December 7, 2017 – Vancouver, BC
New Age Farm Inc. (CSE:NF) (OTC:NWGFF) (FSE:ONF) (www.newagefarminc.com) (“New Age Farm” or the “Company”) has entered into a letter of intent to acquire 100% of the Denver-based CBD company, We Are Kured LLC (“We Are Kured”). We Are Kured is an innovative online CBD and lifestyle company. The company has partnered with best in class hemp cultivators, edible manufacturers, cutting edge product formulators to develop, market and distribute multiple lines of CBD products including, but not limited to, CBD vaporizer pens, topicals, gel capsules and more. All of We Are Kured’s products are 100% THC free and will be available for purchase internationally. THC, or tetrahydrocannabinol, is the primary active ingredient in cannabis.
Under the terms of the letter of intent (the “LOI”), New Age Farm and We Are Kured will work toward a definitive agreement (the “Definitive Agreement”) expected to take place before the end of December 2017 wherein New Age Farm will acquire all the assets of We Are Kured in exchange for $1,150,000 payable in cash and shares.
We Are Kured is led by Benjamin Martch, an active cannabis marketing entrepreneur and leader. Mr. Martch has assembled a team of leaders that has each made his or her mark in their respective sectors ranging from cannabis, finance, retail and horticulture to professional sports. Together, We Are Kured’s team operates some of the world’s premier cannabis companies with operations in Colorado, Oregon, Massachusets, Maryland and California. We Are Kured intends to become an industry leader in the legal worldwide marketplace.
Unlike THC, CBD (short for Cannabidiol), is a non-psychoactive cannabinoid and does not result in any type of high and can be legally extracted from the hemp plant and consumed.
Earlier this year, Forbes reported that “hemp-derived cannabidiol (CBD) is projected to be a billion-dollar market in just three years, according to a new report by Brightfield Group. The data company estimates that hemp CBD sales have already hit $170 million in 2016 and a 55% compound annual growth rate over the next five years will cause the market to crack the billion-dollar mark”. Forbes further reported that, “Brightfield determined that 64.5% of the sales come through the online channel followed by 17.8% at smoke shops. Dispensaries were third, with 9% of the sales and health stores and doctor’s offices rounded out the top five.”
Benjamin Martch graduated from Colorado State University in 2007, majoring in Merchandising and Marketing. He is an industry leader in Marketing and Event Production as well as the Cannabis industry.
Since 2009, he has held multiple positions among dispensary groups throughout Colorado, including as General Manager of three Frosted Leaf dispensary locations. Subsequently, he became the Marketing Director at one of Denver’s original dispensaries, Lightshade. As Marketing Director of Lightshade, the store’s foot traffic increased significantly in less than five months. Mr. Martch also produced Denver’s first concert event based solely on cannabis named SMOKEDOWN with performances from Method Man and Redman following which he founded a digital marketing agency. His clientele includes many top companies. Mr. Martch is involved in all aspects of the cannabis industry including as an organizer of events and festivals. More details of his involvement in events can be found at Mr. Martch’s LinkedIn profile at https://www.linkedin.com/in/benmartch/ .
Mr Carman Parente, president and CEO of New Age Farm commented, “We are very pleased at the immense opportunity We Are Kured will bring to New Age Farm to enter into a whole new sector of the cannabis industry. This will provide our stakeholders with another potential revenue stream in an established and growing industry. With his cannabis, event production and business development history in Colorado, Oregon and California we are excited to have a charismatic leader like Ben Martch join our team.”
All amounts cited in this news release are in Canadian dollars. This transaction is subject, among others, to the approval of the Canadian Securities Exchange, regulators and the Company’s board of directors.
About New Age Farm
New Age Farm is an agricultural services company offering unique turnkey growing infrastructure and services for licensed growers and processors of luxury marijuana crops at three agri-campuses in Washington State.
In November 2012, the Washington State Liquor and Cannabis Board (“WSLCB”) passed Initiative 502 (“I-502”) pursuant to a vote by the people of the State of Washington. I-502 authorized the WSLCB to regulate and tax recreational marijuana products for persons over twenty-one years of age and thereby created a new industry for the growing, processing and selling of Washington State-regulated recreational marijuana products in compliance with state regulatory requirements,
New Age Farm’s facilities feature 24-hour security that enhances the safety and security of the community, our tenant-growers and their operations. All New Age Farm’s tenant-growers hold either Tier 2 or Tier 3 licenses allowing them to produce and / or process marijuana for sale at wholesale to marijuana processor licensees and to other marijuana producer licensees. A Tier 3 license allows for between ten thousand square feet and thirty thousand square feet of dedicated plant canopy while Tier 2 licensees can have up to ten thousand square feet of dedicated plant canopy. Revenue is generated on a base lease rate and the level of service that the tenant-grower requires for its production and / or its processing needs.
For further information about New Age Farm, please consult the Company’s profile on SEDAR at www.sedar.com.
On Behalf of the Board Of Directors
President and Chief Executive Officer
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The Canadian Securities Exchange has neither approved nor disapproved the contents of this news release and accepts no responsibility for the adequacy or accuracy hereof.
This news release contains forward-looking statements, which relate to future events or future performance and reflect management’s current expectations and assumptions. Such forward-looking statements reflect management’s current beliefs and are based on assumptions made by and information currently available to the Company. Readers are cautioned that these forward looking statements are neither promises nor guarantees, and are subject to risks and uncertainties that may cause future results to differ materially from those expected including, but not limited to completion of planned improvements at both the Canadian and US sites on schedule and on budget, the availability of financing needed to complete the Company’s planned improvements on commercially reasonable terms, planned occupancy by the tenant-growers, commencement of operations, differences in yield on expected harvests, delays in obtaining statutory approval for marijuana production plans, issues that may arise throughout the grow period, outdoor crops affected by weather, the ability to mitigate the risk of loss through appropriate insurance policies, and the risks presented by federal statutes that may contradict local and state legislation respecting legalized marijuana. These forward-looking statements are made as of the date hereof and the Company does not assume any obligation to update or revise them to reflect new events or circumstances save as required under applicable securities legislation. This news release does not constitute an offer to sell securities and the Company is not soliciting an offer to buy securities in any jurisdiction in which such offer, solicitation or sale would be unlawful prior to registration or qualification under the securities laws of such jurisdiction.
This news release does not constitute an offer of securities for sale in the United States. These securities have not and will not be registered under United States Securities Act of 1933, as amended, or any state securities laws and may not be offered or sold in the United States or to a U.S. Person unless so registered, or an exemption from registration is relied upon.