CanaFarma is in the process of developing its vertically integrated “Seed-to-Sale” operations, which it expects will enable it to maximize operational efficiency and deliver high quality and reliably sourced product. CanaFarma is focused on becoming a fully integrated hemp company with the ability to legally cultivate, extract, manufacture and distribute hemp and CBD infused products. 

CanaFarma is working to become the first producer in the CBD industry with its own: 

Exclusive farm for hemp cultivation (completed) 

Extraction and Processing facility (target Q2 2020)  

Manufacturing facility (target Q1 2020)

Research staff (completed)

Marketing Team (completed) 

Information and Marketplace Portal (target Q2 2020). 

Farming and Growing 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. CanaFarma’s subsidiary operates a 55-acre farm in Duchess County, ideal for growing top quality, organic, nonGMO, pesticide-free hemp.

The ability to directly oversee the cultivation of its own hemp allows CanaFarma to maintain the highest quality-control standards in its primary ingredient. This will also shield CanaFarma from volatile fluctuations in hemp biomass prices. With the currently booming hemp-based product market, a general uncertainty looms over the marketplace as to whether there will be enough hemp to fill the demand of CBD product manufacturers in the near future. 

This could be exacerbated by the increasing frequency of climate-related disasters ruining agricultural crops throughout the U.S. In addition to ensuring the quality and availability of its own hemp supply, CanaFarma intends to designate a small portion of its acreage to research and testing additional strains of hemp and cultivation methods. Coupled with CanaFarma’s own extraction and processing facility, this is expected to allow CanaFarma to develop and accurately track the efficacy of countless formulations with different hemp strains and processing method combinations. 

CanaFarma’s own farm is expected to produce an annual yield of approximately 130,000 to 200,000 pounds which, if attained, will enable it to fully cultivate and source its own hemp for its branded products while profitably selling the remainder of its crop as commodity biomass. Based on current estimates, CanaFarma expects to process approximately 40,000 lb of its cultivated hemp for its own finished products in its first year, with the remainder sold as commodity biomass. As CanaFarma’s own products gain traction in the marketplace, CanaFarma expects to utilize a greater proportion of its annual hemp yield for its own products in future years, while selling a smaller percentage as commodity biomass. 

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

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