CanaFarma Announces MOU to Acquire Vertical Wellness

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.