VANCOUVER, British Columbia, April 24, 2020 /PRNewswire/ -- CanaFarma Hemp Products Corp. (CSE: CNFA) (the "Corporation" or "CanaFarma") is pleased to announce that it has signed a Letter of Intent ("LOI") with a privately held company to acquire a manufacturing facility for its hemp oil-based consumer products operations.
The potential acquisition would include a 25,000 square foot facility in New Jersey, of which the private company currently uses a small part of the facility to manufacture certain pharmaceutical and nutraceutical products under "current Good Manufacturing Practices" (cGMP). It is the Corporation's intention to acquire and continue to produce these products under the cGMP designation, as well as to expand the use of the facility to manufacture Canafarma's YOOFORIC brand hemp oil-based consumer products.
The LOI is non-binding and a due diligence period is currently underway which, if successful, will be followed by the negotiation of a definitive agreement for the acquisition of all of the assets of the private company.
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."
About CanaFarma Hemp Products Corp.
CanaFarma Hemp Products Corp. is a full-service company operating in the hemp industry offering a full range of hemp-related products and services to the consumer wellness market. These products and services include growing top-quality hemp, providing hemp-processing services, and offering hemp-based products to consumers utilizing a well-established direct-to-consumer marketing approach.
CAUTIONARY STATEMENT REGARDING FORWARD-LOOKING INFORMATION: This news release includes certain "forward-looking statements" under applicable Canadian securities legislation. Forward-looking statements include, but are not limited to, the potential acquisition of all of the assets of the private company and the negotiation of a definitive agreement with the private company. Forward-looking statements are necessarily based upon a number of estimates and assumptions that, while considered reasonable, are subject to known and unknown risks, uncertainties, and other factors which may cause the actual results and future events to differ materially from those expressed or implied by such forward-looking statements. Such factors include, but are not limited to general business, economic, competitive, political and social uncertainties; and delay or failure to receive board, shareholder or regulatory approvals. Readers should not place undue reliance on forward-looking statements. The Corporation disclaims any intention or obligation to update or revise any forward-looking statements, whether as a result of new information, future events or otherwise, except as required by law.
FOR FURTHER INFORMATION, PLEASE CONTACT:
Chief Executive Officer
Phone: (214) 704-7942
SOURCE CanaFarma Hemp Products Corp.