William Gildea, CEO & Chairman 617-834-9467 email@example.com
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Future Farm Technologies Inc. (CSE: FFT) (OTCQB: FFRMF) is pleased to provide an update to its current and prospective Shareholders regarding the Company’s activities over the past several months, and plans for development in the new year.
Future Farm has experienced a flurry of activity in the past several weeks and the market has responded positively to our continued efforts to create a diversified portfolio of cannabis investments for Future Farm's shareholders. We have successfully raised capital to support the various projects that we are developing throughout North America, including those in California, Maine, Florida, Rhode Island, Puerto Rico and beyond.
Future Farm shareholders have raised $1.4 Million through the voluntary conversion of both its $0.35 and $0.37 warrants from two offerings in 2017, and as most recently announced, the completion of a $4,000,000 private placement with Yorkville Advisors that enables the Company to close on the acquisition of a 10-acre operating greenhouse in Florida.
The Florida greenhouse business generated an estimated $2,800,000 USD in revenue and $400,000 USD in EBITDA for 2017. This acquisition represents a major milestone for the Company and positions it in the emerging Florida cannabis market, estimated by some to reach $1 billion in annual sales by 2020. The Company intends to continue operating the greenhouse as is while it applies for licensing as a cannabis cultivator with the State of Florida. The Company is also exploring the possibility of growing hemp on the remaining acreage of farmland to further strengthen its foothold in the hemp-based CBD market.
The Company has already secured more than 220-acres of farmland in Maine with an option for an additional 1,000-acres to grow and process hemp. Future Farm will bring its state-of-the-art, scalable alcohol extraction equipment and know-how to take full advantage of the fast-growing CBD oil market. The Company is also preparing to set up a hemp cloning operation, which will use vertical farming technology pioneered by the Company, to supply over 200,000 clones to the farm in 2018. The hemp clones will also be grown under the Company's Scorpion LED grow lights, which will save on electricity costs and further leverage its in-house technology.
Future Farm’s subsidiary, FFM Consulting Services, LLC, continues to make and sell cannabis oil out of its California oil extraction facility and is currently in discussions with large distributors whom are requesting pricing on 2,500-kilos of cannabis oil per year. The extraction facility team is using a unique process of running organic grape seed oil in its alcohol extraction equipment, which is capable of large-scale production.
“We are pleased with our progress in California and are excited to be a part of the state’s new recreational cannabis market,” says Bill Gildea, Future Farm’s CEO. “We look forward to the opportunities that California’s recreational market will open up to us in 2018 and beyond.”
California’s recreational cannabis market is forecast to reach over $7 billion in the next few years.
Another exciting opportunity is the anticipated closing of a 15,000-sq ft building in Providence, Rhode Island, which is scheduled for January 15, 2018. The building is located in an M-1 zone, meaning it is legally zoned for cannabis cultivation. The Company intends to lease the building to a local, Rhode Island entity that, once licensed by Rhode Island’s Department of Business Regulations, will use the property to cultivate wholesale medical marijuana in order to supply Rhode Island’s state-sanctioned dispensaries.
Future Farm is in the process of acquiring a controlling interest in five dispensaries in Puerto Rico via the formation of a joint venture with TCG Investments, LLC, owners of the Clinica Verde brand of medical cannabis dispensaries. Future Farm will purchase five pre-qualifications for medical dispensary licenses from Clinica Verde ("Licenses"). Subsequently, the Licenses will be contributed into a joint venture company that will operate under the Clinica Verde brand. Ownership in the dispensaries provides the potential of consistent cash flow while contributing to the expansion of the medical cannabis industry, which is a key driver for the future economic development of Puerto Rico.
Furthering its investment in the cannabis movement, Future Farm has entered into a 50/50 Joint Venture with Rahan Meristem to breed and propagate elite clones of cannabis. The partnership will develop, own and utilize Rahan's proven and proprietary technology to mass-produce elite clones of cannabis and hemp plants, which will be sold for medical purposes. Future Farm and Rahan intend to create varieties of cannabis with higher levels of THC and CBD, using Rahan's proprietary technology of non-GMO, in-vitro mutagenesis. Rahan shall be responsible for providing the know-how and technology, as well as management and operation of the Project. Future Farm shall be responsible for providing financing and an indoor, air-conditioned laboratory building space located in the United States or in Canada.
The Company announced its intentions to uplist from OTCQB to OTCQX last May, and has now begun the application process. To qualify for uplisting onto OTCQX International, companies must be listed on a Qualified Foreign Exchange, meet stringent financial and disclosure standards, and be sponsored by a professional third-party advisor. Uplisting to OTCQX has been part of the Company’s corporate strategy for some time, as it will provide wider visibility amongst the investment community and therefore strengthen stockholder value.
Future Farm continues to collaborate with CBO Financial Inc. and Volunteers of America on the development of produce farms in Baltimore, MD and Mobile, AL. The projects will be designed, financed and constructed in tandem. By bundling the projects together, the parties expect to save on financing fees related to New Market Tax Credits, facility design and engineering, and equipment expenses, including HVAC and LED lighting.
The primary objectives of all three locations (two in MD and one in AL) remain the same — establish economical and environmentally friendly vertical farms; provide job training opportunities (specifically to the VOA’s reentry program for ex-offenders in Baltimore, MD and to the mentally disadvantaged/formerly homeless community in Mobile, AL) as well as to the local communities of both; provide therapeutic programs, which will be expanded to the disabled population; support entrepreneurship development; and establish a model for replication at other reentry and social services facilities.
Future Farm’s LED Canada division continues to make significant progress. The LED Canada Showroom build out is complete and fully operational allowing for cost savings from a vertically integrated warehouse and showroom. Demand is increasing for LED Canada's award-winning Scorpion grow light as more licensed growers complete testing. A licensed producer in the USA was able to secure a rebate from its public power supplier for its use of LED Canada Scorpion grow lights, paving the way for savings and large LED purchase orders. Peking University has been using LED Canada grow lights and has shown that they produce the highest yields versus other grow lights tested.
LED Canada is also in the final stages of providing a quote on its LEDs for the previously announced Mobile, AL farm and another farm in development in Massachusetts. Each vertical farm would require 9,000 8-foot LED lamps, which would represent a multi-million-dollar purchase order for each project.
Future Farm continues to develop Hamptons Reserve as its in-house brand of premium edibles.
Finally, the Company is preparing to spin off its newly created augmented reality cannabis company in order to maximize shareholder value. Once spun off, Future Farm’s shareholders will own shares in a new company traded on the CSE, with a singular focus on bringing augmented reality to the cannabis industry.
Future Farm has had a very productive year as far as developing its portfolio of cannabis related businesses. We are positioned to hit the ground running to provide economic value to our shareholders in 2018.
For further information, contact William Gildea, Director, at 617.834.9467.
On behalf of the Board,
Future Farm Technologies Inc.
William Gildea, CEO & Chairman