Production Underway for Harrys First Order for Shipping to Western Canada Customers

(via TheNewswire)

Vancouver, British Columbia – TheNewswire - September 16, 2022 – Harrys International Manufacturing Inc., (a wholly owned subsidiary of Harrys Manufacturing Inc. (“Harrys” or the “Company”) (CSE:HARY), (OTC:WSRRF) is pleased to announce that the production process has begun for the first order of Harrys® Premium King Size cigarettes. Once completed, we expect to ship to the four Western Provinces, British Columbia, Alberta, Saskatchewan and Manitoba by the end of this month.  

Management recognizes there have been significant delays in getting our product to market, mainly related to the requirement to switch over to slide and shell packaging.  The Company anticipates it’s first shipments to arrive at our distribution partners in Western Canada the first week of October 2022 and available for sale in various retail locations shortly thereafter.  

Ken Storey, CEO stated; “Despite some ongoing challenges, we continue to make significant progress toward entering the Canadian market with a viable, low-priced alternative for adult smokers. I’d like to thank our manufacturing partners for their continued efforts to bring our brands to market, as well as our shareholders and distribution partners who have supported us through these delays. We plan to have Harrys® available in several regions in the country in the very near future.”    

Securities for Debt Transactions

The Company has entered into debt settlement agreements with certain creditors (the “Creditors”) to settle an aggregate of CAD$81,025 in debt (the “Debt”). In settlement of the Debt, the Company issued an aggregate of 810,250 units of the Company (the “Units”) at a deemed price of $0.10 per Unit (the “Debt Settlement”). Each Unit was comprised of one common share in the capital of the Company (a “Share”) and one Share purchase warrant (a “Warrant”). Each Warrant will entitle the holder thereof to purchase one additional Share (a “Warrant Share”) at a price of $0.12 per Warrant Share for a period of twelve months from the issue date.

Three of the four Creditors are non-arm’s length parties of the Company and the issuance of the such Units to the non-arm’s length Creditors each constitute a “related party transaction” as defined in Multilateral Instrument 61-101 - Protection of Minority Securityholders in Special Transactions (“MI 61-101”). The Company is relying on the exemption from valuation requirement and minority approval pursuant to subsection 5.5(a) and 5.7(1)(a) of MI 61-101, respectively, as the securities do not represent more than 25% of the Company’s market capitalization, as determined in accordance with MI 61-101. The participation by the non-arm’s length Creditors in the Debt Settlement was approved by the Company’s board of directors.

All securities issued in connection with the Debt Settlement are subject to a statutory hold period of four months plus a day from the date of issuance in accordance with applicable securities legislation.

Warrant Repricing

The Company also announces that it will amend the exercise price of a total of 2,163,400 common share purchase warrants (the “Repriced Warrants”), which are exercisable to acquire common shares in the capital of the Company. The Repriced Warrants were originally issued on July 11, 2022 and are currently exercisable at a price of $0.12 per Share. The Company will reprice the exercise price of the Repriced Warrants to $0.10 per Share.

About Harrys

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

Ken Storey President & CEO

For further information, please contact:

Corporate Communications Telephone: 604-349-3011 Email: [email protected]

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.

CAUTION REGARDING FORWARD-LOOKING INFORMATION:

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 expected timing and ultimate completion of the Company’s first shipments of tobacco products to Western Canada, 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, including that the Company will remain on track to ship its first order to Western Canada, without material manufacturing, shipping and/or regulatory delays. 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: risks associated with the production, manufacturing and shipping of tobacco products, and delays resulting from or inability to obtain any required regulatory approvals. 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.

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