NOT FOR DISSEMINATION IN THE UNITED STATES OR THROUGH U.S. NEWSWIRES
VANCOUVER, BC / ACCESSWIRE / August 6, 2021 / CanaFarma Hemp Products Corp. (CSE:CNFA) (the "Company") is pleased to announce that it has closed the first tranche of its previously announced non-brokered private placement (the "Private Placement") with the issuance of 5,736,842 units (each, a "Unit") at an issue price of CAD$0.095 per Unit for aggregate proceeds of CAD$545,000. Each Unit consists of one common share in the capital of the Company (each, a "Common Share") and one-half of one Common Share purchase warrant (each whole warrant, a "Warrant"). Each whole Warrant is exercisable into one Common Share (a "Warrant Share") for a period of 36 months at an exercise price of CAD$0.125 per Warrant Share. In accordance with applicable securities laws, all of the Common Shares and Warrants issued under the first tranche closing are subject to a four-month-and-one-day hold period, which will expire on December 7, 2021.
As previously announced on July 27, 2021, the Company is offering up to CAD$5 million of Units. The Private Placement is expected to be completed in multiple tranches. The Company continues to collect subscription materials and funds and expects close one or more additional tranches prior to August 19, 2021.
The Company intends to use the proceeds from the Private Placement to provide a working capital loan to Vertical Wellness™ Inc., a company with which the Company recently entered into an MOU to acquire (see the Company's press release dated June 29, 2021 for further details); fund other potential acquisitions; and meet general working capital needs.
The securities to be issued pursuant to the Private Placement have not been and will not be registered under the U.S. Securities Act of 1933, as amended (the "1933 Act"), or under any state securities laws, and may not be offered or sold, directly or indirectly, or delivered within the United States absent registration or an applicable exemption from the registration requirements. This news release does not constitute an offer to sell or a solicitation to buy such securities in the United States.