Future Farm Entering Second-Largest Cannabis Market in U.S.
January 10th, 2018
Exclusive, News, Top News
In 2016, Florida voters approved a massive expansion of the state’s medical marijuana system. As a result, Florida’s medical marijuana market is now expected to top $1.5 billion annually by the year 2020. The nation’s third most populous state, with a high percentage of elderly residents who are more likely than other age groups to seek medical marijuana as treatment for a variety of common ailments, is struggling to keep up with the greatly increased demand for doctors’ licenses and medical marijuana cards.
Future Farm Technologies Inc. (CSE: FFT) (OTCQB: FFRMF) recently announced a major move into the market, further diversifying an impressive portfolio of business initiatives across several different geological markets and industry verticals. In this article we will take a look at the company’s acquisition, and how Future Farm’s move into Florida could greatly benefit the company both immediately and over the longer term.
Future Farm Technologies recently closed on its previously announced acquisition of a 10-acre operating greenhouse in Florida. The greenhouse is located in a designated legal grow zone near Orlando, which has a population of nearly 2.5 million and attracts over 62 million visitors each year. Management plans to run the greenhouse as-is for now, adding to Future Farm’s current revenue streams while the company applies for a cannabis cultivation permit.
In 2017, the greenhouse generated an estimated $2.8 million in revenue and $400,000 in EBITDA. The property, and the greenhouse, have already been approved at the county level for the cultivation and processing of cannabis, which positions it for significant near-term revenue potential. Management plans to explore the possibility of growing hemp on the remaining acreage of farmland outside of the greenhouse facility down the road. Future Farm also has an option to lease an adjacent 10-acre parcel for use as a hemp farm.
Beyond the Florida acquisition, Future Farm has a fully operational 120 acre hemp farm in Maine, along with a new lease on a nearby 100 acre site. The company also has an option to lease up to an additional 1,000 acres. Developing these additional properties into hemp farms would turn Future Farm into one of the largest hemp suppliers in the country, giving the company the raw material it needs to feed its proprietary extraction technology and create large volumes of high quality CBD extracts. These extracts can be used alone or incorporated into a variety of personal care and nutraceutical products that are increasingly in demand.
Future Farm recently partnered with one of the world’s leading agro-biotechnology companies, Rahan Meristem Ltd., to create and clone hemp plants that can be used in these farms. The goal is to cultivate and extract cannabinoids that can be used in the burgeoning medical cannabis industry through partnerships and its proprietary extraction technologies that have been developed in-house over the past several years.
Financing in Place
Future Farm Technologies plans to finance its growth plans with $4 million raised in a private placement, announcing the closing at the same time as the greenhouse acquisition. The move helps shore up the company’s balance sheet with cash as it looks to execute its ambitious business plans. As of August 31, 2017, the company had $4.1 million in total assets and $1.4 million in liabilities ahead of its commercialization phase moving into the new year and beyond.
In a recent press release, Future Farm provided an update on all of its initiatives. In addition to the aforementioned operations in Florida and Maine, the company is involved in legal markets in California, Rhode Island and Puerto Rico. Future Farm also sells state-of-the-art lighting systems for indoor grow operations through its LED Canada division and is preparing to spin off its cannabis-focused augmented reality company.
Future Farm Technologies Inc. (CSE: FFT) (OTCQB: FFRMF) represents a compelling opportunity in the burgeoning cannabis industry. With its recent entry into the explosive Florida medical marijuana market the company has gained a strategic foothold that could act as a springboard as the market matures. Future Farm is diversified across geographical markets and industry verticals, making the company one to watch over the coming quarters.
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