Future Farm Technologies Inc. (“Future Farm”) (CSE: FFT) (OTCQB: FFRMF) and High Purity Natural Products, LLC (“High Purity”) are pleased to announce that on May 27, 2020 the parties signed a Letter of Intent to merge. The companies will sign a definitive Merger Agreement and subsequently close in the immediate future.
Tom Barrette, President and COO of Future Farm, who led the Future Farm effort to put the merger together, comments, “Mike Matton and his team are among the most respected in the industry. We are especially excited by their brilliantly executed reaction to customer demand for hand sanitizer products, leading to product sales in that category of approximately $440,000 from mid-March to mid-April with associated direct costs of $330,000.”
Future Farm has already been providing strategic and financial resources to support the rapid growth of High Purity’s business. That business includes both High Purity’s established operations as a leader in advanced contract manufacturing of health and wellness products featuring CBD and its recent expansion into the hand sanitizer product lines that retailers and other business customers are demanding in the face of the COVID-19 pandemic. Future Farm’s support to date has included US$125,000 in working capital loans, introductions to large, creditworthy customers, facilitating key parts of the High Purity hand sanitizer supply chain and identifying and closing new sources of nondilutive growth capital.
The merger of the two companies immediately implements a major step in Future Farm’s core strategy: becoming a leading supplier of pharma-grade health and wellness products, including those which feature hemp-derived CBD. High Purity is a leading Massachusetts-based advanced white label and contract manufacturer of cutting-edge nutraceutical and cosmetic products using organic and natural plant extracts, including hemp-derived CBD. High Purity has been a leading manufacturer of these products utilizing hemp and pure CBD extracts since the Massachusetts Department of Agriculture started its hemp program in 2018. From its inception, High Purity has diligently expanded its customer base and now sells its high-quality products to a broad array of customers, including leading consumer brands and prominent retailers nationwide.
“Merging with Future Farm will provide High Purity with access to incredible talent, as well as access to capital markets,” says Mike Matton, High Purity’s founder and CEO. “Combining Future Farm’s expertise with High Purity’s rapidly growing business creates a powerhouse team.”
“We are excited to combine High Purity and Future Farm,” says Bill Gildea, Future Farm’s CEO. “Merging with High Purity will accelerate our growth to a cash flow positive, scalable business with multiple revenue streams. This transaction allows us to capture a share of the market for CBD products which Cowen Inc. estimates will be $18 billion by 2025.”
Pursuant to the terms of the Letter of Intent, Future Farm will acquire 100% of the outstanding membership units of High Purity by means of a reverse triangular merger in which a subsidiary of Future Farm will be merged into High Purity (the “Transaction”). As a result of the Transaction, High Purity will become a wholly owned subsidiary of Future Farm. All outstanding membership units of High Purity would be exchanged for newly issued common shares of Future Farm at the closing of the Transaction. The consideration to be provided by Future Farm to the holders of High Purity’s outstanding membership units in the Transaction would be 15 million common shares of Future Farm.
The Transaction is not expected to constitute a fundamental change or reverse-takeover for the Company, nor is it expected to result in a change of control of the Company, within the meaning of applicable securities laws and the policies of the Canadian Securities Exchange.
For further information about Future Farm Technologies Inc., contact Investor Relations at investor@FutureFarmTech.com or via telephone at (888) 387-3761 x710.
For further information about High Purity Natural Products, LLC, contact Michael Matton at firstname.lastname@example.org or by telephone at (617) 686-0843.
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.
Published at Wed, 03 Jun 2020 12:11:20 +0000