Future Farm Announces Closing Date to Acquire 10-Acre Operating Greenhouse in Florida and Closes on $4,000,000 Usd Private Placement
Vancouver, British Columbia, Dec. 27, 2017 (GLOBE NEWSWIRE) — Future Farm Technologies Inc. (the “Company” or “Future Farm”) (CSE: FFT) (OTCQB: FFRMF) is pleased to announce that it has set a closing date of January 4, 2018 on its previously announced 10-acre operating greenhouse acquisition, which generated an estimated $2,600,000 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 have $1 billion in annual sales by 2020.
The Company is also pleased to announce that it has secured a $4,000,000 USD investment, its largest investment to date, from Yorkville Advisors Global, LP (“Yorkville”). Proceeds from the private placement will be used to acquire the previously announced 10-acre operating greenhouse in Florida. The business and associated property have been approved at the county level for cultivation and processing of cannabis.
“Although the Florida acquisition has taken longer than anticipated, we see the Yorkville financing and the revenue-generating acquisition in Florida as major milestones for Future Farm and its shareholders since it puts us in one of the fastest growing cannabis and hemp markets in the country,” says William Gildea, Future Farm’s CEO and Chairman. “We expect that this acquisition will bring Future Farm $2,600,000 USD in revenue and $400,000 USD in EBITDA, which positions the Company for tremendous growth in 2018 and for years to come.”
The greenhouse is in a designated legal grow zone with close proximity to Orlando, which has a local population of almost 2.5 million and attracts over 62 million visitors annually, making it a prime location. Shareholders will be excited to know that the farm is much more than a “zoned for cannabis” piece of land, but also a fully operational greenhouse business already in full production. The greenhouse property, which has been family operated since 1959, currently grows ornamental plants sold in big-box stores throughout North America.
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.
Under the terms of the Yorkville financing, the Company has agreed to enter into two Secured Convertible Debentures, each bearing annual interest at 8% and repayable within 18-months, or convertible into Common Shares of the Company. Debenture No. 1 is in the Principal Amount of US$2,340,000, that amount and any accrued interest can be converted into Common Shares at a price of C$0.30 per share. Debenture No. 2 is in the Principal Amount of US$1,660,000, that amount and any accrued interest can be converted into Common Shares at a price of C$0.60 per share. In connection with the Debentures, the Company has also granted warrants to purchase 6,459,212 Common Shares at an average price of C$0.56 per share. The warrants expire on December 21, 2020.
As further part of this financing, the Company will pay a 10% broker fee to Moody Capital Solutions Inc., of which fee 3% is due to Atlanta Diversified.
On behalf of the Board,
Future Farm Technologies Inc.
William Gildea, CEO & Chairman
About Future Farm
Future Farm Technologies Inc. is a Canadian company with projects throughout North America including California, Florida and Maryland. The Company’s business model includes developing and acquiring technologies that will position it as a leader in the evolution of Controlled Environment Agriculture (CEA) for the global production of various types of plants, with a focus on cannabis. Future Farm provides scalable, indoor CEA systems that utilize minimal land, water and energy regardless of climate, location or time of year and are customized to grow an abundance of crops close to consumers, therefore minimizing food miles and its impact to the environment. 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. The contained system provides many other benefits including 90% less water, fertilizer and land used, less travel costs, seed to sale security, scalability, consistency due to year-round production, cost control, product safety and purity by eliminating environmental variability. The Company also utilizes a leading cannabis oil extraction technology, which enables the Company to process 20lbs/hour of cannabis plant to yield approximately 908 grams/hour of oil.
The Company is also in the business of designing and distributing LED lighting solutions utilizing the COB and MCOB technology. The Company is focused on delivering cost efficient lighting to North America via advanced e-commerce sites the Company owns and operates. LEDCanada.com, which caters to B2B customers, is a supplier of the newest and highest demand LED solutions. The Company also owns and operates COBGrowlights.com, which caters to both large and small agriculture green houses and controlled cultivation centers.
The Company recently acquired the exclusive right to use a patented, augmented reality (AR) technology in the cannabis industry. As described in more detail above, the Company has decided to spin this asset off to its shareholders.
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. Factors that could cause actual results to differ materially from those in forward-looking statements include market prices, exploitation and exploration successes, continued availability of capital and financing, and general economic, market or business conditions. 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.