New Age Farm announces the signing of a letter of intent between its Washington State subsidiary, New Age Farm Washington, and CannaAgra to secure three additional tenant growers, along with a lease to own option on 11 acres of industrial land in Moses Lake, WA.
Under the terms of the LOI, NAF Washington and CannaAgra will form a 50/50 joint partnership corporation in Washington State, CannaUsa that will hold the lease on the 11 acres of industrial land in Moses Lake, WA. This will increase the Company’s Washington State property holdings to three separate agri-campuses in Sumas, Oroville and Moses Lake. In addition, CannaAgra will bring three Tier 3 Production/Processing licensees to Newco, and these licensees will become the Company’s newest tenant-growers. The Company expects to enter into a definitive agreement with CannaAgra within the next couple weeks, upon completion of due diligence.
CannaUsa will build out and operate greenhouse facilities on the Moses Lake Property that will accommodate New Age Farm’s tenant-growers for year round operations. The Company’s current strategy calls for outdoor planting to begin in the next 120 days as growing conditions permit, followed by a conversion to complete greenhouse operations by the fall of 2017, or as soon as the greenhouse facilities are ready.
On completion of the Moses Lake agri-campus, New Age will have in excess of 250,000 square feet of canopy growing space available to its tenant-growers at its three Washington state locations. The Moses Lake agri-campus will be structured in such a manner that it will allow for a total growing capacity of approximately 170,000 square feet of canopy space – this means up to five Tier 3 tenant-growers and one additional Tier 2 tenant-grower can be housed at the facility.
Carman Parente commented, “When at full operating capacity, these additional Tier 3 tenant-growers at Moses Lake will have the capacity to generate between $6 and $8 million in gross revenues per month (USD). With our turnkey tenant-grower model, where our clients pay base rent and fees for our specialized services such as the expertise of our master growers, our storage, processing and production capabilities, New Age Farm is positioned to begin generating significant income over the next year.”
Additional information regarding the LOI and the proposed definitive agreement will be provided upon completion of each party’s respective due diligence, board and regulatory approval. The Company may pay a finder’s fee in accordance with CSE policies.
For more information:
New Age Farm
604-889-5200
info@newagefarminc.com
newagefarminc.com
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