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CanaFarma CSE: CNFA Builds Powerful New Approach to Brand Expansion in $24B Hemp Space

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New Opportunity: CanaFarma Hemp Products Corp. (CSE: CNFA)

  • Attacking the $24 Billion USD (expected) hemp-sourced CBD market (by 2025)
  • Proprietary brand machine is driven by demand marketing engine
  • Proven by results — the company has seen $4M revenue in the first 6 months
  • Scalability — new verticals, the anticipated expansion
  • Fueled by expertise — 30+ years in direct to consumer sales in the health and wellness vertical

[/vc_column_text][/vc_column][/vc_row][vc_row][vc_column][vc_single_image image=”40865″ img_size=”full” alignment=”center”][/vc_column][/vc_row][vc_row][vc_column][vc_column_text]CBD, hemp, and cannabis stocks, as a sector, appear to have put in place a long-term bottom after a two-year bear market that capitulated its final load of weak-handed bag-holders in March, when the rest of the market crashed in response to the initial pandemic outbreak of the COVID-19 global health crisis.

As the new bull stretches its legs, investors are wise to drum up exposure to space with a diversified footprint.

One key name in the group that deserves some attention is CanaFarma Hemp Products Corp. (CSE: CNFA), a full-service company operating in the hemp industry offering a full range of hemp-related products and services to the consumer wellness market.

CanaFarma’s flagship brand is “Yooforic” – a line of hemp-based CBD-infused products for sale, meeting the highest standards for performance and purity, including gums, tinctures, and creams.

Even more importantly, the company’s model is driven by a unique marketing strategy that appears to be growing in terms of traction. Trailing sales and growth are quite strong, and the CBD segment is increasingly attractive.

We would also note that the hemp-sourced CBD market is growing at an 18.4% Compound Annual Growth Rate (2018-2022), which means it is now outpacing medical and recreational marijuana. This makes sense given that CBD has a much larger total addressable market than does marijuana given that it is not an intoxicant and has the potential to become a mainstream household industry.[/vc_column_text][/vc_column][/vc_row][vc_row][vc_column][vc_single_image image=”40869″ img_size=”full” alignment=”center”][/vc_column][/vc_row][vc_row][vc_column][vc_column_text]

Who is CSE: CNFA

CanaFarma Hemp Products Corp. (CSE: CNFA) 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.

CanaFarma is building a fully integrated, multi-faceted hemp products brand company. From plant to finished goods, CanaFarma creates high-grade hemp-based formulations supported by science and innovation. Designed to meet consumer demand in this rapidly growing market, CanaFarma’s proprietary brand machine and its direct-to-consumer demand marketing engine poise this company to be an industry leader in the branded hemp product space.

The company independently grows, produces, promotes, sells, and ships its own products.[/vc_column_text][/vc_column][/vc_row][vc_row][vc_column][vc_column_text]

Recent Catalysts

The company just announced that, in September, it will begin manufacturing in-house its patent-pending cannabinoid-infused center-filled chewing gum. CanaFarma has filed provisional patents in both the US and Europe for this new innovation in confectionary CBD delivery, the center-filled chewing gum.

According to the release, the Company has been working with its research and development partner, APet Holding BV, testing the product, and refining the manufacturing process. With the testing program expected to be complete in August, CanaFarma is scheduled to begin manufacturing the center-filled chewing gum in September. The two patents pending regarding the invention relate to chewing gum or lozenge composition that can be liquid filled containing high-quality hemp oil, naturally enriched with many phytocannabinoids, including CBD. The invention will serve as an extension to the widely popular YOOFORIC, hard-shelled chewing gum, currently marketed and sold by CanaFarma. The Hemp/CBD extract in the gum (or lozenge and/or in the liquid filling thereof) is in an amount of up to 100 mg per unit dose.

The invention is designed to have a high initial release rate of the hemp sourced CBD by releasing the oil from the center with the first bite. Due to the design, the long-lasting chewability of the gum encourages an extended-release. The absorption rate of the currently marketed YOOFORIC™ formula has been tested to be at an industry-leading 84% and because the actives are absorbed through the buccal cavities within the mouth, the center-filled version is expecting to test at even stronger bioavailability levels. The combination of the two technologies makes this new center-filled gum an advanced and fun way to enjoy the benefits of full-spectrum hemp oil and CBD.

David Lonsdale, CEO of CanaFarma said, “We are very pleased to be delivering this patent-pending, cannabinoid-infused, center-filled chewing gum extension to our YOOFORIC™ range of products, and expect it to be very well received by our customers.”

Just before that, the company announced that it conducted an analysis of its product sales from its first six months of sales activity (from June to November 2019). Sales of CanaFarma’s first two products, YOOFORIC™ chewing gum and YOOFORIC™ tincture, commenced in June 2019. CanaFarma has completed this review of its first six months of revenues in order to assess its marketing direct response model.

In the release, the company revealed some very interesting data points: the re-order rate of products by customers in its YOOFORIC™ brand was 68%; the daily order count was approximately 300 orders per day, which was in line with budget expectations; the cost to acquire customers or Cost Per Acquisition (“CPA”) was 10% lower than had been budgeted; the Company’s re-marketing efforts to customers achieved results which were 28% better than projections; and 65% of customers also chose to try a second product under the YOOFORIC™ brand, demonstrating a high degree of confidence in brand equity and credibility.

CEO Lonsdale said, “We are gratified by the response that our customers have shown to our marketing efforts. These results provide us a great deal of confidence in our marketing approach as we look to scale up our marketing and sales efforts in the future.”[/vc_column_text][/vc_column][/vc_row][vc_row][vc_column][vc_column_text]

Technical Analysis

CanaFarma Hemp Products Corp. (CSE: CNFA) shares just triggered an RSI oversold bull signal. That is significant because it corresponds with other key signals on the chart.

Specifically, the oversold bull signal from the oscillator comes in sync with multiple key support factors that form a confluence support zone just under the $1/share level, focused around the $0.90/share price point.

This is where we see the intersection of price range level support from its prior consolidation in step with the primary test of its current and driving upward-sloped trendline, which was established in mid-April and ratified in early May on a sharp hammer doji daily candle.[/vc_column_text][/vc_column][/vc_row][vc_row][vc_column][vc_single_image image=”40871″ img_size=”full” alignment=”center”][/vc_column][/vc_row][vc_row][vc_column][vc_column_text]

About CSE: CNFA

CanaFarma Hemp Products Corp. (CSE: CNFA) 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.

CanaFarma is building a fully integrated, multi-faceted hemp products brand company. From plant to finished good, CanaFarma creates high grade hemp-based formulations supported by science and innovation. Designed to meet consumer demand in this rapidly growing market, CanaFarma’s proprietary brand machine and its direct-to-consumer demand marketing engine poise this company to be an industry leader in the branded hemp product space.

The company independently grows, produces, promotes, sells, and ships its own products.[/vc_column_text][/vc_column][/vc_row][vc_row][vc_column][vc_column_text]

Key Points:

  • CNFA is attacking a $24 billion USD (expected) hemp-sourced CBD market by 2025
  • CNFA has a proprietary brand machine driven by demand marketing engine and fueled by the company’s expertise
  • CNFA claims that its methods have been “proven by results with $4M revenue in the first 6 months”
  • CNFA has scalability, with new verticals and expanded farming set to come online
  • CNFA has strong expertise and a strong team, with 30+ years in direct-to-consumer sales in the health and wellness space

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Conclusion

The CBD story is still in its early chapters and analysts and experts agree that the lion’s share of investment gains from the CBD “mainstreaming” process has yet to be collected by market participants.

CanaFarma Hemp Products Corp. (CSE: CNFA) represents an interesting new model with a more aggressive focus on marketing and brand expansion. Given the growth that appears to lie ahead in the space, and the company’s successful application of its model thus far, CSE: CNFA  shares appear promising, especially given the technical posture that has come together on the charts in recent action.[/vc_column_text][/vc_column][/vc_row][vc_row][vc_column][vc_single_image image=”40865″ img_size=”medium”][/vc_column][/vc_row][vc_row][vc_column][vc_column_text]Symbol:  CSE: CNFA
Company:  CanaFarma Hemp Products Corp.
Quote:  https://finance.yahoo.com/quote/CNFA.CN
Latest News:  https://finance.yahoo.com/quote/CNFA.CN/press-releases  
Company Website:  https://www.canafarmacorp.com/Investors[/vc_column_text][/vc_column][/vc_row][vc_row][vc_column][vc_column_text]This report is for information purposes only and is neither a solicitation or recommendation to buy nor an offer to sell securities. MMJ Reporter is not-a-registered-investment-advisor. MMJ Reporter is not a broker-dealer. Information, opinions, and analysis contained herein are based on sources believed to be reliable, but no representation, expressed or implied, is made as to its accuracy, completeness or correctness. The opinions contained herein reflect our current judgment and are subject to change without notice. MMJ Reporter accepts no liability for any losses arising from an investor’s reliance on the use of this material. MMJ Reporter has been compensated 20k for coverage of this stock by Think Ink Marketing this month. MMJ Reporter and its affiliates or officers currently hold no shares of this stock. MMJ Reporter and its affiliates or officers will purchase and sell shares of common stock of these stocks, in the open market at any time without notice. MMJ Reporter will not update its purchases and sales of these stocks in any future postings on MMJ Reporter’s websites. Certain information included herein is forward-looking within the context of the Private Securities Litigation Reform Act of 1995, including, but not limited to, statements concerning manufacturing, marketing, growth, and expansion. The words “may”, “would,” “will,” “expect,” “estimate,” “anticipate,” “believe,” “intend,” ” project,” and similar expressions and variations thereof are intended to identify forward-looking statements. Such forward-looking information involves important risks and uncertainties that could affect actual results and cause them to differ materially from expectations expressed herein. *MMJ Reporter does not set price targets on securities. Never invest into a stock discussed on this web site or in this email alert unless you can afford to lose your entire investment.[/vc_column_text][/vc_column][/vc_row]

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