US (FL): Future Farm to acquire 10-acre operating greenhouse
The company has also 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.
For more information:
Future Farm Technologies
342 Compass Circle
North Kingstown RI 02852
T: (617) 834-9467
info@futurefarmtech.com
futurefarmtech.com