Future Farm Provides Update on Operations and Growth Initiatives
During its second fiscal quarter of 2020, which ended on August 31, Future Farm announced that it would focus its resources on existing business operations with the highest potential for revenue growth and profitability.
Vancouver, BC, Feb. 18, 2020 (GLOBE NEWSWIRE) -- via NEWMEDIAWIRE -- Future Farm Technologies Inc. (the “Company,” “Future Farm” or “FFT”) (CSE: FFT) (OTCQB: FFRMF) is pleased to provide an update on recent activities as it plans for its new fiscal year on March 1, 2020. The Company’s CEO, Bill Gildea, thanks current and prospective shareholders for their ongoing support.
Calendar year 2019 was an inflection point for Future Farm. The decision to grow hemp in Maine in 2018 and 2019 led Future Farm’s management team to analyze deeply the market for the sophisticated production of plant-based health and wellness products. The Company has determined that the quality of that market with respect to both profitability and growth is outstanding. In the short term, Future Farm will use the hemp biomass from its 2019 harvest to produce products in collaboration with first-rate advanced manufacturers. But the Company’s real goal in the new fiscal year beginning next month is to acquire one or more operating manufacturing companies to quickly increase its share of that market.
The summaries below provide a more in-depth update on the Company’s various projects.
SIGNIFICANT EVENTS
During its second fiscal quarter of 2020, which ended on August 31, Future Farm announced that it would focus its resources on existing business operations with the highest potential for revenue growth and profitability. With the hemp crop on its 100-acre farm in Maine thriving, and robust expectations for the hemp-for-wellness product market, the Company decided to focus on hemp cultivation, the extraction of cannabinoids and product manufacturing to meet the burgeoning demand in the U.S. and global markets for pharma-quality health and wellness products.
Future Farm continues to pursue licenses to grow cannabis for sale, research and development in Canada. The Company has discontinued projects related to marijuana in the United States in order to enhance its access to capital and simplify other aspects of business operations such as banking and tax planning. As an initial step in this effort, Future Farm sold its interest in FFPR, LLC, the company developing dispensaries in Puerto Rico, back to its local partner in that effort, Clinica Verde, which is owned by TCG Investments. Future Farm was a 40% owner of FFPR.
CULTIVATION AND PROCESSING
FLORIDA
Future Farm owns a fully operational greenhouse business on approximately 10-acres 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.
In response to the recent passage of the 2018 U.S. Farm Bill, the Company decided to expand its existing hemp portfolio to include a partnership in Florida. In March 2019, Future Farm was one of two applicants selected by Florida Agricultural & Mechanical University (“FAMU”) to enter into a research partnership to cultivate hemp in the state. The partnership allows Future Farm to be one of the first companies to plant hemp in Florida.
FAMU's staff and students will conduct joint research with Future Farm in the areas of pharmacology, agriculture technology and biosciences to develop the ideal cultivars for Florida’s various climates and soil conditions.
In September 2019, Future Farm management met with representatives of FAMU at FAMU’s 3,800-acre site in Brooksville, Florida in order to select a site for the partnership’s first hemp farm. Future Farm selected a 10-acre parcel and will begin soil sampling and infrastructure design for the planting permit proposal. Future Farm is still assessing whether to move forward with this opportunity.
HEMP-DERIVED HEALTH AND WELLNESS PRODUCTS
During calendar year 2019 Future Farm leased 100-acres of land in Hersey, Maine. The Company also leased a 13,000-square-foot facility in Belfast equipped with state-of-the-art lighting and equipment to germinate certified hemp seedlings. Future Farm expects its hemp operations to provide multiple revenue streams from the sale of: hemp seeds, bulk products extracted from the biomass grown in Maine, such as whole-plant extract, distillate and isolate, as well as consumer products manufactured for Future Farm business customers by subcontractors.
In May 2019, the Company signed an agreement with Northeast Processing (“NEP”), a Vermont-based hemp processing company, to process, test and package its hemp grown in 2019 into top quality whole plant extract, distillate, isolate and other products. The partnership allows for a scalable, efficient and flexible approach to processing the Company’s harvest. Future Farm expects to offer product manufacturers premium quality distillates, isolates, extracts, water-soluble products and much sought after zero-THC products. The successful 2019 season has positioned the Company to now begin soliciting orders for custom formulations, bulk orders and product manufacturing.
In October 2019, the Company’s hemp crop passed Maine’s state-mandated testing for acceptable levels of THC. Future Farm harvested its hemp in October and has completed the drying and curing phase of both the biomass for extraction and seeds. Both crops achieved yields that outpaced the Company’s apparatus for seed extraction, plant bucking, processing and storage. The Company acquired more robust seed extraction and cleaning equipment to meet the demands of its harvest. It now has seeds ready for sale and biomass ready for extraction.
The Company has an active sales pipeline for both hemp-derived products and its hemp seeds with projected revenue in fiscal year 2021, which begins on March 1, 2020, of at least US$3 million, against costs of approximately US$2 million.
The Company has at least six million high quality Cherry Wine hemp seeds currently available for sale from this year’s harvest. The Company invites interested buyers to contact [email protected].
RHODE ISLAND
Future Farm owns a 15,000-square foot building in Providence, Rhode Island that is actively being marketed for sale as part of the Company’s effort to streamline operations and focus on U.S. hemp and other plant-derived product operations. The building is located in an M-1 zone, which permits the cultivation of cannabis by right. The Company invites interested buyers to contact Greg Murphy of Remax Commercial at [email protected].
BREEDING AND GENETICS
The core of Future Farm’s breeding and genetics operation are in its relationship with CEPG Consulting and Design Inc. (“CEPG”). CEPG is an experienced developer of controlled environment plant growth systems located in St. John’s, Newfoundland. CEPG intends to create elite new strains of cannabis and produce and sell cannabis seed, seedlings and clones. Sales will be to licensed cannabis producers and licensed cannabis retailers within Canada. The Company has a 50% interest in CEPG.
In August 2019, CEPG was issued an Industrial Hemp License from Health Canada. This license, in combination with a building permit previously issued by the City of St. John’s, Newfoundland, allows CEPG to move forward with the construction of its planned hemp research facility at 148 East White Hills Rd.
CEPG intends to mass-produce elite clones of cannabis plants. Through elite cloning, one may create a new harvest with exact replicas of the best performing plants to achieve specific, desired results in patients and recreational users. CEPG intends to commercialize the intellectual property it develops by selling clones. The business is in the planning phase of setting up lab operations in Newfoundland, Canada.
In furtherance of this endeavour, another license application has been submitted to Health Canada as part of a potential collaboration between CEPG and The Memorial University of Newfoundland (“MUN”) to develop a research program for the characterization of elite Cannabis clones.
CORPORATE MATTERS
In December 2019, the Company held its Annual General Meeting of Shareholders in Vancouver, British Columbia, Canada. At the meeting, all resolutions were passed with the required majority. The Directors of the Company to hold office until the next annual meeting will be incumbents William Gildea, Craig Stanley, Scott McDermid and newly appointed Director Thomas Barrette.
After the Annual General Meeting, director Scott McDermid submitted his resignation from the Board of Directors in order to focus on family business. The Company thanks Mr. McDermid for his time and efforts while serving on the Board and wish him well in his future endeavors.
In January 2020, the Company announced that in addition to acting as Director, Mr. Barrette would also serve as Future Farm’s President and Chief Operating Officer. Mr. Barrette is an accomplished attorney and business executive with deep experience working with companies facing challenges such as sophisticated financing needs, complex strategic partnerships with multiple parties, and significant government regulation. Mr. Barrette has been consulting with Future Farm’s management team for over a year, and has become an integral part of the future of the Company.
Over the course of the last year, Mr. Barrette, in close collaboration with Future Farm’s management team, has identified that the best opportunity to create value for Future Farm’s shareholders is through the production of plant-based health and wellness products, including those which feature hemp-derived compounds. Pharma-quality manufacturing of hemp-derived and other plant-based health products is high margin, low risk and growing rapidly. The Company is therefore actively seeking acquisition opportunities to increase its share of that market rapidly.
The Company also announces that it will strive to provide regular, quarterly updates to its shareholders in an effort to demonstrate continued transparency and disclosure. In furtherance of this initiative, the Company has made a renewed commitment to shareholder communication by retaining leading investor relations firm Renmark Financial Communications. Investors and members of the media seeking more information about the exciting strategic direction of Future Farm, or any other aspect of its business, should contact Renmark as follows:
Renmark Financial Communications Inc.
Investor Relations - Daniel Gordon: [email protected]
Media - D. Elizabeth (Liz) Culley-Sullo: [email protected]
Canada: (416) 644-2020 or US: (212) 812-7680
CONCLUSION
Future Farm continues to execute on its plan to focus on plant-based health and wellness products, including those derived from hemp. It is management’s belief that acquisitions and capital investment in the sophisticated production of plant-based health and wellness products will fuel the continued growth of Future Farm to a cash flow positive, scalable business with a broad base of business customers.
To that end, the Company continues to raise capital and look for new opportunities to expedite growth. Future Farm thanks current and prospective shareholders for their interest and ongoing support.
For further information, contact Investor Relations at [email protected].
On behalf of the Board,
Future Farm Technologies Inc.
William Gildea, CEO & Chairman
About Future Farm Technologies Inc.
Future Farm Technologies is a Canadian public company that is poised to be a leading supplier of pharma-grade health and wellness products, including those made from hemp, to meet the burgeoning demand in the U.S. and global markets.
Future Farm’s seasoned management team brings a deep understanding of operations and agriculture with the financial and regulatory expertise needed to become an industry leader in the rapidly growing market for health and wellness products made from hemp and other plants.
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.
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 be successful in its efforts to further develop its existing hemp operations, or that the Company will be able to raise sufficient capital to execute on its intended business plan and objectives. 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.
