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Corporate Updates for Year 2020 Operation

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/THIS NEWS RELEASE IS NOT FOR DISSEMINATION IN THE UNITED STATES OF AMERICA/

VANCOUVER, BC, Feb. 5, 2021 /CNW/ - HempNova Lifetech Corporation, (the "Company" or "HempNova"), is pleased to provide corporate updates for the 2020 calendar year. All amounts are in Canadian Dollars, unless otherwise noted.

HIGHLIGHTS

  • Closed equity financing of $6.2 million in May 2020;

  • Acquired Seven Oaks Hemp Center ("7Oaks") in May 2020;

  • Completed Phase I construction and infrastructure upgrades at 7Oaks;

  • Obtained $4.2 million convertible debentures financing in October 2020;

  • Successful 2020 hemp cultivation and drying season at 7Oaks;

  • Obtained cGMP certificate for Oscar Hemp Center ("Oscar") in October 2020;

  • Completed product development for CBD isolate and full spectrum distillate;

  • Established e-commerce platform to market and streamlined direct sales of premium smokable flowers and other CBD products; and

  • Changed the Company's financial year end to June 30 to better reflect operation seasonality.

SEVEN OAKS HEMP CENTER: Seeds to Smokable Flowers and Crude Oil Extraction

Acquisition

After a successful drying season in Eugene in 2019, the Company strategically expanded its business to Southern Oregon by acquiring 7Oaks for US$2.03 million in May 2020. 7Oaks is a 45 acres EFU farm with two new warehouses totaling 15,600 square feet, one 8,200 square foot greenhouse, an irrigation system, water rights, natural gas, and three-phase power supply. It is located in the Rouge Valley of Southern Oregon, near major hemp-growing areas, easily accessible from Highway 99 and Highway 5.

Over the next couple of years, the Company will expand 7Oaks into a major regional hemp one-stop service center for Southern Oregon growers, including drying and processing facilities for smokable flowers, drying shops for biomass, and extraction facilities for hemp crude oil production.

Phase I Construction

During Phase I construction in 2020, the Company designed and constructed a 54,000 square foot state-of-the-art multipurpose greenhouse with an automatic climate control system. A new 18,000 square foot steel-structured warehouse was also built for flower drying, curing, and storage.

Additionally, the Company substantially upgraded 7Oaks infrastructures, increasing natural gas supply from 8 million to 50 million BTU, expanding power supply from 800 amp to 2,800 amp, building underground gas-power-water-sewage systems for the hemp center, and opening a new southern entrance with connecting road access.

Cultivation

In terms of farming, the Company cultivated 65,000 hemp plants over 33 acres. Growing hemp on our own has enabled us to understand farmers' needs and serve our customers better. During this productive growing season, we harvested over 36,000 pounds of untrimmed dried smokable flowers of premium quality. We also extracted an impressive volume of high-quality terpenes from six different hemp strains. Our two flower harvesting tractors, which were designed and custom-made by our engineering team, have dramatically increased the efficiency of an otherwise time-consuming flower harvesting process.

Flower Drying and Processing

We custom-designed a 17-level movable rack and plastic tray system for premium flower drying inside our specially-engineered greenhouse. We utilized large industrial dehumidifiers, heaters, ventilation fans, and an automatic climate control system to provide the best flower drying environment. Our state-of-the-art greenhouse has the capacity to dry 300,000 pounds of fresh hemp flowers per week.

During the 2020 season, we produced over 120,000 pounds of dried hemp flowers for ourselves and for our customers. The quality of our dried flowers has been a phenomenal success; we far exceeded our customers' expectations. 7Oaks has become one of the largest premium flower-drying facilities in Southern Oregon.

OSCAR HEMP CENTER: Crude Oil to Finished Products

In 2020, we also made progress at our Oscar Hemp Center. The Company built a 10,000 square foot refinery to convert hemp crude oil into distillates, isolate, and other hemp-derived products. We obtained a cGMP certificate for the facility in October 2020, a key qualification for safety and quality control and being able to market our products to large customers.

The Company also completed product development on CBD isolate and full spectrum distillate. Currently, we are capable of producing as much as 200 kilograms of high-purity CBD isolate and 100 liters of full spectrum distillate per week. We have been producing high-quality CBD distillate and isolate after our cGMP certification.

SUMMARY

We had a great year in 2020 despite the COVID-19 pandemic. It is our honor to congratulate our dedicated team for their hard work and achievements. Looking beyond, we strive to serve hemp growers in Southern Oregon by leveraging our expertise and innovative mindset to establish modern large-scale hemp facilities. With the completion of 7Oaks and the Oscar Hemp Center, HempNova has quickly emerged as a leading one-stop service provider for hemp growers and is well positioned for future growth in this fast-growing industry.

ON BEHALF OF THE BOARD
Maria Tang, President

CAUTIONARY NOTE REGARDING FORWARD-LOOKING INFORMATION AND CAUTIONARY NOTE TO US INVESTORS

Certain of the statements and information in this news release constitute "forward-looking information" within the meaning of applicable Canadian provincial securities laws. Any statements or information that express or involve discussions with respect to predictions, expectations, beliefs, plans, projections, objectives, assumptions or future events or performance (often, but not always, using words or phrases such as "expects", "is expected", "anticipates", "believes", "plans", "projects", "estimates", "assumes", "intends", "strategies", "targets", "goals", "forecasts", "objectives", "budgets", "schedules", "potential" or variations thereof or stating that certain actions, events or results "may", "could", "would", "might" or "will" be taken, occur or be achieved, or the negative of any of these terms and similar expressions) are not statements of historical fact and may be forward-looking statements or information.

Forward-looking statements or information are subject to a variety of known and unknown risks, uncertainties and other factors that could cause actual events or results to differ from those reflected in the forward-looking statements or information, including, without limitation, risks relating to: fluctuating equity prices, bond prices, commodity prices, foreign exchange risks, interest rate risk, foreign investment risk; loss of key personnel; conflicts of interest; dependence on management and others.

This list is not exhaustive of the factors that may affect any of the Company's forward-looking statements or information. Forward-looking statements or information are statements about the future and are inherently uncertain, and actual achievements of the Company or other future events or conditions may differ materially from those reflected in the forward-looking statements or information due to a variety of risks, uncertainties and other factors, including, without limitation, those referred to in the Company's various SEDAR filings under the heading "Risk Factors". Although the Company has attempted to identify important factors that could cause actual results to differ materially, there may be other factors that cause results not to be as anticipated, estimated, described or intended. Accordingly, readers should not place undue reliance on forward- looking statements or information.

The Company's forward-looking statements or information are based on the assumptions, beliefs, expectations and opinions of management as of the date of this news release, and other than as required by applicable securities laws, the Company does not assume any obligation to update forward-looking statements or information if circumstances or management's assumptions, beliefs, expectations or opinions should change, or changes in any other events affecting such statements or information. For the reasons set forth above, investors should not place undue reliance on forward-looking statements or information.

SOURCE HempNova Lifetech Corporation

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View original content: http://www.newswire.ca/en/releases/archive/February2021/05/c8582.html