December 8, 2017 – Vancouver, BC
New Age Farm Inc. (CSE:NF) (OTC:NWGFF) (FSE:ONF) (www.newagefarminc.com) (“New Age Farm” or the “Company”) announces it has entered into a letter of intent (the “LOI”) with two Washington State entities (the “Purchasers”) that will result in the sale of the Oroville facility and all related assets, tenant-grower leases, and fixtures upon the signing of a definitive agreement (the “Definitive Agreement”).
Further to the Company’s news releases of November 15, 2017 and December 7, 2017, the board of directors and management have accepted an LOI to sell all related assets, property, leases and fixtures to the Purchasers for consideration in cash and shares of approximately US $2.5 million. The parties are now engaged in the due diligence process in preparation for the sale of the Oroville facility. The proceeds from the sale of the Oroville facility will provide the Company with the resources to seek out and take advantage of and capitalize on business opportunities available in Canada and develop an Ecommerce site capable of exploiting related opportunities in Canada and the US.
Following the signing of the Definitive Agreement, the Purchasers will become the sole owners and operators of the Oroville facility. The Company’s Chief Executive Officer, Carman Parente, stated “This will allow New Age Farm to shift its focus and to pursue opportunities available in Canada, where the regulatory environment is more stable. The proposed purchase of Colorado based We Are Kured provides us with a turnkey, fully built out ecommerce platform that can be deployed both in Canada and the US, as business opportunities arise, for the sale of hemp and hemp related products, or other products as circumstances permit, allowing management to maximize shareholder value and reduce risk while maintaining business interests in both countries.”
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.