May 7, 2018 – Vancouver, BC
New Age Farm Inc. (CSE:NF) (OTC:NWGFF) (FSE:ONF) (www.newagefarminc.com) (“New Age Farm” or the “Company”) wishes to provide clarification as to its revenue generated by the Langley property owned by its former subsidiary, NHS Industries Ltd. (“NHS”), and, more particularly, to explain that as of December 31, 2016, the effective date of the plan of arrangement between the Company and NHS (the “Arrangement”), the Company was no longer entitled to receive any revenue from NHS or the Langley property. Following the completion of the Arrangement, the Company deconsolidated the results of operations from NHS in its audited financial statements for the year ended December 31, 2016 with the comparative information for all quarters in the 2015 fiscal year being restated for presentation purposes (the “2016 Audited Financial Statements”). As a result of this, the 2016 Audited Financial Statements only disclosed a one-line item from NHS as net loss from discontinued operations. Therefore, as a result, the quarterly information from October 2015 to September 2017 should not have disclosed any revenue figures from NHS. However, the Company’s quarterly information for quarter ended December 31, 2015 did disclose the deconsolidated figures.
In completing this process of deconsolidation, the Company overlooked that in a section of its MD&A, under the Liquidity heading, that it had previously noted that the Company had a small regular source of income. This line should have been removed from subsequent MD&As following the deconsolidation of the two companies’ finances but through an error it was not removed by the time of the Company’s September 2017 financial statements.
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 has launched its first product, a fully loaded, 250 mg disposable terpene infused, hemp derived CBD vaporizing pen. The vape pens will be available in three variations: Sunshine (Sativa blend), Moonlight (Indica blend) and Anytime (hybrid blend). Please bookmark http://wearekured.com, 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.
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.