Total of CAD$ 7,909,064 raised from private placement and warrants exercised

Vancouver, British Columbia and Rehovot, Israel--(Newsfile Corp. - October 4, 2021) - BioHarvest Sciences Inc. (CSE: BHSC) ("BioHarvest" or the "Company") announces the closing of its second and final tranche of the private placement announced on August 4^th, 2021. Under this private placement, the Company issued a total of 7,781,375 units ("each a Unit') for proceeds of CAD$ 3,501,619 with net proceeds of CAD$ 3,484,849 after payment of commissions and finders fees of CAD$ 16,770.

Under the first tranche the Company issued 6,845,368 units for proceeds of CAD$ 3,080,850.60, net CAD$ $3,066,850.60 after payment of commissions and finders fees. This second tranche consists of 936,007 units for proceeds of CAD$ 421,203.25, net CAD$ 417,998.00 after payment of CAD$ 3,025.15 in commissions and finders' fees.

Each Unit consists of one common share at CAD$0.45, and one half of one share purchase warrant with each whole warrant (a "Warrant") entitling the holder to purchase one additional Common Share at a price of CAD 0.55 per share for a period of one year from date of issuance.

The Company further announces that in the period since their issuance, 18,217,384 warrants issued in connection with previously completed private placements have been exercised for total proceeds to the Company of CAD$ 4,407,445. This includes 15,110,998 warrants with an exercise price of CAD$ 0.23 (October 2018 private placement) and 3,106,386 warrants with an exercise price of CAD$ 0.30 (October 2019 private placement).

The Company has and will continue to use the proceeds to:

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

Ilan Sobel, CEO, said "Adding CAD$ 7,892,294 to the Company's treasury demonstrates investor confidence in the Company's strategy and leadership. The funds raised will support the current growth phase of the Company and further enable us to build the biotech company we envision."

About BioHarvest Sciences Inc.

BioHarvest Sciences Inc. (CSE: BHSC) is a fast-growing Biotech firm listed on the Canadian Securities Exchange. BioHarvest has developed a patented bio-cell growth platform technology capable of growing the active and beneficial ingredients in fruit and plants, at industrial scale, without the need to grow the plant itself. This technology is economical, ensures consistency, and avoids the negative environmental impacts associated with traditional agriculture. BioHarvest is currently focused on nutraceuticals and the medicinal cannabis markets. 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 increased marketing resources behind the VINIA® US launch will result in increased success as this is subject to consumer preferences which are uncertain and change over time. 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. There is no assurance the Company will be able to hire suitable persons for the key roles needed for further expansion as recruitment and hiring have been difficult in many areas coming out of the pandemic.

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/98428