This weekend CanaFarma Hemp Products Corp. signed a Letter of Intent to acquire a privately owned manufacturing company in New Jersey.
This promising acquisition would include a 25,000 square foot manufacturing facility that currently produces pharmaceutical and nutraceutical products. CanaFarma will expand the facility to manufacture its YOOFORIC brand of hemp oil-based products. Their most recent product release was a Hemp Oil Infused Skin Cream. It is pain-relieving, supporting joint and muscle relief. CanaFarma also boasts their Hemp Oil Infused patented chewing gum with the best absorption rate on the market standing at 84%.
This large plant currently operates its production and manufacturing under the Food and Drug Administrator’s (FDA) “Current Good Manufacturing Practices” (cGMP). CanaFarma plans to acquire and produce their oil-based hemp products under the same cGMP regulations. According to the FDA, cGMP regulations “address matters of personal hygienic practices, design, and construction of a food plant and maintenance of plant grounds, plant equipment, sanitary operations, facility sanitation, and production and process controls during the production of food.” Companies that follow these processes do it to guarantee their items are produced to the specific requirements needed including identity, strength, quality, and purity.
The letter of intent signed by CanaFarma is non-binding and is currently in a due diligence period. According to CanaFarma, if the acquisition is successful, they will move forward and with the negotiation of “a definitive agreement for the acquisition of all of the assets of the private company.” CanaFarma most recently decided to go public on the renowned Canadian Securities Exchange. According to reports, the company has been projected to earn $45 million in revenue by the end of 2020.
David Lonsdale, CEO of CanaFarma said, “This has the potential to be another substantial step forward for CanaFarma, as we continue to execute on our overall strategic plan to build a completely vertically-integrated hemp-based company. Having our own manufacturing facility would not only allow us to scale production in support of our growing sales and product line expansion but also to bring new innovative products to market much faster under a more efficient and controllable cost structure.”