CanaFarma Announces CAD$5,000,000 Non‐Brokered Private Placement of Units

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

VANCOUVER, BC / ACCESSWIRE / July 12, 2021 / CanaFarma Hemp Products Corp. (CSE:CNFA) (the "Company") is pleased to announce that it intends to complete a non-brokered private placement (the "Private Placement") to raise approximately CAD$5 million through the issuance of approximately 32,051,282 units (the "Units") at an issue price of CAD$0.156 per Unit. Each Unit will consist 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 will be exercisable into one Common Share (a "Warrant Share") for a period of 36 months following the closing of the Private Placement at an exercise price of CAD$0.20 per Warrant Share.

All securities to be issued pursuant to the Private Placement will be subject to a four-month-and-one-day statutory hold period in accordance with applicable securities laws. Subject to the satisfaction of customary closing conditions, including completion of customary filings with the Canadian Securities Exchange (the "CSE"), the first tranche of the Private Placement is expected to close on or before 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.

About CanaFarma

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.