CanaFarma Hemp Products Corp. Provides Update on Management Cease Trade Order

VANCOUVER, BC / ACCESSWIRE / January 7, 2021 / CanaFarma Hemp Products Corp. (CSE:CNFA) (the "Company") is providing this biweekly default status report in accordance with National Policy 12-203 - Management Cease Trade Orders ("NP 12-203").

Further to its press releases dated October 19, 2020, October 29, 2020, November 12, 2020, November 26, 2020, December 10, 2020 and December 24, 2020, the Company has not yet filed its audited annual financial statements for the year ended June 30, 2020, the related management's discussion and analysis and CEO and CFO certifications (the "Annual Filings"), which were required to be filed on October 28, 2020. The British Columbia Securities Commission (the "BCSC") accepted the Company's request for, and the BCSC granted, a management cease trade order (the "MCTO") against the Company's chief executive officer and acting chief financial officer on October 29, 2020 in respect of the Annual Filings. The MCTO initially extended the filing deadline for the Annual Filings to December 28, 2020; however, as a result of continued complications caused by COVID-19, the Company announced on December 24, 2020 that the BCSC accepted the Company's request for, and the BCSC granted, an extension to the filing deadline for the Annual Filings to January 8, 2021 (the "MCTO Deadline").

Further to the Company's press releases dated November 12, 2020, November 26, 2020, December 10, 2020 and December 24, 2020, the Company has not yet filed its unaudited interim financial statements for the three months ended September 30, 2020 and the related management's discussion and analysis and officer certifications (the "Q1 Filings") by the deadline set forth in National Instrument 51-102 - Continuous Disclosure Obligations.

The Company believes that it will not be in a position to file the Annual Filings and the Q1 Filings within the MCTO Deadline and as a result, the Company anticipates that the BCSC will revoke the MCTO and issue a general "failure to file" cease trade order (the "CTO") once the MCTO Deadline has lapsed. The Company expects to file the Annual Filings and the Q1 Filings on or before January 15, 2021. If issued, it is anticipated that the CTO will remain in place until such time as the Company files the Annual Filings and Q1 Filings and a full revocation of the CTO has taken effect.

Pursuant to the requirements of section 10 of National Policy 12-203 (the "Alternative Information Guidelines"), the Company reports the following:

1. there have been no material changes to the information contained in the press release announcing the application for the MCTO on October 19, 2020 that have not been disclosed by the Company through press releases filed on SEDAR;
2. there has not been any failure by the Company in fulfilling its stated intentions with respect to satisfying the provisions of the Alternative Information Guidelines;
3. there has not been, nor is there anticipated to be, any specified default subsequent to the failure of the Company to file the Annual Filings and the Q1 Filings; and
4. there is no other material information about the affairs of the Company that has not been generally disclosed.

The Company confirms that it intends to satisfy the provisions of the Alternative Information Guidelines for so long as it remains in default of the filing requirements set out herein.

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.

For further information, please contact:

CanaFarma Hemp Products Corp.
David Lonsdale
Chief Executive Officer
Tel: + (214) 704-7942
Email: david@canafarmacorp.com

Forward Looking Statement

This news release contains statements and information that, to the extent that they are not historical fact, may constitute "forward-looking information" within the meaning of applicable securities legislation. Forward-looking information may include financial and other projections, as well as statements regarding future plans, objectives or economic performance, or the assumption underlying any of the foregoing. In some cases, forward-looking statements can be identified by terms such as "may", "would", "could", "will", "likely", "except", "anticipate", "believe", "intend", "plan", "forecast", "project", "estimate", "outlook", or the negative thereof or other similar expressions concerning matters that are not historical facts. Examples of such statements include, but are not limited to, statements with respect to the Annual Filings and Q1 Filings, and the Company's intention to satisfy the provisions of the Alternative Information Guidelines for so long as it remains in default of the filing requirements set out herein, the revocation of the MCTO, the issuance of a CTO and the listing and/or trading of its common shares. Forward-looking information is based on the assumptions, estimates, analysis and opinions of management made in light of its experience and its perception of trends, current conditions and expected developments, as well as other factors that management believes to be relevant and reasonable in the circumstances at the date that such statements are made, but which may prove to be incorrect.

Forward-looking information involves known and unknown risks, uncertainties and other factors that may cause the actual results, performance or achievements of the Company to differ materially from any future results, performance or achievements expressed or implied by the forward-looking information, including, without limitation,the Company may not complete its audit and file the Annual Filings and/or the Q1 Filings as currently anticipated, or at all; the Company will be subject to a CTO in the event that the Annual Filings and/or Q1 Filings are not completed and filed; and other related risks as set out in the Company's public documents filed on SEDAR. Accordingly, readers should not place undue reliance on any such forward-looking information. Further, any forward-looking information speaks only as of the date on which such statement is made. New factors emerge from time to time, and it is not possible for the Company's management to predict all of such factors and to assess in advance the impact of each such factor on the Company's business or the extent to which any factor, or combination of factors, may cause actual results to differ materially from those contained in any forward-looking information. The Company does not undertake any obligation to update any forward-looking information to reflect information or events after the date on which it is made or to reflect the occurrence of unanticipated events, except as required by law, including securities laws.

The CSE does not accept responsibility for the adequacy or accuracy of this release.

SOURCE: CanaFarma Hemp Products Corp.