CanaFarma Hemp Products Corp. has announced a private placement of units (each, a “Unit”), The company plans to raise up to U.S. $20,000,000 (approximately Cdn$28,300,000) through an offering of up to 45,000,000 units priced at Cdn$0.63 per unit.
Each Unit consists of one (1) share and one warrant, with each whole warrant exercisable at Cdn$0.78 for a period of 5 years from the date of the first closing under the offering. Upon completion of formal documentation, the closing of the offering is expected to occur with a receipt of all necessary regulatory approvals.
In accordance with applicable securities laws, all of the Common Shares and Warrants issued under the Offering will be subject to a four (4) month plus one day hold period.
The net proceeds of the Offering will be used for the purposes of:
- Funding the potential acquisition of manufacturing and extraction facilities
- Increasing the acreage of the business for hemp growth
- Scaling sales and marketing activities
- Completing complementary or synergistic mergers or acquisitions (if, as and when determined by the board of directors)
- General working capital and corporate purposes.
The securities offered hereby have not and will not be registered under the United States Securities Act of 1933 (the “1933 Act”) and may not be offered or sold in the United States or to U.S. persons (as defined in Regulation S under the 1933 Act) unless the securities have been registered under the 1933 Act, or are otherwise exempt from such registration.
This press release shall not constitute an offer to sell or the solicitation of an offer to buy nor shall there be any sale of the securities in any jurisdiction in which such offer, solicitation or sale would be unlawful.
CanaFarma Hemp Products Corp. through its brand line “YOOFORIC” is part of the growing $4 billion global CBD market with a line of hemp-oil infused gum, skin cream, and pain-relieving oil for joint and muscle relief. These products and services include growing top-quality hemp, providing hemp-processing services, and offering hemp-based products to consumers utilizing a direct-to-consumer marketing approach. According to the Brightfield Group, the CBD industry is estimated to grow upwards of $23.7 billion by 2023.