November 20, 2018 – Vancouver, British Columbia – Future Farm Technologies Inc. (the “Company,” “Future Farm” or “FFT”) (CSE: FFT) (OTCQB: FFRMF) is pleased to provide an update regarding activities for the calendar year-to-date and plans for the remainder of 2018. The Company’s CEO, Bill Gildea, thanks current and prospective shareholders for their ongoing support.
Early 2018 was an active period for Future Farm. The Company closed new investments in Florida, Puerto Rico, Rhode Island and Maine, and the market responded positively to this portfolio expansion and diversification. Since that time, Future Farm has primarily focused on increasing shareholder value by integrating these acquisitions, improving operations, and taking advantage of synergies. The Company has successfully raised US$6.34 million of new capital from a fund of Yorkville Advisors over the course of the year to develop and expedite growth in its operations.
The summaries below provide a more in-depth update on the Company’s various projects in its four business segments over the year-to-date.
With cultivation projects underway in strategic markets in the U.S. and Canada, Future Farm is positioned to be a leading cultivator of cannabis, including hemp, and other types of produce. The Company’s Build-Own-Operate model, Controlled Environment Agriculture (“CEA”) practices, and adherence to the highest standards position FFT to be a leading producer of cannabis, hemp and CBD products.
Future Farm owns a fully operational, approximately 10-acre greenhouse business in Apopka, Florida known as White Sand Nursery (“White Sand”). White Sand currently grows ornamental plants that are sold in large retail stores throughout North America, but the intent is to cultivate cannabis in its greenhouses and outdoor farmland, once fully licensed.
White Sand hired Jose Sikaffy in August 2018 as Director of Cultivation in preparation for entering the Florida medical cannabis business. Before joining White Sand, Mr. Sikaffy was Cultivation Director of Remeny/Tredwell Nursery, a Florida licensed medical cannabis facility in Eustis. Mr. Sikaffy graduated from Valencia College in Orlando and holds a degree in plant science and agriculture technology.
Future Farm’s 80% subsidiary, Future Farm Maine, LLC, received three licenses for industrial hemp cultivation in the state: one each for farms in Amity and Hersey, and one for the Company’s hemp processing facility in Belfast. Future Farm Maine is expected to provide multiple revenue streams from the sale of harvested hemp biomass, CBD concentrate and isolate extracted from the biomass, and hemp seeds. The Company completed its harvest of 50 acres of hemp in Maine in October 2018 and announced that the harvested hemp easily passed state-mandated testing for acceptable limits of THC (<0.3% THC).
In January 2018, Future Farm purchased a 15,000-square foot building in Providence, Rhode Island to be used as a licensed medical marijuana cultivation facility. Once licensed, this property will be used to provide wholesale cannabis to Rhode Island’s state-sanctioned dispensaries. The building is located in an M-1 zone, which permits the cultivation of cannabis by right. Future Farm has a letter of intent to lease the building to an entity that holds a provisional license for the cultivation of wholesale medical marijuana. Renovation is underway to create 6,480-square feet of cultivation space, in addition to processing space and a commercial kitchen to prepare edible cannabis products. Creative Environment Corp. of Cranston, Rhode Island has been engaged to lead the construction effort in Providence.
PRODUCE FARMS: MARYLAND AND ALABAMA
Future Farm is pursuing opportunities to grow produce in Maryland and Alabama using CEA in collaboration with CBO Financial Inc. (“CBO”) and Volunteers of America (“VOA”). The primary objectives of both farms is to establish economical and environmentally friendly vertical farms, provide job training opportunities (specifically to the VOA’s reentry program for ex-offenders), provide therapeutic programs, support entrepreneurship development, and establish a model for replication at other reentry and social services facilities.
The Company, with the assistance of CBO Financial, is pursuing locations in Maryland and Alabama of approximately 25,000 square feet each. While it is not yet possible to predict the exact timing of these projects, Future Farm’s plan is still to first develop a prototype farm as a demonstration project for potential sources of financing, then to use this model to expand the Company’s CEA technology as well as the training and therapeutic programs developed by VOA into other markets throughout the United States.
PROCESSING, BREEDING AND GENETICS
Concentrates are used to make edibles, topical ointments, capsules and other packaged products that require professional extraction technology and facilities. The market for high-quality cannabis concentrates is increasingly strong. Future Farm has made the strategic decision to optimize operations by moving the extraction equipment it acquired for use in California to the Company’s hemp drying and curing facility in Maine. The equipment recently arrived in Maine in time to meet the farm’s post-harvest processing needs. The extraction operation will be set up once harvest and seed sorting are completed.
BREEDING AND GENETICS
2018 has been a pivotal year for Future Farm’s breeding and genetics operations. The Company intends to form a jointly owned limited liability company, “Future Farm Rahan,” with world-renowned global agro-biotechnology company Rahan Meristem Ltd. Future Farm Rahan will develop, own and utilize Rahan’s proven, patented and proprietary technology to mass-produce elite clones of cannabis and hemp and related technology. These clones are expected to have higher levels of THC and CBD that are focused on achieving specific, desired results in patients and recreational users. The new company intends to commercialize the intellectual property it develops by both selling clones and licensing technology.
VERTICALLY INTEGRATED DISPENSARIES: MASSACHUSETTS
The Company has loaned $1.325 million to BCWC, LLC (“BCWC”), the holder of a provisional medical license and two provisional adult use licenses in Massachusetts. Currently, the Company is in discussions with BCWC regarding the terms under which it would provide further financial support for BCWC and will provide updates as those discussions progress. In addition, Future Farm has recently begun discussions with other holders of provisional licenses in Massachusetts about acquiring interests in those businesses.
DISPENSARIES: PUERTO RICO
Future Farm is a 40% owner of and holds a 60% economic interest in FFPR, LLC (“FFPR”). FFPR will own and operate five dispensaries in Puerto Rico under the Clinica Verde brand, which is already established as a leading medical cannabis dispensary operator in Puerto Rico.
As of September 2018, about 34,000 patients were signed up for the Puerto Rico medical marijuana program according to Marijuana Business Daily. This almost triple the 12,000 registered patients accounted for in 2017.
FFPR is preparing to launch three of the five dispensaries early in the new year. The three dispensaries will be located in the well-known Condado area of San Juan, on busy University Avenue in the Rio Piedras neighborhood of San Juan and in the city of Ponce. Work is underway at both the Condado and University Avenue locations.
LED Canada continues to operate out of its showroom and integrated warehouse in Vancouver, British Columbia. The Company is conducting a technology and marketing review in order to increase sales via e-commerce channels.
Future Farm is utilizing and developing state-of-the-art technology in all aspects of its operations from cultivation to processing to the end-user experience. Also, as has been previously reported, the Company completed its spinout of NexTech AR Solutions Corp. in September.
In August 2018, the Company entered into a Secured Convertible Debenture from a fund of Yorkville Advisors Global, LP (“Yorkville”) in the Principal Amount of US$4,202,423, of which US$3,202,423 refinanced the remaining principal and accrued interest on the US$4,000,000 Convertible Debenture entered into with Yorkville in March 2018 and US$1,000,000 was paid in cash to Future Farm.
In September 2018, the Company announced an extension to its Conditional Lease Commitment with Veterans Capital Corp, a specialty finance company providing financial and leasing services (“Veterans Capital”). Veterans Capital agreed to extend to March 1, 2019 the period of time during which the Company can access its secured lease line of credit in an amount not to exceed US$500,000.00.
In November 2018, the Company entered into two Secured Convertible Debentures with Yorkville. One Debenture is in the Principal Amount of US$1,777,155, which refinanced the principal and accrued interest on the US$1,660,000 Convertible Debenture entered into with Yorkville in December 2017. The other Debenture is in the principal amount of US$1,340,00, which was paid to the Company in cash net of certain fees and expenses.
Proceeds from the private placements will be used to support the continued development of the Company’s various projects throughout North America.
Future Farm continues to forge ahead on a number of diversified activities in cannabis and agriculture. The Company is very pleased with the expansion of its portfolio over 2018 and the execution of its business divisions across North America.
The Company continues to raise capital and look for new opportunities in which to expedite growth. Future Farm thanks current and prospective shareholders for their interest and ongoing support.
For further information, contact Investor Relations at investor@FutureFarmTech.com.
On behalf of the Board,
Future Farm Technologies Inc.
William Gildea, CEO & Chairman
About Future Farm Technologies Inc.
Future Farm is a Canadian company with holdings throughout North America including California, Massachusetts, Florida, Maine, Puerto Rico and Newfoundland. The Company’s mission is to advance sustainable agriculture through production of wholesale and retail cannabis products, including hemp. As a leader in its field, Future Farm is committed to using only the highest quality processes and products. Towards this goal, the Company acquires or partners with licensed cannabis operators, and acquires or develops leading technologies in cannabis production, breeding, genetics, and Controlled Environment Agriculture (CEA). Future Farm’s scalable, indoor CEA systems utilize minimal land, water and energy resources. The Company holds an exclusive, worldwide license to use a patented vertical farming technology that, when compared to traditional plant production methods, generates yields up to 10 times greater per square foot of land.
Neither the Canadian Securities Exchange nor its Market Regulator (as that term is defined in the policies of the Canadian Securities Exchange) accepts responsibility for the adequacy or accuracy of this release. The Canadian Securities Exchange has not in any way passed upon the merits of the proposed transaction and has neither approved nor disapproved the contents of this press release.
This news release may include forward-looking statements that are subject to risks and uncertainties. All statements within, other than statements of historical fact, are to be considered forward looking. Although the Company believes the expectations expressed in such forward-looking statements are based on reasonable assumptions, such statements are not guarantees of future performance and actual results or developments may differ materially from those in forward-looking statements. There is no guarantee that the Company will complete the Arrangement, or if completed, will be listed on a stock exchange. There can be no assurances that such statements will prove accurate and, therefore, readers are advised to rely on their own evaluation of such uncertainties. We do not assume any obligation to update any forward-looking statements except as required under the applicable laws.