We broke down the information in the December 2019 Prospectus, which included companies such as CWB (Charlotte’s Web), CV Sciences (PlusCBD), Isodiol, Elixinol, and Mary’s Nutritionals. Almost all companies in the fractured CBD market are focused on health and wellness solutions. CanaFarma will differentiate itself from its competitors in various ways, including by offering a “Seed-to-Sale” solution, where CanaFarma will control the quality of the product from growing to harvest to processing, to manufacture, to sale. 

In an industry clouded by consumer confusion, suspect products, and questionable marketing, The company will focus on developing a highly trusted brand. There is the potential that CanaFarma will face intense competition from other companies, some of which can be expected to have longer operating histories and more financial resources and production and marketing experience.

In many early-stage markets where CanaFarma operates, CanaFarma expects to face additional competition from new entrants. To remain competitive, CanaFarma will require a continued high level of investment in its farming, extracting and processing facilities, manufacturing facilities, products and technologies, distribution, research and development, marketing, sales and client support. 

CanaFarma may not have sufficient resources to maintain its farming, extraction and processing facilities, manufacturing facilities, research and development, marketing, sales and client support efforts on a competitive basis which could materially and adversely affect the business, financial condition and results of operations of the resulting company. Competitive Edge The “Seed-to-Sale” vertical business model that is being undertaken by CanaFarma is expected to enable CanaFarma to maximize cost savings and retain margin at all levels of the cultivation through the sales process. 

CanaFarma management expects that once the company owns the assets and every step of the CBD product process, they should be able to maintain high standards for manufacturing and quality control as compared (for example) to a simple brand manufacturer who has to rely on the quality and purity of its purchased hemp biomass from different cultivators or the stringency and rigor of a busy third party processor. 

In addition to full control and oversight, this complete vertical integration (once completed) is also expected to enable CanaFarma to conduct and implement research that would be impossible for other companies. For example, owning its own hemp cultivation process will enable CanaFarma to experiment with different hemp strains that can be best paired with specific processing methods to create the best possible product for different segments of the CBD market, such as consumers looking for chronic pain relief vs. sleep cycle regularity vs. improved appetite, etc. 

In addition to helping create the best possible product for each market segment, once CanaFarma owns every step of the production process, it should be capable of reproducing its products consistently year-after-year. Once vertical integration is complete, CanaFarma expects to have a unique ability to conduct and implement multistage (cultivation, processing, etc) research, which should allow CanaFarma to hire one of the best possible research teams in the industry. 

At the present time, CanaFarma has appointed Lekhram Changoer as Chief Chemist and Technologist. Mr. Changoer holds a Bachelor’s Degree in Analytical/Organic Chemistry and a Master’s Degree in Organic Chemistry. He was one of the founders of CanChew Biotechnologies, LLC in 2012 and is a board member and partner of the Sanammad Foundation and Sanammad Pharmaceuticals BV.

 He is the originator of multiple patents including patent-pending technology on chewing gum compositions comprising cannabinoids, together with his Sanammad partners. He has over 20 years of experience in various intellectual property-based pharmaceutical and dental companies in different stages from clinical development to the global sales of registered products. 

It is expected that Mr. Changoer will bring his background and ongoing research and development activities into CanaFarma going forward. With the recent trend of legalization of cannabis by many States and the 2018 Farm Bill, there are myriad CBD-based product brands in the market. 

Unlike the majority of products in the market that only offer CBD-isolate products, CanaFarma’s products will include the full spectrum of cannabinoids found in hemp. High Absorption and efficacy rates are one of the biggest inhibitors of ingested CBD-based products is that over half of it is neutralized and wasted by the gastro-intestinal digestion system. As a result, all common forms such as tincture oils, gummies, and capsules provide low absorption/bioavailability rates.

 In response, CanaFarma utilizes a proprietary patented delivery system that dissolves directly from saliva in the mouth into the bloodstream below the tongue resulting in 84% absorption within 7 minutes, thereby requiring a substantially lower dosage for the same effect. See 

* All of the information in this article is taken directly from the December 2019 Prospectus, and edited for simplification.

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