Future Farm and High Purity Natural Products to Merge
June 03 2020 - 8:00AM
via NEWMEDIAWIRE -- 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 info@highpuritynaturalproducts.com 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.
Investor Relations 888-387-3761 x710
investor@futurefarmtech.com
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