CanaFarma Hemp Products Corp. announced the completion of its private placement which was previously announced in early May of this year.
The units are priced at Cdn$0.63 per Unit. CanaFarma has issued an aggregate of 8,290,627 units, for gross proceeds of Cdn$5,223,095 which is approximately $3,812,860 US Dollars. Each Unit consists of one common share and one common share purchase warrant. Each whole warrant entitles the holder to purchase one Common Share at an exercise price of Cdn$0.78 each for a period of five years. In accordance with applicable securities laws, all of the Common Shares and Warrants issued under the Offering are subject to a four-month plus one day holding period, which will expire on October 25, 2020.
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.
The net proceeds of the Offering will be used for the purposes of:
- Funding the potential acquisition of manufacturing and extraction facilities
- Scaling company sales and marketing activities
- Research and Development
- General working capital and for corporate purposes
A total of U.S.$10,000 has been paid as a finder’s fees or commissions in connection with the offering.
In the last few weeks, CanaFarma outlined immediate plans to expand manufacturing and product development. They will be able to, with the partnership of PharmOps to produce pharmaceutical and nutraceutical products. On April 24th, 2020, CanaFarma signed a Letter of Intent to acquire PharmOps Ltd., and its cGMP (current Good Manufacturing Practices) licensed facility in New Jersey. Today, as due diligence, they continue the acquisition.
Currently, CanaFarma produces five other products under their YOOFORIC and State of Mind brands, including their most popular product, a full spectrum chewing gum with an industry-leading absorption rate of 84%. They also have two hemp oil tinctures, and two pain-relieving creams, and are adding a new skincare line which will be released by the end of June. Their most recent product launch includes two new hemp oil-infused chewing gums coming this July, called YOOFORIC Rise for the morning, and YOOFORIC Pillow Talk for the evening. They come in a mint flavor for the morning gum and cinnamon flavor for the evening gum.
David Lonsdale, CEO of CanaFarma, said, “we are thrilled to welcome all of the new shareholders that have participated in our Offering. Completion of this Offering in the midst of a global pandemic is a major vote of confidence by our investors and another example of the support and enthusiasm surrounding our Company as we continue to grow and expand our product lines and operations. We look forward to rewarding all of our investors for their votes of confidence.”