Future Farm Technologies Inc. (the “Company” or “Future Farm”) (FFT.CN) (FFT.CN) (FFRMF) is pleased to provide a mid-year update regarding activities for the first half of 2018 and plans for the remainder of 2018. The Company’s CEO, Bill Gildea, also thanks current and prospective shareholders for their ongoing support.
Future Farm had a very active winter and spring with significant activity in Canada, California, Puerto Rico, Massachusetts, Maine, Rhode Island and Florida. The market responded positively to this expansion and diversification of the portfolio. The first half of 2018 was primarily focused on integrating acquisitions, addressing market needs, improving operations, and taking advantage of synergies to increase shareholder value. The Company successfully raised US$4 million from Yorkville Advisors in March 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 first half of 2018.
The Company’s wholly owned ornamental plant business in Apopka, Florida, known as White Sand Nursey, exceeded 2017 expectations by generating revenue of US$2,878,483on a modified-cash accounting basis. For reference, the Company’s previous forecast was for US$2,800,000 in revenue. In 2018, the Company expects the business to generate US$3,000,000 in revenue with a similar cost structure, primarily due to improved efficiencies in marketing and sales.
The Company acquired White Sand in January 2018 for US$3,000,000 in order to position itself in the fast-growing Florida cannabis market. The White Sand greenhouse fits the state’s stringent criteria and designated zoning to legally cultivate, process, and dispense cannabis. Florida is positioned to be the second largest market after California, with more than 100,000 registered medical cannabis patients and projected annual sales of US$1.6 billion in 2020, according to the Arcview Group. (See: http://www.marketwired.com/press-release/new-report-florida-marijuana-sales-to-top-16-billion-by-2020-2180974.htm)
The Company continues to operate the greenhouse in full production while it applies for a cannabis cultivation license with the State of Florida. The Company retained two experienced Florida cannabis consultants, attorney Michael Minardi and operator Brett Puffenbarger, to assist with the application process. Pending license approval, the Company plans to upgrade the existing facility in preparation for cannabis production. Once fully licensed and operational as a cannabis business, the facility has the capacity to generate seven figures in revenue per month.
In addition to its plans for the White Sand greenhouse, the Company is also exploring the possibility of growing hemp on farmland acquired as part of the White Sand transaction.
In March, Future Farm exercised its right to return to the original seller the 15-acre parcel of land in Redland, Florida, along with its related mortgage, acquired in early 2017. Future Farm made the decision to focus efforts instead on the continued operation and development of its operations in Apopka.
In February, Future Farm’s 80% subsidiary, Future Farm Maine, received three licenses for industrial hemp cultivation in Maine. Future Farm Maine is expected to provide multiple revenue streams in the form of (1) harvested hemp biomass; (2) CBD concentrate and isolate extracted from the biomass; and (3) certified organic hemp seeds propagated for sale.
Future Farm is utilizing Maine farmland acquired in Amity and leased in Hersey to grow and process hemp. The combined properties total 220 acres with an option for an additional 1,000 acres. The leased land is organic and all activity will follow the Maine Organic Farmers and Gardeners Association organic guidelines. .
The Company also leased approximately 13,000 square feet of indoor space, with the option to expand, in Belfast. Future Farm Maine retrofitted the space with state-of-the-art LED lighting and equipment to germinate 200,000 feminized hemp CBD seeds for planting in the summer growing season.
Future Farm plans to bring its expertise in state-of-the-art, scalable extraction to the project to take advantage of the fast-growing CBD oil market. Once harvested this fall, the Company plans to process the hemp onsite in an extraction and isolate lab to create both CBD oil and high-value isolate that can be used to make edibles, lotions and tinctures.