New Age Farm (NF-Cse) June 28, '17 Further to the news release of April 12, 2017, a definitive joint venture agreement has been signed between New Age Farm Inc.'s Washington State subsidiary, New Age Farm Washington LLC (NAF Washington), and David Baker to secure three additional tenant growers, along with a lease-to-own option on 11 acres of industrial land in Moses Lake, Wash.
Under the terms of the J/V, NAF Washington and Baker have formed a 50/50 joint partnership corporation in Washington State, CannaUsa LLC ("CannaUsa"), that will hold the lease on the eleven acres of industrial land in Moses Lake, WA ("Moses Lake"). This will increase the Company's Washington State property holdings to three separate agri-campuses in Sumas, Oroville and Moses Lake. In addition, Baker will bring three Tier 3 Production/Processing licensees to CannaUsa, and these licensees will become the Company's newest tenant-growers.
CannaUsa will build out and operate greenhouse facilities on the Moses Lake Property that will accommodate New Age Farm's tenant-growers for year round indoor operations. The Company's current strategy calls for complete site preparation including site grading, security cameras and fencing, power and all other additional required utilities. Updates will be provided on an ongoing basis.
On completion of the Moses Lake agri-campus, New Age will have in excess of 250,000 square feet of canopy growing space available to its tenant-growers at its three Washington state locations. The Moses Lake agri-campus will be structured to allow for a total growing capacity of approximately 170,000 square feet of canopy space - this means up to five Tier 3 tenant-growers and one additional Tier 2 tenant-grower can be housed at the facility.
Carman Parente, president and CEO of New Age Farm, commented, "When at full operating capacity, these additional Tier 3 tenant-growers at Moses Lake will have the capacity to generate between US$6 and $8 million in gross revenues per month from their operations . With our turnkey tenant-grower model, where our clients pay base rent and fees for our specialized services such as the expertise of our master growers, our storage, processing and production capabilities, New Age Farm is positioned to begin generating significant income over the next year."
The JV remains subject to regulatory approval. The Company may pay a finder's fee in accordance with CSE policies.
About New Age Farm
British Columbia
Through its wholly-owned subsidiary, NHS Industries Ltd. ("NHS"), New Age Farm owns a five and a half acre facility in the lower mainland of BC that includes a 48,000 square foot greenhouse. NHS is in the process of formulating innovative proposals for small scale agricultural facilities for exploring multiple avenues for cash flow processes. Anticipating Canadian federal government regulations regarding the legalization of cannabis for recreational purposes is one avenue that NHS will be exploring. NHS also intends to look at other high value crop possibilities such as hemp and its potential revenue generation. Management's intent is for NHS to achieve positive cash flow as expediently as possible, all the while developing and maintaining multiple product income streams that will foster profitability, rather than relying on a single market sector.
About the Washington I-502 Marijuana Market
Sales of marijuana products in Washington State have for the first time surpassed $200 million in a quarter. The News Tribune reports residents and visitors bought more marijuana than ever before in the second quarter of 2016, based on an analysis of purchase and tax records from two state agencies. In the first quarter of 2016 January, February and March people spent $54.8 million mor4e on spirits than marijuana, which includes the cost of the products and its associated taxes. By the second quarter April, May and June that gap closed to nearly $37 million. Those amounts include taxes levied by the state on those products. Spirits sales do not include wine and beer. Marijuana sales include all cannabis products, but not paraphernalia. Marijuana sales in the second quarter of 2016 amounted to nearly $212 million. Spirits sales in the same period amounted to almost $249 million. In July, the state closed medical marijuana shops, making all sales go through licensed recreational marijuana storefronts. Sales at retail pot shops shot up by $66.6 million in the third quarter of the year, to $278.6 million. Washington voters legalized recreational marijuana in 2012. In the fall of 2016 voters in California, Massachusetts and Nevada approved recreational pot. Colorado, Oregon and Alaska have also legalized recreational marijuana.
For further information about New Age Farm, please consult the Company’s profile on SEDAR at www.sedar.com. Visit the Company’s website at www.newagefarminc.com for more information and to view a video of the Oroville facility: newagefarminc.com
WWW.NEWAGEFARMINC.COM |
