First tranche closed represents over three-quarters of the anticipated financing.

Vancouver, British Columbia and Rehovot, Israel--(Newsfile Corp. - August 30, 2021) - BioHarvest Sciences Inc. (CSE: BHSC) ("BioHarvest" or the "Company") is pleased to announce that it has closed the first tranche (the "First Tranche") of its non-brokered private placement (the "Private Placement") previously announced on August 4, 2021. Under the First Tranche, the Company has issued 6,845,368 units (each a "Unit") at $0.45 per Unit for gross proceeds of CAD$ 3,080,415.60, net CAD$ 3,066,850.60 after payment of commissions and finder's fees totaling CAD$ 13,565.

Each Unit is comprised of one common share of the Company (a "Common Share") in the capital of the Company and one-half (1/2) of one share purchase warrant. Each whole warrant (a "Warrant") entitles the purchaser to purchase one additional Common Share at a price of CAD 0.55 per Common Share for a period of one year from the date of issuance.

The securities issued under the Offering have a hold period expiring four months and one day from the date of issuance pursuant to applicable Canadian securities laws.

The securities described herein have not been, and will not be, registered under the United States Securities Act of 1933, as amended (the "U.S. Securities Act"), or any state securities laws, and accordingly, may not be offered or sold within the United States except in compliance with the registration requirements of the U.S. Securities Act and applicable state securities requirements or pursuant to exemptions therefrom. This press release does not constitute an offer to sell or a solicitation to buy any securities in any jurisdiction.

The net proceeds raised will be used to:

• Accelerate the Company's Cannabis development program.
• Provide for system upgrades in connection with the conversion of the existing 2 Tons/year VINIA® production facility into a Cannabis production facility to be operational in H1/2022.
• Enable the hiring of a number of key roles, which will be critical for the Company's further expansion.
• Provide funds for general corporate purposes.

"I am very pleased with how the financing has progressed. The company's strategy and growth plans have been well received by investors who have demonstrated their confidence in the company's leadership and capabilities by becoming shareholders." Ilan Sobel, CEO.

The Company intends to close the balance of the Private Placement by September 15, 2021.

About BioHarvest Sciences Inc.

Based in Vancouver, BC, BioHarvest Sciences Inc. is the developer and exclusive owner of the proprietary and patent-protected BioFarming technology. It is the first and only industrial-scale plant cell technology capable of producing the active plant ingredients without the necessity to grow the plant itself. The Company's technology is non-GMO and has already been validated by VINIA®, the red grapes cells functional food/dietary supplement produced and sold by BioHarvest Sciences Inc. The Company plans to generate significant revenue within the global nutraceutical ingredients and dietary supplements market with VINIA® and other Super Fruit Nutraceutical products. Further, by adapting this technology to the Cannabis plant, and building adequate production capacity, BioHarvest Sciences Inc.'s objective is to become a leading supplier of Cannabis for both medicinal and legal recreational purposes. Visit: www.bioharvest.com.

BioHarvest Sciences Inc.
Ilan Sobel, Chief Executive Officer

For further information, please contact:
Dave Ryan, VP Investor Relations & Director
Phone: 1 (604) 622-1186
Email: dave@bioharvest.com

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Forward-Looking Statements

Information set forth in this news release includes forward-looking statements that are based on management's current estimates, beliefs, intentions, and expectations, and are subject to a number of risks and uncertainties that could cause actual results to differ materially from those described in the forward-looking statements. There is no assurance of the imminent commissioning of the superfruit facility or the conversion of the two tons VINIA® facility to Cannabis production in the first half of 2022. These things are subject to construction and approval delays and uncertainties that may be beyond the control of BioHarvest. There is no assurance that market demand in the U.S. will be the same as Israel or that the Israeli sales numbers will translate proportionately to the U.S. market or that the Company will achieve significant revenues in the U.S. There is no assurance that we will achieve our objective of being a leading supplier of Cannabis. Delays and cost overruns may result in delays achieving our objectives obtaining market acceptance and regulatory approvals for geographic expansion is subject to risk and cannot be guaranteed. Projected sales of Cannabis will require the Company to obtain production and/or export licensing which cannot be assured.

All forward-looking statements are inherently uncertain and actual results may be affected by a number of material factors beyond our control. Readers should not place undue reliance on forward-looking statements. BHSC does not intend to update forward-looking statement disclosures other than through our regular management discussion and analysis disclosures.

Neither the Canadian Securities Exchange nor its Regulation Services Provider accept responsibility for the adequacy or accuracy of this release.

To view the source version of this press release, please visit https://www.newsfilecorp.com/release/94846