VANCOUVER, BC / ACCESSWIRE / June 29, 2021 / CanaFarma Hemp Products Corp. (CSE:CNFA) (the "Company" or "CanaFarma") announces that it has signed a memorandum of understanding to acquire Vertical Wellness™ Inc. ("Vertical Wellness" or "VWEL"), a leader in the branded health and wellness space.
The Vertical Wellness management team, including CEO J. Smoke Wallin, will run the combined business, which, subject to applicable approvals, intends to keep the Vertical Wellness name. The combined company is anticipated to have a market capitalization of approximately $50 million.
CanaFarma went public in March 2020 just as the COVID-19 pandemic hit. The Company had a successful listing on the Canadian Securities Exchange, trading up to approximately $1.50 per share with a market capitalization of more than $200 million.
"This is a platform for Vertical Wellness to fulfill its vision. To launch a portfolio of brands along a vast array of categories and segments requires resources, and the CanaFarma deal enables us to attract those resources at a scale we need," says Vertical Wellness CEO J. Smoke Wallin. "It's a great combination because we can pursue our goal to become the preeminent brand company in the cannabinoid-derived health and wellness space."
Vitaly Fargesen, SVP Strategic Planning at CanaFarma said, "CanaFarma was founded with the express intention to be a large-scale brand company in the health and wellness space. Since early 2021, we have looked for the right opportunity to accelerate our mission through a business combination. Smoke and his team at Vertical Wellness are exactly what we were looking for and our investor base could not be more excited."
About Vertical Wellness™
Vertical Wellness is a leading vertically integrated consumer focused health and wellness brand company with innovative hemp cannabinoid solutions. Vertical Wellness' mission is to help people by bringing the most innovative and effective portfolio of cannabinoid, health and wellness brands to the market. Initial VWEL brands include AntiDos®, GoldQ®, Halogenix Beauty™, Hemp-Moji™, Just Live®, kathy ireland® Health & Wellness, Lap Dog™, Neutrate Fitness™, Organic Candy Factory®, Par5™, Taos™, Wingra Farms™ and USMCC™. Vertical Wellness has operations in California and Kentucky and cultivated over 1,800 acres of hemp on partner farms last season. Vertical Wellness has been one of the largest processors of hemp globally with over 22 million pounds owned, processed or contracted in 2020.
CanaFarma 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.
For media inquiries, please contact: Vitaly Fargesen [email protected]
This press release contains certain "forward-looking information" within the meaning of applicable Canadian securities legislation. Such forward-looking information and forward-looking statements are not representative of historical facts or information or current condition, but instead represent only the Company's beliefs regarding future events, plans or objectives, many of which, by their nature, are inherently uncertain and outside of the Company's control. Often, but not always, forward-looking statements and information can be identified by the use of words such as "plans", "expects" or "does not expect", "is expected", "estimates", "intends", "anticipates" or "does not anticipate", or "believes", or variations of such words and phrases or state that certain actions, events or results "may", "could", "would", "might" or "will" be taken, occur or be achieved. Forward-looking information involves known and unknown risks, uncertainties and other factors which may cause the actual results, performance or achievements of the Company, Vertical Wellness or their respective subsidiaries to be materially different from any future results, performance or achievements expressed or implied by the forward-looking information contained in this news release. Examples of such information include statements with respect to: the non-binding memorandum of understanding to acquire Vertical Wellness; the proposed name change for the Company; the proposed new CEO of the combined company; statements about the Company's partnership with Vertical Wellness; statements about the anticipated market capitalization of the combined company; and expectations for other economic, business and/or competitive factors.
Risks, uncertainties and other factors involved with forward-looking information could cause actual events, results, performance, prospects and opportunities to differ materially from those expressed or implied by such forward-looking information, including the ability of the parties to negotiate definitive documentation and receive, in a timely manner and on satisfactory terms, the necessary approvals; the ability of the parties to satisfy, in a timely manner, the other conditions to the completion of the acquisition; inherent uncertainty associated with projections; expectations regarding future growth and expansion of the operations of the businesses; regulatory and licensing risks; changes in general economic, business and political conditions, including changes in the financial and stock markets; risks related to infectious diseases, including the impacts of the COVID-19 pandemic; legal and regulatory risks inherent in the industry, including the global regulatory landscape and enforcement, political risks and risks relating to regulatory change; risks relating to anti-money laundering laws; compliance with extensive government regulation and the interpretation of various laws regulations and policies; public opinion and perception of the industry; and such other risks contained in the public filings of the Company filed with Canadian securities regulators and available under the Company's profile on SEDAR at www.sedar.com.
Although the Company believes that the assumptions and factors used in preparing, and the expectations contained in, the forward-looking information and statements are reasonable, undue reliance should not be placed on such information and statements, and no assurance or guarantee can be given that such forward-looking information will prove to be accurate, as actual results and future events could differ materially from those anticipated in such information. In particular, there is no guarantee that the acquisition of Vertical Wellness will proceed, or if it does proceed it will reflect the understanding of the parties as of the date of this release. The forward-looking information contained in this press release are made as of the date of this press release, and the Company does not undertake to update any forward-looking information that are contained or referenced herein, except in accordance with applicable securities laws.
SOURCE: CanaFarma Hemp Products Corp.