- Future Farm Technologies (CSE:FFT) and High Purity Natural Products have signed a letter of intent, agreeing to merge the companies
- The companies will sign a definitive Merger Agreement in the near future, formalising the amalgamation
- Future Farm has already provided High Purity with approximately C$169,000 in working capital loans and other forms of support
- Through the merger, High Purity will become a subsidiary of Future Farm, in exchange for 15 million common shares in Future Farm
- Future Farm Technologies (FFT) is up 14.29 per cent and is currently trading at four cents per share
Future Farm Technologies (CSE:FFT) and High Purity Natural Products have signed a letter of intent, agreeing to merge the companies.
High Purity is a white label and contract manufacturer of health and wellness products. The company uses organic and natural plant extracts, including hemp-derived CBD, for its nutraceutical and cosmetic products.
Recently, High Purity expanded its operations into hand sanitiser product lines, in light of high demand caused by COVID-19.
Prior to this agreement, Future Farm has already provided High Purity with strategic and financial resources to support its growth. To date, Future Farm has provided High Purity with approximately C$169,000 in working capital loans. The company also provided introductions to large, creditworthy customers, and other forms of support.
The parties will formalise the amalgamation by signing a definitive Merger Agreement in the near future.
Through the merger, Future Farm will acquire 100 per cent of High Purity’s outstanding membership units. Via a reverse triangular merger, a Future Farm subsidiary will amalgamate with High Purity.
At the end of the transaction, High Purity will become a wholly owned subsidiary of Future Farm. The consideration for the transaction will be 15 million common shares in Future Farm.
Future Farm’s CEO, Bill Gildea, said the company is excited to combine with High Purity.
“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,” he said.
High Purity’s founder and CEO, Mike Matton, also welcomed the merger.
“Merging with Future Farm will provide High Purity with access to incredible talent, as well as access to capital markets.
“Combining Future Farm’s expertise with High Purity’s rapidly growing business creates a powerhouse team,” he said.
Future Farm Technologies (FFT) is up 14.29 per cent and trading at four cents per share at 10:02am EDT.