director of Pulse Canada. He believes that sustainability of agriculture is crucial with the world population expecting to rise dramatically. Mr. Sopatyk has a diploma in Agriculture from the University of Saskatchewan.
Grant of Stock Options
Pursuant to the Company’s stock option plan, the Company has granted an aggregate of 200,000 stock options (the “Options”) to two Consultants of the Company at an exercise price of $0.125 per common share exercisable for a five year term expiring September 4, 2024. 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 international customers. Harrys utilizes various types of tobacco and blend components from Canadian growers to satisfy customer demands sand 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.
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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 Sopatyk Farm’s plan to obtain a license to cultivate hemp, the Company’s plan to enter into a definitive processing agreement and the third party processor’s ability to produce hemp and hemp-related products 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 press release, including that the Company’s strategic production program will be successful in cultivate hemp and find a processor to produce hemp and hemprelated products and that the Company will be successful in entering into a definitive processing agreement. 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 forwardlooking information. Important factors that may cause actual results to vary, include, without limitation, the strategic production program will not be successful in cultivate hemp and the processor produce hemp and hemp-related products; Harrys and Sopatyk Farm’s ability to secure requisite licensing to cultivate hemp; future legislative and regulatory developments involving hemp and/or cannabis in Canada and internationally and/or the Company will not be successful in reaching a definitive processing agreement. 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 in accordance with applicable securities laws.