November 8, 2016 – Vancouver, BC
New Age Farm Inc. (CSE:NF) (OTC:NWGFF) (FSE:ONF) (www.newagefarminc.com) (“New Age Farm” or the “Company”) is pleased to announce that one of its licensed tenant-growers is preparing to harvest the first full crop to be grown at our Washington State Green Campuses. All New Age Farm’s tenant-growers hold Tier 2 or 3 producer and / or processor licenses issued by the Washington State Liquor and Cannabis Board. Each Tier 3 licensee can grow up to 30,000 square feet of plant canopy and each Tier 2 licensee can grow up to 10,000 square feet of plant canopy. The current tenant harvesting is a Tier 2, production only licensee. Crops have the potential to be harvested every 90 days and upon completion of the build outs currently underway, the Company’s tenant-growers will have the capacity to harvest up to 40,000 square feet of plants every 90 days.
Carman Parente, President and CEO of New Age Farm commented: “This is a truly significant milestone for us; this first harvest will generate revenues that will help us move our strategic plan forward. The new facilities will allow us to increase planting, get more tenant-grower operations up and running and generate income that will increase shareholder value. These are exciting times for the Company and our stakeholders.”
About New Age Farm
Through its Washington State subsidiary, New Age Farm owns two properties, one located in Sumas, WA, and the other in Oroville, WA, where it offers fully built out turnkey service operations to licensed I-502 tenant-growers who will lease the facilities for production and / or processing. With three leases already in place, operations in Washington State have begun and will expand further as the Company completes its build outs. 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.
Sales of marijuana products in Washington state have for the first time surpassed $200 million in a quarter. The News Tribune reports residents and visitors bought more marijuana than ever before in the second quarter of 2016, based on an analysis of purchase and tax records from two state agencies. In the first quarter of 2016 January, February and March people spent $54.8 million more on spirits than marijuana, which includes the cost of the products and its associated taxes. By the second quarter April, May and June that gap closed to nearly $37 million. Those amounts include taxes levied by the state on those products. Spirits sales do not include wine and beer. Marijuana sales include all cannabis products, but not paraphernalia. Marijuana sales in the second quarter of 2016 amounted to nearly $212 million. Spirits sales in the same period amounted to almost $249 million. In July, the state closed medical marijuana shops, making all sales go through licensed recreational marijuana storefronts. Sales at retail pot shops shot up by $66.6 million in the third quarter of the year, to $278.6 million. Washington voters legalized recreational marijuana in 2012. Earlier this month voters in California, Massachusetts and Nevada approved recreational pot. Colorado, Oregon and Alaska have also legalized recreational marijuana.
About the Washington I-502 Marijuana Market
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. A recent WSLCB commissioned report by the Rand organization suggests that there
are currently up to 650,000 recreational marijuana users in Washington State, worth approximately $1.25
– $1.5 Billion USD in annual sales.
Through its wholly-owned subsidiary, NHS Industries Ltd. (“NHS”), New Age owns a five and a half acre
greenhouse facility in the lower mainland of BC with a 48,000 square foot greenhouse facility. NHS is in
the process of formulating innovative proposals for small scale agricultural facilities for exploring multiple
avenues for cash flow processes. Anticipating Canadian federal government regulations regarding the
legalization of cannabis for recreational purposes is one avenue that NHS will be exploring. NHS also
intends to look at other high value crop possibilities such as hemp and its potential revenue generation.
Management’s intent is for NHS to achieve positive cash flow as expediently as possible, all the while
developing and maintaining multiple product income streams that will foster profitability, rather than
relying on a single market sector.
For further information about New Age Farm, please consult the Company’s profile on SEDAR at
On Behalf of the Board Of Directors
President and Chief Executive Officer
For Further Information Contact
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, 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
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registered, or an exemption from registration is relied upon.