HEMP FARMS AR INVESTOR PRESENTATION April 2018
Forward Looking Statements The information set forth in this document contains forward-looking statements. Statements in this document, which are not purely historical, are forward looking and include statements regarding beliefs, plans, expectations or intentions regarding the future. Except for the historical information presented herein, matters discussed in this document contain forward-looking statements that are subject to certain risks and uncertainties that could cause actual results to differ materially from any future results, performance or achievements expressed or implied by such statements. Statements that are not historical facts, including statements that are preceded by, followed by, or that include such words as estimate, anticipate, believe, plan, intend, expect, may, should, or similar statements are forward-looking statements. Risks and uncertainties for the Company include, but are not limited to, the risks associated with the impact of general economic conditions in countries in which the Company conducts business, the impact of competitive products and pricing, product demand and market acceptance, new product development, the continuation and development of key customer and supplier relationships, and the availability of high-quality, qualified personnel and management. Other risks include, but are not limited to, factors affecting development and expansion activities generally including access to capital to meet all of the Company s financial requirements and the Company s ability to control costs. There can be no assurance that the Company s efforts will succeed and the Company will ultimately achieve sustained commercial success. These forwardlooking statements are made as of the date of this document, and the Company assumes no obligation to update the forwardlooking statements, except as required by applicable securities laws, or to update the reasons why actual results could differ from those projected in the forward-looking statements. Although the Company believes that the beliefs, plans, expectations and intentions contained in this document are reasonable, there can be no assurance those beliefs, plans, expectations or intentions will prove to be accurate. 2
Future Farm is a Premier AgTech Company Future Farm Technologies (CSE:FFT, OTCQX:FFRMF) is rapidly expanding its diversified portfolio of assets relating to cannabis, hemp, food and other plant growth technologies. 3
Future Farm Has a Diversified Portfolio of Assets Divisions 4
Management & Board of Directors Bill Gildea, MBA: Chairman & CEO Mr. Gildea is the founder and president of ECAP LLC, a boutique investment firm committed to transforming environmental concerns into environmental and business opportunities. With over 20 years of experience, he is recognized as a pioneer in the field of environmental insurance, and has a strong record of successfully advancing environmental businesses and projects through effective finance and investment strategies. John Sweeney: Director & COO Mr. Sweeney brings with him 16 years of direct cgmp (current Good Manufacturing Practices) manufacturing experience in operations of industry leading biotechnology companies including Pfizer, Wyeth, Genzyme and most recently as Vice President of Operations at Tilray, a 60,000-square foot, federally licensed Canadian medical cannabis operation on Vancouver Island. He has extensive knowledge and experience in the requirements of regulated manufacturing for commercial and clinical products and served as liaison for auditing regulatory agencies including the FDA and EMA. Mr. Sweeney holds an MS in Engineering Management from Tufts University in Medford, MA and a BS in Biology from the University of New Hampshire, Durham. Craig Stanley: Director & Acting CFO Mr. Stanley is CEO of CBO Financial, Inc., which he founded in 1999 as a financial consulting firm that aids mission driven organizations in the development and financing of projects that revitalize distressed communities. Since then, Mr. Stanley and CBO have facilitated investment of $850 million in flexible, below market financing to help transform low income communities and the lives of people who call them home. CBO has received six awards totaling $150M from the U.S. Treasury Department under the New Markets Tax Credit program, in addition to securing 11 additional awards for clients totaling $378M. CBO is headquartered in Columbia, MD and serves a nationwide service area including Puerto Rico and Guam. Scott McDermid: Director, Manager of LED Canada Mr. McDermid is the proprietor of Rocky Mountain Investments, a real-estate investment company. Mr. McDermid s experience in land development and real estate management extends over 20 years. George Groccia: Project Manager Consultant Mr. Groccia is an Industrial/Organizational Psychologist with a track record of helping businesses grow to their fullest potential. Having earned his MA at Golden Gate University, Mr. Groccia applied his craft as a consultant with Bearing Point, liaising with top executives within Phillips Life Sciences division. A career entrepreneur, Mr. Groccia grew a local business to gain national relevance in the hospitality sector guiding the profitable sale of his company. 5
Cannabis Advisory Board John Sweeney, Chairman of Advisory Board (See Management Slide) Chris Lesh: Mr. Lesh has over 10 years experience within the cannabis cultivation and dispensary industry in Washington State. Mr. Lesh previously served as Production Director for Privateer Holdings, Inc., where he was responsible for the operational oversight of cannabis production at Tilray s Vancouver facility, and for the sourcing of additional production capacity throughout the west coast and Canada. Mr. Lesh adds great experience when it comes to sourcing capital, increasing production capacity, and setting up the facilities to operate efficiently and effectively. Derek Ross: Mr. Ross has over ten years of experience working as a consultant for various non-profit dispensary and cultivation organizations all across the United States. Mr. Ross is the CEO and Founder of Cannatech LLC, a Rhode Island-based cannabis consulting company as well as Cannatech Medicinals, a Massachusetts registered cannabis dispensary. Mr. Ross has been central to the design of controlled environment cultivation facilities for clients, ranging from residential to industrial scale and regularly conducts extensive training seminars and classes on the best practices for fruitful cultivation. His expert knowledge, extensive background, and industry relationships makes Mr. Ross the perfect strategic addition to the Board, as he will be able to add value on several near term initiatives. Donny Sizemore: Mr. Sizemore is a proven project developer, brand conceptualizer and organizational builder. Mr. Sizemore melds 28 years of project development experience and a penchant for serious industry analysis with a unique set of brand building acumen. Mr. Sizemore is CEO of Dominion Solaris, LLC, which consults and teaches best practices in sorting through various state compliance, building code, and operational metrics within the cannabis industry. Mr. Sizemore focuses on bottom line results that are data driven, spanning from seed-to-sale production through full brand development. His cannabis industry competence and connections will be fully implemented across a various mix of disciplines and creative endeavors for Future Farm Technologies. David Gawitt: Mr. Gawitt has over ten years of experience working as a consultant for various dispensary and cultivation organizations, primarily in the western United States. Mr. Gawitt is the CEO and Founder of CannaSure Agriculture LLC, a Denver, Colorado based cannabis-consulting company, which serves as a consultant to startups as well as established producers. Mr. Gawitt is experienced in production, retail design, regulatory compliance and marketing strategies as well as brand building. 6
Cannabis Industry Medical Uses: Epilepsy, Alzheimer s, Cancer Treatment, Migraines, Nerve Damage, HIV/AIDS, Multiple Sclerosis, etc. 9 states and DC allow recreational sales of marijuana as well as medical; an additional 20 allow medical use only. Others allow only for the sale of CBD, an extract which is nonpsychoactive. (http://www.businessinsider.com/legalmarijuana-states-2018-1) Marijuana Legalization by State (Mar 2018) Estimated amount of cannabis that Americans consume annually: 8.8-17.6 million pounds (WhiteHouse.gov) Average price per pound for wholesale cannabis in California is $1,400 (www.cannabisbenchmarks.com) California to account for 40% of US cannabis market in 2017 (GreenWave Advisors) 59% of U.S. population now lives in a state where marijuana has been legalized 30 States including Washington DC have medical marijuana laws 22 States including Washington DC have Operating Dispensaries 7
Cannabis Market Data Sales Growth Source: BDS Analytics (Marijuana Business Daily) 8
Hemp Market Data Sales Growth U.S. Retail Market for Hemp Grew to $688 Million in 2016 Estimated to Grow to $1.8 Billion by 2020 9
Cultivation & Vertical Farming Division Business Model: Build-Own-Operate Cannabis Farms Turnkey medical marijuana growing operation together with capital necessary to commence and stabilize operations Additional private sector equipment leasing opportunities Produce Farms Future Farm is developing several projects in the Eastern US Each license deal is >US$3M New Market Tax Credit (Federal Government Program) Projects in partnership with CBO Financial Hemp Farms Future Farm is positioned as a hemp farming and CBD business for growing, researching, developing and selling organic hemp and CBD oil Business Model: License & Patent Vertical Farming Technology Future Farm has secured a worldwide perpetual license to use and license proprietary vertical farming technology Benefits of this Controlled Environment Agriculture (CEA) include: 90% less water, fertilizer and land used Zero chemical pesticides Zero fuel & oil use by farm machinery Zero bulk plant transportation 10x Greater Yield than greenhouse & 100x Greater Yield than conventional 30x less Food Miles travelled (50 vs 1500) 100% Pure & Organic Products 10
Cultivation & Vertical Farming Division Florida: Operating Greenhouse with Potential for Cannabis License Florida Regulations & Market Data Floridians voted yes in November 2016 on Amendment 2, which broadened medical cannabis usage to individuals with "debilitating" medical conditions as certified by a licensed physician Florida cannabis market projected to be $1.6B in annual sales by 2020 (Arcview Market Research) o Expected that the Florida Cannabis market will be second in size to California One of the larger US markets for legal marijuana, even without considering the potential for recreational legislation Property and Business Acquired By Future Farm 10-acre operating greenhouse in Apopka, Florida o Fully operational 10-are greenhouse business, with option for additional 10 acres. o Located in Orange County, which is designated to legally cultivate, process and dispense cannabis. Next Steps Increase output of existing decorative plant operation using FFT s cultivation technology Obtain cannabis cultivation and extraction licenses Estimated US$3M in Revenue in 2018 from 10-Acre Greenhouse 11
Cultivation & Vertical Farming Division Massachusetts: Attleboro Farm Market & Opportunity ArcView Market Research and New Frontier Research each estimate the adult use recreational market in Massachusetts to have annual sales in excess of $1 billion by 2020. In Massachusetts, licensed Registered Marijuana Dispensary s ( RMD ) and applicants with provisional licenses (such as BCWC) applying for an adult use license are eligible for prioritized application review by the state. Attleboro is located within driving distance to many of the most densely populated states in the US. Location & Partner Future Farm acquired a controlling interest in Bristol County Wellness Center ( BCWC ), a licensed cannabis grow and dispensary in Massachusetts. BCWC was awarded a special permit from the City of Attleboro and a provisional license from the Department of Public Health to build and operate a 24,700-sq ft. RMD that will grow and sell medical marijuana. This vertically integrated license allows BCWC to build out its facility and engage in cannabis cultivation, processing and retailing. BCWC plans to add two additional retail outlets when suitable locations are identified and required approvals are obtained. Next Steps The timetable calls for construction to begin in the second quarter of 2018, and revenue to begin in the fourth quarter. 12
Cultivation & Vertical Farming Division Maine: Hemp Farms Opportunity Future Farm is well positioned to capitalize on the growing demand for CBD and other cannabinoids, not only in the pharmaceutical development industry but in the existing and growing consumer market, using its fullspectrum of in-house technologies (state-of-the-art, scalable cultivation and extraction equipment). With over 100 organic certified acres ready to plant and an additional 1,000 acres available for expansion, Future Farm Maine is poised to be the largest hemp farm in the North East. Market CBD is poised for expansion due in part to the FDA s acceptance of a New Drug Application submitted by GW Pharmaceuticals plc for Epidiolex, a drug containing CBD. Goldman Sachs projected 2025 worldwide sales of US$2.2 billion for Epidiolex, with more than half 56% of sales coming from off-label use. Properties 1) Amity, ME (Hemp Farm) 120-acre industrial hemp farm in Amity, ME 1,700 plants are expected to be harvested per acre, which translates into ~10-kilos of CBD distillate per acre $90,000 per acre in revenue, or on 120-acres a projected annual revenue of $10,800,000. 2) Hersey, ME (Hemp Farm) 220-acres of farmland (with an option for another 1,000-acres) to grow and process organic hemp. 3) Belfast, ME (CBD Hemp Cultivation & Processing into CBD Oil) 12,960 sq. ft. of space in a 60,000 sq. ft. building, with an option to expand or buy the building Next Steps Future Farm Maine will use the Belfast building to germinate 200,000 hemp seeds over the next few months, which then will be planted to meet the summer growing season at the Amity and Hersey farms. 13
Cultivation & Vertical Farming Division Rhode Island: Providence Farm Market & Opportunity Rhode Island is a densely populated state with over one million residents. Medical Marijuana laws allow urban farms to cultivate cannabis in designated areas. Property Providence, RI o Future Farm purchased a 15,000-sq ft building, located in a M-1 zone, which permits the cultivation of cannabis o The farm will showcase Future Farm s proprietary scalable, indoor Controlled Environment Agriculture (CEA) technology o The farm's proximity to numerous northeast routes will enable the farm to capitalize on many channels of distribution. Partner Mr. Jim Coull is leading the design & construction work at the farm. He offers commercial design-build, general contracting and preconstruction services to the cleanroom laboratory, advanced technology, education and healthcare industries. Mr. Coull has experience with Future Farm s CEA technology, and even helped to refine the CEA system by creating greater efficiencies during growth trial phases. Next Steps The Company intends to lease this property to a local, licensed cultivator who will use the property as a licensed medical marijuana cultivation space, providing wholesale cannabis to Rhode Island s state-sanctioned dispensaries. 14
Cultivation & Vertical Farming Division Maryland & Alabama: Produce Farms Highlights Produce fresh food Provide quality jobs in a low income community Provide job training and therapy opportunities Next Steps CBO to perform feasibility study and obtain financing Partners Volunteers of America Chesapeake Co-located near a residential re-entry center, which helps ex-offenders reenter society and the workforce after serving federal prison sentences Provide job training and therapeutic opportunities for VOAC s residents CBO Financial, Inc. Plan, co-finance, and perform day-to-day operations at the farm Future Farm Technologies Inc. System design (vertical farming cultivation technology, LED lighting) Off-take agreements Ongoing Operations & Maintenance support 15
Cannabis Extraction, Processing, Breeding Division EQUIPMENT OVERVIEW Utilizing a patent-pending closed loop extraction system via a third-party Falling film technology in a safe, non-pressurized design using ethanol as solvent Low temperatures and short residence times preserve all the essential components including cannabinoids, terpenes, and flavonoids In production in California and expected to expand throughout 2018 High-throughput while maintaining quality (20 lbs. per hr.) PERFORMANCE OVERVIEW Load Capacity per 1 hour run: Run Time: Oil Yield: Est Yield per 1 hour run: 20 lbs Est Wholesale Price per Gram: $20 Potential Revenue: 1 hour (24 potential runs daily) 10% on average (15-20% potential) 908 grams 908g x $20 = $18,160 per hour 16
Cannabis Extraction, Processing, Breeding Division California California Cannabis Market California is the 6th largest economy in the world California to account for 40% of US cannabis market in 2017 (GreenWave Advisors) The cannabis market in California is expected to reach US$6.5 billion by 2020 (ArcView Research) Partners FFM Consulting Services, LLC ( FFM ), Future Farm s majority owned subsidiary, is under agreement with a California non-profit to manage the manufacture of cannabis oil using a non-volatile method in Huntington Park, CA (LA County). Extraction Facility Huntington Park The non-profit has secured a sublicense to legally manufacture cannabis oil using a nonvolatile method compliant under the Medical Marijuana Regulation And Safety Act ( MMRSA ). The state-of-the-art extraction facility produces highly pure cannabis concentrates to supply California s medical marijuana patients rapidly growing demand for both THC and CBD oil. Next Steps Increase inventory and capacity as California prepares to create a market for legal recreational cannabis Incorporate breeding lab as an extension of the Rahan partnership in Newfoundland 17
Cannabis Extraction, Processing, Breeding Division Newfoundland Partners & Location Future Farm and Rahan Meristem formed a JV to breed and propagate elite clones of cannabis. A world renowned global agro-biotechnology company incorporated in the State of Israel with more than 250 employees and over 40 years of experience in plant propagation and breeding Future Farm and CEPG Consulting & Design signed a LOI to house the R&D facility to grow elite cannabis strains in St. John s, Newfoundland. Cannabis Cloning Research Once licensed, the R&D facility will use state-of-the-art controlled environment equipment and techniques to create a research hub and create valuable IP. The JV will develop, own and utilize Rahan's proven and proprietary technology to mass-produce elite new strains of marijuana to fit various profiles required of its medical and legal use. The Partnership will use Future Farm s patented vertical farming technology and Scorpion LED grow lights to supply over 200,000 clones to the farm in 2018. Next Steps CEPG will apply for a dealer license from health Canada, which will enable R&D to begin on the growth of cannabis plants. Buildout of the existing building and construction of new 6,000 sq ft laboratory space. 18
Cannabis Retail Division Puerto Rico Joint Venture into Puerto Rico Dispensaries Future Farm formed a joint venture in Puerto Rico with TCG Investments, owners of the Clinica Verde brand of medical dispensaries, under the name FFPR, LLC Future Farm acquired a 40% ownership interest and a 50% economic interest in FFPR s 5 pre-qualified dispensary licenses for medicinal, operating under the brand Clinica Verde. The JV has signed the first of five leases for the Clinica Verde-branded dispensaries in the Condado neighborhood of San Juan, one of the island s most highly trafficked areas Ownership in the dispensaries provide the potential of consistent cash flow while contributing to the expansion of the medical cannabis industry, which is a key driver for the future economic development of Puerto Rico. Next Steps (Clinica Verde) Sign the remaining four leases to expand presence to ten stores in Puerto Rico Complete dispensary design and construction 19
Technology Division Augmented Reality The AR market is set to explode from a $10 billion market today to $120 billion in just the next two years. Future Farm has acquired the exclusive right to use AR E1, LLC's patented AR technology within the cannabis industry. Future Farm plans to spin off the AR business in the form of a stock dividend, expected to occur Q2 2018. AR technology to be used in dispensaries and in other partnerships Cryptocurrency Future Farm entered into a definitive agreement with New England CCS to acquire a 51% stake in FlipCoin FlipCoin is a cryptocurrency application and Point of Sale (POS) platform similar to Square FlipCoin is expected to be used in Future Farm s Cannabis operations LED Lighting & Growing Supplies Market: LED Horticulture Light Module Market at $395 Million in 2014 and Forecast To Reach $1.8 Billion by 2021 Growthstar brand of LED lights have been top rated for almost 5 years COB and MCOB ( Chip on Board and Multiple Chips on Board ) technologies provide 50% reduction in power use Scorpion LED COB Grow Lights passed Intertek s ETL certification process LED Lighting & Growing Supplies to be used in Future Farm s and 3 rd party operations Online Direct Sales: www.ledcanada.com www.cobgrowlights.com 20
Growth Opportunities & Business Development Future Farm has created a diversified portfolio through a broad geography of partnerships and will continue to form relationships to expedite growth. Focus areas for partnerships and acquisitions include: Cultivation Technology Cultivation Operations Dispensaries Cannabis Extraction Food & Beverage Companies Future Farm s management team is committed to provide economic value to its shareholders in 2018. 21
Financial Summary As of March 23, 2018 STOCK LISTING Public Since December 2014 Shares Outstanding 112,254,733 Management Ownership % 5% Share Price $0.60 CAD $0.468 USD Market Cap $67.35M CAD $52.53M USD Options 6,325,000 Warrants 15,410,115 Fully Diluted Shares Out 133,989,848 52 Week High-Low: $2.00 - $0.13 CAD ($1.66 - $0.10 USD) 22
Bill Gildea, Chairman & CEO Bill@futurefarmtech.com (617) 834-9467 Evan Gappelberg, Advisor Evan@futurefarmtech.com (631) 899-1273 23