Canbiola and Shi Farms Execute Letter of Intent to Form Joint Venture for Hemp Cultivation & Processing

Plans to Open a NY Depot for Hemp Cultivation

HICKSVILLE, NY, June 12, 2019 (GLOBE NEWSWIRE) -- via NEWMEDIAWIRE -- Canbiola, Inc. (OTCQB: CANB) (“Canbiola” or the “Company”), a developer, manufacturer, and seller of a variety of Cannabidiol (Hemp) based products such as oils, creams, moisturizers, chews, isolate, gel caps, and concentrate, announced today that has entered into a non-binding Letter of Intent (the “LOI”) with Shi Farms, Inc. (“Shi Farms”), a licensed Hemp Cultivation Operation under the Colorado Department of Agriculture, operating a 300-acre farm and 40,000 square feet of research greenhouses to grow, cultivate, accumulate and process hemp in New York State under a license from Shi Farms. 

For more information about Shi Farms, please visit: https://www.shifarms.com.

Pursuant to the LOI, Canbiola and Shi Farms plan to create a joint venture to develop a “depot model” for hemp processing in New York (“NY Depot”). Canbiola would manage and direct the NY Depot, where fully grown hemp harvested by third-party cultivators would be purchased and stored by the NY Depot. The raw material (biomass) would be aggregated and then shipped to Shi Farms’ facility in Pueblo, Colorado, where it would be processed by the Shi Farms’ other joint-venture partner, Mile High Labs.

Canbiola Chief Executive Officer Marco Alfonsi commented, “This proposed joint venture is very exciting for Canbiola and its shareholders, as it would vertically integrate our positioning and capabilities in the now federally legal hemp market. Shi Farms, a trusted and top-rated CBD wholesaler, will provide technical expertise, availability of seeds and clones, and a cultivation license for the state of New York which Shi presently owns, which license will be used for multiple cultivation locations for the NY Depot. We believe this is a robust growth opportunity for Canbiola, and with Shi Farms as our partner, it would give us the scale and flexibility to increase our revenue in a profitable manner. We look forward to working with Shi Farms and launching this joint venture partnership by the end of July.”

The LOI is non-binding and its terms are subject to the parties entering a binding definitive agreement memorializing the terms of the agreement. The parties expect to enter into the definitive agreements within thirty (30) days from the date of the LOI.

About Shi Farms

Shi Farms is a licensed Hemp Cultivation Operation under the Colorado Department of Agriculture, proudly located in Pueblo, Colorado. Its dedicated team operates its flagship 300-acre farm and 40,000 square feet of research greenhouses.  Scaling quickly from its pilot harvest in 2017, it planted and harvested 100 acres in 2018. With cooperative land farmed in excess of 200 acres, Shi Farms continues to scale to meet the needs of skyrocketing manufacturing and retail demand. Shi is attempting to find the sweet spot between the craft cultivation needs of High-CBD Hemp and commercial agriculture type scale necessary to produce large quantities of CBD ingredients. Shi Farms wants to be a steward of the Hemp Industry for a long time, and educating and assisting farmers is a good first step. In 2018, Shi Farms launched its first out-of-state Co-Op in New York. With a successful pilot under its belt, Shi Farms plans to continue scaling acreage on the east coast.

For more information about Shi Farms, please visit: https://www.shifarms.com.

About Canbiola, Inc.

Canbiola, Inc. (OTCQB: CANB) is a developer, manufacturer, and seller of a variety of Cannabidiol (Hemp) based products such as oils, creams, moisturizers, chews, isolate gel caps and concentrates. Canbiola has developed its own line of proprietary products as well as seeking synergistic value through acquisitions in the CBD and the medical cannabis industry. Cannabis is currently federally illegal and has legalized for medical purposes in some form in a limited number of states, but hemp was legalized under the 2018 Farm Bill.  Hemp CBD, like that in the Company’s products, is the non-psychoactive component (No THC) used for potential relief of pain, inflammation, and wellness programs.  For more information about Canbiola, Inc., please visit https://canbiola.com.