CanaFarma is a company that has been formed to take advantage of the newly emerging Hemp & CBD industry, which was legalized by the 2018 Farm Bill. CanaFarma is bringing together four essential components that it deems necessary to build a company capable of becoming a leader in the rapidly growing CBD market.
1. Growing top-quality hemp.
2. a state of the art extraction and processing facility
3. manufacturing innovative, cannabinoid-formulated products
4. the development of a powerful Direct-to-Consumer marketing engine.
This marketing engine reflects CanaFarma’s unique ability to generate immediate revenue and profitability while also creating and incubating a sizable customer and lead database. These unique competitive advantages are further enhanced by CanaFarma’s farming assets and marketing skill sets, giving CanaFarma the eventual ability to reduce hemp oil costs for our products and create additional revenue streams in the sale of our own grown bio-mass.
CanaFarma is headquartered in downtown Manhattan, New York. In the next twelve months, subject to the successful execution of its business plan and capital raising efforts, CanaFarma intends to expand its hemp farm footprint through the acquisition or lease of further farms, and also to invest in an extraction and processing facility, as well as a manufacturing facility. Furthermore, CanaFarma intends to expand the range of its products offered under its YOOFORIC brand.
The company’s objectives are to grow top-quality hemp. CanaFarma (via its subsidiary, Simple Solutions) was one of the first entities to be granted a hemp cultivation license by the State of New York. Its growers have many years’ experience in growing and processing hemp. With its subsidiary having a right to grow hemp on a 55-acre farm in Dutchess County, NY.
CanaFarma is ideally positioned to benefit from the current boom in the CBD-based product market. The farm will produce top quality, organic, non-GMO, pesticide-free hemp, with an expected annual yield of 130,000 to 200,000 pounds. The company expects that once it completes its acquisition of an extraction/processing facility it will be able to fully cultivate/source its own hemp for its branded products, while profitably selling the remainder of its crop as commodity biomass to supplement cash flow.
CanaFarma is currently in discussions with two potential extraction and processing facility opportunities in the State of New Jersey. The State of New Jersey is not yet accepting applications for processing licenses, but it is CanaFarma’s intent to make the application within the next few months as soon as applications are being accepted. In addition, CanaFarma is investigating the establishment of an extraction facility in Pennsylvania, where no license is currently required for these activities.
Due to the high capital and expertise requirements, there is a significant shortage of processors relative to hemp cultivators and product manufacturers. In addition to giving CanaFarma operational flexibility to process hemp for its own branded products, CanaFarma expects to process significant amounts of hemp for third parties at comparatively high-profit margins.
CanaFarma has begun selling its first two products (chewing gum and a tincture) under its private labeling agreement. These products are differentiated and characterized by two key attributes:
a. Full-Spectrum Phytocannabinoid Hemp Oil
b. High Absorption
The company also is designing its own products, the first of which (a gum with a liquid insert) is expected to be launched for sales in 2020. CanaFarma is currently exploring alternatives for a manufacturing facility, which it expects to acquire within the first quarter of the 2020 calendar year.
CanaFarma has begun to market and sell its first two products through a proprietary network of affiliate-marketing “influencers” who are engaged to drive customers to CanaFarma’s presence on the Internet. The business model involves paying a relatively small percentage commission for actual paid sales by referred customers, thereby substantially reducing risk and resulting in higher bottom lines. CanaFarma’s “pay for performance” business model, ensures that the merchant does not incur a marketing expense unless actual sales are made.
CanaFarma was incorporated in March 2019. In April 2019, CanaFarma entered into three key agreements: the Simple Solutions Purchase Agreement, the AXIM Agreement, and the Intelanyze Agreement, which collectively form the basis of CanaFarma’s four key business objectives
1. Grow top-quality hemp
2. Operate a state of the art processing facility
3. Manufacture innovative FDA-registered products
4. develop a powerful DTC-marketing engine.
Since March 2019, CanaFarma has raised a total of $11,263,000 in aggregate gross proceeds through the sale of CanaFarma Shares. Sales of CanaFarma’s first product, YOOFORIC chewing gum, commenced in June 2019, with gross revenues for the months of June, July, August, and September is $60,841, $202,243, $595,148 and $832,962 respectively. CanaFarma has not been the subject of any bankruptcy or any receivership or similar proceedings against it or any voluntary bankruptcy, receivership or similar proceedings by it.
* All of the information in this article is taken directly from the December 2019 Prospectus, and edited for simplification.