CanaFarma Agrees to Strategic Investment In Leading Cannabis Formulator Winners Circle Genetics

NOT FOR DISSEMINATION IN THE UNITED STATES OR THROUGH U.S. NEWSWIRES

VANCOUVER, BC / ACCESSWIRE / August 10, 2021 /CanaFarma Hemp Products Corp. (CSE:CNFA) (the "Company" or "CanaFarma") a leader in the branded health and wellness space, announces its agreement to complete a strategic investment in one of the industry's leading cannabis genetics companies, Winners Circle Genetics, Inc. ("WCG").

The strategic investment by CanaFarma will provide WCG with a working capital facility needed to meet its rapidly growing demand for exotic and proprietary cannabis strains. WCG's world class, premium cannabis brands have taken the industry by storm with award winning strains Peanut Butter & Jelly, 1942, Birkinz, and others being currently formulated.

The WCG Team brings major credibility in the fiercely competitive California Cannabis Market. WCG symbolizes cannabis culture from a "grass roots" perspective as it has earned its reputation by providing exotic and handcrafted cannabis strains based on WCG's proprietary genetics.

Vitaly Fargesen, SVP of Strategy for CanaFarma added, "We analyzed the US Cannabis Market extensively before making our entry into this space. This is the second in a number of strategic initiatives that we are planning as we continue to transform the Company into a full-service branded health and wellness business addressing all aspects of the cannabis plant."

CanaFarma will acquire 31.0% of the issued and outstanding common stock of WCG on a fully- diluted basis in exchange for two million common shares of CanaFarma, along with a working capital facility. All of the foregoing shares will be subject to a four-month-and-one-day hold period in accordance with applicable securities laws.

With strong ties to the music industry through partners Abou Thiam and Chris "Milano" Allison, WCG has cultivated relationships with some of the entertainment industry's biggest super stars. The Birkinz Strain, being the most recent favorite with leading rapper, Quavo, of the rap group Migos. Birkinz was an instant hit throughout the California Market and sold out immediately.

WCG founding member, Hassim Robinson added, "We have distinguished ourselves with exotic strains and premium grown cannabis, managed by our Head of Cultivation, David Pitts. This is just the beginning of a lucrative future for the WCG and CanaFarma partnership. Partnering with CanaFarma gives WCG the ability to expand on a national basis".

About Winners Circle Genetics, Inc.

Winner's Circle Genetics is one of the leading genetics companies in the cannabis industry. WCG's world class, proprietary and premium cannabis brands have taken the industry by storm with their award winning strains.

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 high-quality hemp, providing hemp-processing services, and offering hemp-based products to consumers utilizing a well-established direct-to-consumer marketing approach.

About Vertical Wellness™

Vertical Wellness is a leading vertically integrated consumer focused on health and wellness brands 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. Vertical Wellness™ partnered with Kathy Ireland® Worldwide (kiWW®) to produce CBD products, with the first brand release of kathy ireland® HEALTH & WELLNESS CBD Solutions™ coming in Fall 2021. Kathy Ireland is Chair, CEO, and Chief Designer of kiWW®, is named among the top 10 women's health advocates in America according to UCLA and was recently listed as the 15th most powerful brand in the world by License Global Magazine. Other Vertical Wellness brands include AntiDos®, GoldQ®, Halogenix Beauty™, Hemp-Moji™, Just Live®, Lap Dog™, Neutrate Fitness™, Organic Candy Factory®, Par5™, Taos®, Wingra Farms™ and USMCC™. Vertical Wellness has operations in California and Kentucky.

For media inquiries, please contact:

Vitaly Fargesen
vitaly@canafarmacorp.com
(718) 757-4145

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 the issuance of shares as consideration, potential future spending commitments, completion of the investment in WGC, future supply and demand of WGC products, the completion of all customary closing conditions, including the customary filings with the CSE. 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. Among the key factors that could cause actual results to differ materially from those projected in the forward-looking information are the following: financing risks; regulatory and licensing risks; changes in consumer demand and preferences; changes in general economic, business and political conditions, including changes in the financial markets; risks relating to regulatory change; compliance with extensive government regulation; public opinion; the impact of COVID-19; and the risk factors set out in the Company's public documents filed with Canadian securities regulators and available on the Company's profile on SEDAR at www.sedar.com. Should one or more of these risks or uncertainties materialize, or should assumptions underlying the forward-looking information prove incorrect, actual results may vary materially from those described herein as intended, planned, anticipated, believed, estimated or expected. 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.

SOURCE: CanaFarma Hemp Products Corp.