Harrys Manufacturing Inc. ("Harrys" or the "Company") announced 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.