February 26, 2018 – Vancouver, BC
New Age Farm Inc. (CSE:NF) (OTC:NWGFF) (FSE:ONF) (www.newagefarminc.com) (“New Age Farm” or the “Company”) The Company is pleased to provide this update to stakeholders on New Age Farm’s operations. As previously reported, due to the uncertain regulatory environment in the United States regarding cannabis, the Company is exploring avenues to move its operations away from the growing of cannabis in the US. In the meantime, the company is continuing its operations in Oroville, Sumas and Moses Lake. New Age Farm is building its newly acquired business, We Are Kured LLC, with the goal of focusing on the CBD side of the industry which does not face the same regulatory issues as recreational marijuana.
We Are Kured
In December 2017, the Company expanded into hemp derived Cannabidiol (“CBD”) when it acquired We Are Kured, LLC (“WAK”), an online CBD and lifestyle company.
WAK’s leadership 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 will be 100% THC free and will be available for purchase internationally. Unlike THC or tetrahydrocannabinol, the primary active ingredient in cannabis, CBD 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.
Since December, WAK has pushed its business plan forward, designing and debuting its CBD vaporizer pen, working on its online sales platform and partnering with a marketing firm to launch the first product. The website for online sales of WAK’s products is in the design testing phase and the Company expects WAK’s management to announce a launch date within the next few weeks.
The Company intends to capitalize on this aspect of the industry which it can develop and deploy on both sides of the border once marijuana is legalized in Canada. Once the full scope of the regulations on legalized marijuana are known in Canada later this year, the Company will bring together the resources required to make WAK a strong channel for the Company as it looks to a potentially integrated business model that will go from seed to sale to lifestyle accessories.
NHS Industries Ltd.
The Company’s former subsidiary, NHS Industries Ltd (“NHS”), was spun out in a plan of arrangement in 2017. Since that time, NHS submitted a non-offering prospectus to the British Columbia Securities Commission (“BCSC”). NHS has received its final ticket from the BCSC and is right now in the process of listing its common shares on the Canadian Securities Exchange. NHS will publish further news under its own name and symbol once the listing is approved in the coming weeks.
The Company owns the Oroville Agri-campus jointly with its 50/50 venture partner. Together the landlords (the “Landlords”) have one tenant-grower with a Tier 3 License currently situated at Oroville. The tenant-grower harvested its first crop at Oroville in early fall 2017. The crop was transported to the drying facility in Moses Lake and subsequently tested. Once tested, the results determine the ultimate disposition of the crop, whether it would be sold as bud, or pressed into oils, for example. The tenant-grower recently reported to the Landlords that the crop was pressed into oils as it fell below the quality standards required for it to be sold intact. The Landlords have invoiced the tenant-grower for rent and other costs and once the tenant-grower has sold the product, it will be responsible for paying the Landlords.
As part of the Company’s strategic plan to move its operations back into Canada and to disengage from its US operations, in December 2017 the Company entered into a letter of intent regarding the sale of the Oroville Agri-campus. The Company’s due diligence process is continuing, and New Age Farm will provide further updates as soon as possible.
New Age Farm is a 50% owner in the Sumas Agri-campus and the Company’s partner at Sumas is responsible for the build out, maintenance and day-to-day operations at the facility. One tenant-grower is in place at Sumas, under basically the same terms as the tenant-grower at Oroville. It has an initial small crop in place as it undertakes its entry into the business. The Company has no operational involvement in Sumas and will continue as a landlord with its equity partner for the time being.
Moses Lake Agri-campus
Moses Lake is operated by the Company’s venture partner where build out is underway. The Company is evaluating all of its assets, including Moses Lake, with the intention of maximizing financial returns on its US assets. The Company will provide further updates on the status of its LOI in Oroville and its other assets as information becomes available.
General Development of the Business
The Company completed its most recent financial year on December 31, 2017 and is pleased to enter this year’s audit with a healthy seven figure working capital balance and will be publishing the audited financials in accordance with regulatory requirements on or before the end of April 2018.
During the past several months the Company’s efforts have been focused on developing its strategy to bring its business back to Canada and to monetize its assets in the US. While these efforts are ongoing, it is important the Company be able to conduct its strategic initiatives in a manner that allows it to negotiate and execute on its plans without disclosing information that could impact such negotiations. This may mean that information is not available until such deliberations and negotiations reach a conclusion, at which time the Company will issue a news release to apprise stakeholders of material information in accordance with regulatory requirements.
The Company’s long-term strategy includes the expansion into the CBD hemp oil business, and the Company has received funds from the exercise of options and warrants over the last several months. Once the audited financial statements for the year ended December 31, 2017 have been completed and filed, shareholders will have the opportunity to review the Company’s strengthened working capital position. The company plans to continue to raise more funds to further its expansion in the CBD hemp oil business which includes potential acquisitions and integrating its business both vertically and horizontally.
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 its agri-campuses in Washington State. In November 2012, the Washington State Liquor and Cannabis Board (“WSLCB”) passed Initiative 502 (“I-502”). 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. New Age Farm provides innovative solutions for growers and processors in this burgeoning industry.
About We Are Kured, LLC
WAK is a wholly owned subsidiary of New Age Farm, acquired in December 2017. WAK is building an innovative online CBD and lifestyle company. WAK 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. WAK expects to launch its first product, a fully loaded, 250 mg disposable terpene infused, hemp derived CBD vaporizing pen shortly. The vape pens will be available in three variations: Sunshine (Sativa blend), Moonlight (Indica blend) and Anytime (hybrid blend). Please bookmark http://wearekured.com, where WAK is in the process of building out a full website where consumers will be able to learn more about the company and purchase its products.
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.