CanaFarma Hemp Products Corp (CSE:CNFA, FRA:4K9). has announced an 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.
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CanaFarma said the WCG Team brings major credibility in the fiercely competitive California Cannabis Market. WCG symbolizes cannabis culture from a "grassroots" perspective as it has earned its reputation by providing exotic and handcrafted cannabis strains based on WCG's proprietary genetics.
In a statement, Vitaly Fargesen, SVP of Strategy for CanaFarma said: "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 superstars. 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 commented: "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".
WCG is one of the leading genetics companies in the cannabis industry. Its world-class, proprietary and premium cannabis brands have taken the industry by storm with their award-winning strains.
CanaFarma Hemp 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.
Contact the author at jon.hopkins@proactiveinvestors.com