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.