Future Farm Technologies Inc. (the “Company” or “Future Farm”) (CSE:FFT) (FFRMF) is pleased to announce that it has entered into a purchase and sale agreement with Derek Ross of Cannatech LLC for the acquisition of a 120-acre licensed industrial hemp farm in Amity, ME (the “Farm”). The Farm has just finished harvesting its first crop, which is now being prepared for further processing into high-grade cannabidiol oil, or CBD hemp oil. As part of this acquisition, Future Farm and Cannatech have also entered into a new joint venture agreement to continue operating the Farm.
With this acquisition, Future Farm is now strategically positioned in both the fast growing hemp market as well as the cannabis market. Derek Ross of Cannatech will stay on as the operator and grower of high CBD strains and retain a 20% interest in the Farm. The Farm is currently the largest operating hemp farm in Maine.
“This strategic acquisition puts Future Farm in the CBD business in a big way and opens the door for growing, researching, developing, and selling premium hemp and CBD oil, which contain a broad range of cannabinoids used to treat a growing population of CBD oil consumers,” comments Bill Gildea, CEO of Future Farm. “We are pleased to be working with Derek and his team of experienced growers and we look forward to adding value by installing new state of the art CBD oil extraction equipment on-site to meet the increasing demand of CBD oil.”
Derek Ross, CEO of Cannatech comments, “I’m excited to grow this business with Future Farm. Partnering with a public company will allow us to scale this business faster, enabling us to process large amounts of hemp flower into highly pure CBD concentrates.” Mr. Ross continues, “We are still in the early stages and already have germinated over 6,000 hemp plants and 750 clones for cultivation.”
Hemp is a fast growing, high margin closely-related business to the cannabis business growing at a 22% CAGR currently valued at over $688 million, and estimated to grow to $1.8 billion by 2020 in the USA.
Hemp is a member of the Cannabis Sativa L family, but unlike marijuana it contains only 0.3 percent or lower tetrahydrocannabinol (THC), the psychoactive chemical that causes a euphoric response. Grown for centuries for its seeds and stalks, hemp was once a staple crop and legal to cultivate in the United States until the 1930s. It can be used to produce a multitude of products, including food, paper, textiles, building materials, and body care products.
As consideration for the acquisition of the Farm, Future Farm agrees to pay Derek Ross$80,000, payable in equal installments over the course of six months. Mr. Ross is also entitled to receive 250,000 shares of the Company’s common stock upon closing of the real estate transaction. There is no finder’s fee associated with this transaction.
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, generate 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.