Future Farm Closes on $4 Million USD Financing in Anticipation of Closing on Massachusetts Dispensary and Announces Appointment of New Auditor
VANCOUVER, British Columbia, March 13, 2018 /PRNewswire/ —
Future Farm Technologies Inc. (the « Company » or « Future Farm ») (CSE:FFT) (FFT.CN) (FFRMF) is pleased to announce that it has closed on a second investment of $4,000,000 USD from Yorkville Advisors Global, LP (« Yorkville »). Proceeds from the private placement will be used in part to acquire the previously announced, provisionally licensed Registered Marijuana Dispensary (« RMD ») in Attleboro, MA.
In January 2018, Future Farm signed a Letter of Intent to acquire an interest in Bristol County Wellness Center, Inc. (« BCWC »). BCWC was recently awarded a special permit from the City of Attleboro and a provisional license from the Department of Public Health to build and operate a 24,700-sq ft. RMD that will grow and sell medical marijuana, plus two additional dispensaries upon approval. This vertically integrated license allows BCWC to build out its facility and engage in cannabis cultivation, processing and retailing.
William Gildea, CEO of Future Farm comments, « We have been diligently working with the experienced team at BCWC to move this transaction to a quick close and are thrilled about the potential to participate in the operations of a Massachusetts RMD as it further positions our Company for revenue growth in 2018. »
The timetable calls for construction to begin right after closing, which is imminent, and revenue to begin in the fourth quarter of 2018. BCWC is provisionally licensed to cultivate cannabis with up to 300 lights, process and extract oil to make edibles, and sell through a medical dispensary. BCWC may also sell up to 30% of its cannabis to other dispensaries. ArcView Market Research & New Frontier Research estimates the legal cannabis market in Massachusetts to reach $1.07 Billion by 2020.
The Company is also pleased to provide an update with respect to the exercise of warrants. As of March 7, 2018, Future Farm’s $0.35 and $0.37 warrants have both expired. Since December 2017, the voluntary exercise of these warrants brought the Company a total of almost $2,000,000.
« These fundraising activities enable us to execute on some exciting projects we have lined up as well as expand on our existing portfolio, » explains Mr. Gildea.
The Company is also pleased to announce the appointment of a new auditor. Davidson & Company LLP, Chartered Professional Accountants (the « Former Auditor ») has been terminated and Dale Matheson Carr-Hilton Labonte LLP (« DMCL »
or the « Successor Auditor ») has been appointed as the new auditor, effective immediately. Reporting notices prepared in accordance with National Instrument 51-102 by the Former Auditor, the Successor Auditor and the Company have been filed on SEDAR.
DMCL is an independent Vancouver-based accounting firm with 20 partners and over 150 professional and support personnel. They are recognized for their expertise in audit and assurance, accounting, taxation and business advisory for public and private companies, not-for-profits and owner-managed businesses.
Under the terms of the Yorkville financing, the Company has agreed to enter into a Secured Convertible Debenture in the Principal Amount of $4,000,000 USD, bearing annual interest at 8% and repayable within 18-months, or convertible into Common Shares of the Company at a price of C$0.58 per share. In connection with the Debenture, the Company has also granted a Warrant Certificate to purchase 7,421,150 Common Shares at an average price of C$0.70 per share. The Warrant Certificate expires on March 7, 2021.
As further part of this financing, the Company will pay a 10% broker fee to Moody Capital Solutions Inc.
On behalf of the Board,
Future Farm Technologies Inc.
William Gildea, Chairman & CEO
About Future Farm
Future Farm Technologies Inc. is a Canadian company with projects throughout North Americaincluding 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.
For further information, contact:
William Gildea
Director
+1-617-834-9467