future farm technologies inc. future farm technologies inc. strong pipeline should help generate...

Future Farm Technologies Inc.

(CSE: FFT, OTCQB: FFRMF)

September 6, 2017

Near-Term U.S. Cannabis Producer

Future Farm Technologies Inc. (CSE: FFT, OTCQB: FFRMF) (“Future Farm” or “the Company”) develops and acquires technologies in the Controlled Environment Agriculture (CEA) market for production of cannabis and various non-medical plants. The Company holds a worldwide license to use a patented vertical farming technology, which generates 100 times more yield compared to conventional farming methods. The Company is also in the business of extracting cannabis oil. Currently, Future Farm also generates revenue by selling light-emitting diode (LED) lightings through online portals COBgrowthlights.com and LEDCanada.com. COBGrowlights.com supplies LED lightings for greenhouses and indoor cultivation for consumers in the US and Canada, and LEDCanada.com supplies commercial, retail and agricultural LED lightings to consumers based in Canada. Future Farm’s main focus is to grow its footprint throughout the United States by obtaining cultivation and extraction licenses in geographies including, but not limited to, California, Florida, Maryland and Rhode Island while utilizing its technology and expertise to become one of the leaders in the growing Cannabis market.

Investment Rationale Diversified businesses boost prospects of future top-line growth Future Farm has three key business divisions: 1) Cultivation/Vertical Farming Technology; 2) Cannabis Extraction; and 3) Commercial Lighting (LED lighting). 1) The Cultivation Technology division positions the Company as an emerging leader in the Controlled Environment Agriculture (CEA) market. The Company’s vertical farming technology requires minimum resources and returns maximum yield. Future Farm’s flagship CEA project located in Baltimore will cultivate fresh food. 2) The Company’s Cannabis Extraction division has projects in California and Florida. Future Farm will use closed loop liquid phase oil extraction equipment at its California oil extraction facility. With a $20 per gram sales price assumption, on an hourly basis, the Company’s oil extraction equipment is capable of loading 20lbs of cannabis plants, yielding 10% of oil on average (or extracting 908-grams of oil), therefore, generating revenues of approximately $18,160 per hour. Recently, the Company successfully extracted oil from the first batch of Cannabidiol (CBD) using organic grape alcohol, which would be used for medicinal purposes. 3) Future Farm already generates revenue from its Commercial Lighting division, which sells LED and other products through two online portals, COBGrowthlights.com and LEDCanada.com. During the three months ended May 31, 2017, the Company generated $40,905 from the sale of LED lights. Experienced and qualified management team Future Farm’s well-qualified and experienced management team should help the Company achieve its outlined business strategies. Mr. William Gildea is the Chairman and Chief Executive Officer (CEO) of the Company. Mr. Gildea has more than 20 years of experience in handling various environmental businesses and projects. He also has experience in the area of environmental insurance. Mr. John Sweeney is the Chief Operating Officer (COO) of the Company and has more than 16 years of experience in the field of cGMP (current Good Manufacturing Practices) coming from companies including Pfizer, Wyeth, Genzyme and most recently as Vice President of Operations at Tilray, a 60,000 square foot federally licensed Canadian medical cannabis operation on Vancouver Island. Mr. Scott McDermid is a director and manages the Company’s LED segment. Future Farm has also created a Cannabis Advisory Board (CAB), which supports the Company in making decisions related to the cannabis market. Mr. Sweeney is the Chairman of the Cannabis Advisory Board. Mr. Chris Lesh is a member of the Company’s CAB and has over 10 years of expertise in the area of cannabis cultivation in Washington State. Mr. Lesh was the lead cultivator at Tilray.

Price (as of September 5, 2017): CAD $0.19

Beta: 2.74

Price/Book: 7.4

Debt/Equity Ratio: N/A

Listed Exchange: CSE, OTCQB

16,000

1,016,000

2,016,000

3,016,000

4,016,000

5,016,000

6,016,000

$0.00

$0.10

$0.20

$0.30

$0.40

$0.50

$0.60

(USD) Source: Google finance

Recent News 24-Aug-17: Future Farm to Double Size and Ramp Up

Baltimore Vertical Farming Project with Second Location

18-Aug-17: Future Farm extracted its first batch of

Cannabidiol (CBD) using organic grape alcohol at the

Huntington Park oil extraction facility

15-Aug-17: Entered an agreement with Veteran’s Capital

Corp, a specialty finance company, for a $500,000 line of

credit

08-Jun-17: Future Farm appointed Mr. Scott McDermid to

manage and build its LED Canada division

01-Jun-17: Launched the updated e-commerce website of

LEDCanada.com

26-May-17: Signed license agreement with The Hampton

Chocolate Factory, LLC to launch “Hamptons Reserve”, a

premiere upscale cannabis brand.

23-May-17: Board of Directors approved application to up

list from OTCQB to OTCQX International.

10-May17: Installed cannabis oil extraction equipment at

the Company's California extraction facility.

02-May-17: Received a bank term sheet of $2.67 million at

prime plus 2% in order to acquire a 10-acre functioning

greenhouse in Florida.

18-Apr-17: Sold out of its scorpion grow lights and

received ETL certification.

.

Shares Outstanding: 90.41 million Market Cap: $17.1 million 52 Week High: $0.63

52 Week Low: $0.11 Note: All $ symbols represent Canadian dollars (CAD) unless otherwise specified.

www.RBMILESTONE.com

http://www.rbmilestone.com/

2


Strong pipeline should help generate positive cash flow in 1Q18 The Company has a strong pipeline of projects and has established strategic milestones to successfully maximize opportunities in the cannabis industry. The Company’s California cannabis oil extraction and cultivation facility is in the operational stage and should soon commence harvesting. The Company also has been successful in arranging funds for acquiring a Florida cannabis project. Future Farm’s Baltimore CEA vertical farming project also has preliminary arrangements in place. The Company has planned joint ventures to cultivate cannabis legally in the US and Canada, and plans to collaborate with cannabis growers and distributors with legal permits. It is also expected to commercialize its LED grow lights technology to various cannabis farms. As a result, the Company should generate a positive cash flow in 1Q18.

Legalization of cannabis usage boosts market demand Cannabis, once a banned psychoactive drug, now has rapidly growing acceptance in the US market due to its medicinal value. As of today, cannabis usage has been legalized in 29 states and the District of Columbia (where approximately 59.3% of the US population resides). Further, a few more states are contemplating legalization of cannabis, which is expected to add an additional US$7 to US$8 billion to market demand. Moreover, legalizations have also driven by factors such as FDA (Food and Drug Administration) approval of cannabis-based drugs and research studies (or trials) carried out in the medicinal cannabis space. Currently, two cannabis based (specifically, Tetrahydrocannabinol - a compound present in cannabis) drugs (Dronabinol and Nabilone) have been approved by the FDA, and one more drug (for epilepsy treatment in children) is in the clinical trial stage. Further, additional research studies and FDA approvals could increase demand for legalized cannabis; which is well poised to drive the growth of the cannabis market from US$6.5 billion in 2016 to US$30.3 billion in 2021 (a 22.46% CAGR). Specialty market segments such as CEA and automotive and a focus on energy savings should drive LED industry growth In recent years, LED lightings have found applications in Controlled Environment Agriculture (CEA) market segments such as horticulture and vertical farming. LED could provide lighting in a various spectrum, which could reduce plant growth cycles and increase production. This should increase the use of LEDs in the CEA segment, compared to conventional lighting sources. The CEA market is considered as the future of agriculture since a growing world population and continued urbanization have greatly reduced cultivable land. Hence, the growth in the CEA market should, in turn, drive demand and growth of the LED lighting segment. Moreover, the International Energy Agency (IEA) estimates that electricity consumption from lighting has increased significantly, primarily due to conventional lighting sources. Usage of energy efficient alternatives like LEDs in the lighting segment could greatly reduce consumption. In addition, government policies such as the EU green paper, China’s policy to phase out incandescent lamps, World Bank’s “Lighting Africa Program” and India’s move to retrofit its street lights with LEDs, should keep the global demand for LEDs at an uptrend. LED's ability to withstand shock has also enabled it to be widely used in the automotive industry. All these factors should drive the growth of the LED industry at a CAGR of about 18.43% from 2016 to 2020, as estimated by the “Global Automotive Lighting market 2016-2020” report published by Technavio.

Patented vertical farming technology - critical to today's declining farm yields In May 2016, Future Farm secured a worldwide license to use TerraSphere’s patented vertical farming technology. This technology has the capacity to produce 100 times the yield produced by traditional farming methods. It can also be customized specific to clients' needs, can reduce food miles by 30 times, requires limited usage of water and abstains from using any kind of chemical pesticides. Further, the technology can produce plants year-around in any climatic condition and has a lower environmental footprint. Such a unique, eco-friendly and cost-effective farming technology should support Future Farm’s vision of reducing the global food supply shortage.

Company Overview

Business Future Farm has three key business segments: 1) Cultivation/Vertical Farming technology; 2) Cannabis Extraction; and 3) Commercial Lighting (LED lighting). In the Cultivation/Vertical Farming technology segment, the Company develops and acquires technologies in the Controlled Environment Agriculture (CEA) market to produce cannabis and other plants. In the Cannabis extraction division, the Company’s subsidiary FFM Consulting Services, LLC manages an extraction facility, as well as a separate cultivation facility, for a California-based non-profit company. The Company’s LED lighting segment manufactures and supplies LED lights through online portals for commercial, retail, residential and agriculture usage. The Company is focused on growing its business in California, Florida, Maryland and Rhode Island.

Key Business Segments

1) Cultivation/Vertical Farming Technology Division Future Farm’s Cultivation/Vertical Farming technology segment enables the Company to establish a strong foothold in the Controlled Environment Agriculture (CEA) market to produce different types of plants, specifically cannabis. According to the New York State Energy Research and Development Authority (NYSERDA), CEA is an amalgamation of engineering, plant science and a technology-controlled greenhouse, which optimizes the growth of a plant, its quality and thereby increasing its productivity. Additionally, Future Farm will provide turnkey solutions for growing cannabis, along with capital, which is required to start and stabilize operations. The Company may also provide equipment sub-leases to individual growers.

3


Vertical Farming Technology - Solution to global food shortage The Company acquired a license for worldwide rights in a vertical farming technology from TerraSphere Systems, LLC (“TerraSphere”), a wholly-owned subsidiary company to Future Farm which provides vertical farming technology solutions. This technology requires minimum land, water and energy, and is adaptable to any location and climate with year-round crop production. Future Farm will pay 10% royalty fees to TerraSphere upon recovering its acquisition cost. The technology can generate 100 times more yield compared to traditional ways of farming and 10 times greater yield compared to greenhouse systems. Exhibit 1 shows the benefits of Future Farm’s vertical farming technology.

Exhibit 1: Benefits of using Future Farm’s vertical farming technology

Source: Company presentation

The Company’s vertical farming technology can be customized and additional features can be installed to existing systems in any space. Since this technology can be used in any area, it reduces the burden of bulk transportation of the produce and lessens food miles by up to 30 times. The technology consists of individually programmed rooms, which are automatic, driven by software and sensitive to environmental issues. The Company’s vertical farming technology requires 90% less water compared to traditional farming methods. The technology is eco-friendly because it eliminates the usage of fertilizers, chemical pesticides and herbicides. Compared to a traditional greenhouse system, the Company’s vertical farming technology requires limited space. The technology also has the capacity to produce year-round in any climatic condition. The plants grown using this technology are stacked in vertical trays with exposure to an exact amount of light. These plants are also provided accurate irrigation, as water is supplied through an injection system. The water used for irrigation is recycled by a closed loop system, which avoids wastage. The plants are then grown and harvested in a chilled atmosphere, which eliminates the chances of degradation.

2) Cannabis Extraction Division - Fastest growing segment in the cannabis market The Company is actively developing its cannabis farm and oil extraction facilities in California and Florida. Through these facilities Future Farm plans to strengthen its cannabis market position in California and Florida. We now discuss the recent developments in the extraction projects/facilities in California along with a brief overview of the extraction technology California cannabis oil extraction projects - Recent Developments As per ArcView Research, California’s cannabis market is projected to reach US$ 6.5 billion by 2020. Further, California is expected to account for 40% of the US cannabis market in 2017 (as per GreenWave Advisor). On February 21, 2017, the Company’s majority owned subsidiary, FFM Consulting Services, LLC, (“FFM”) a California limited liability company, entered into an agreement with a California-based non-profit company. Future Farm’s subsidiary will manage the cannabis oil extraction facility of the non-profit company in Huntington Park, California. The extraction facility holds a sublicense to produce cannabis oil legally in south-eastern Los Angeles County, California. The cannabis concentrates produced in the facility would cater to the growing demand for such oils in California’s cannabis market. On March 15, 2017, FFM signed a management agreement with a California-based non-profit company to manage, operate and expand a 17,000-square foot cannabis cultivation facility of the non-profit company in Riverside County, California. This cultivation facility is expected to produce premium quality cannabis, which will be used as feedstock for the oil extraction facility. Future Farm expects the cultivation facility to become fully functional after completing the facility’s modification in three months and shortly thereafter commence its first harvest, so by August 2017. The Company is expected to use the patented vertical farming technology and COB LED grow lights to produce high-quality cannabis to then be used for oil extraction purposes. Therefore, the Company is well positioned to tap the large cannabis market in California through this new entry.

4


Extraction Equipment uses unique oil extraction technology On March 22, 2017, FFM acquired a cannabis oil extraction machine for the California oil extraction facility project. The equipment uses a patent-pending closed loop liquid-liquid phase system to extract cannabis oil with minimum maintenance and labor requirements. The system uses falling film technology (where the process fluid evaporates outside of horizontal or vertical tubes and flows downwards by gravity as a continuous film) in a safe, non-pressurized design and utilizes alcohol as a solvent. Since the system operates at low temperature with short residence time, most of the essential components of cannabis such as cannabinoids, terpenes, and flavonoids are preserved. On May 10, 2017, the equipment was successfully installed at the California oil extraction project facility. Exhibit 2 shows the extraction technology system.

Exhibit 2: Extraction Technology System


If a maximum pressure of 2,000 pounds per square inch (psi) is applied, the extraction model provides a wide range of extraction limits, with a balanced operational efficiency. Exhibit 3 shows the performance overview and returns on investment (ROI) of the system. On an hourly basis, the Company’s oil extraction equipment is capable of loading 20lbs of cannabis plants and yield 10% of oil on average, or extracting 908-grams of oil. Future Farm assumes it could sell oil at an average price of $20 per gram due to current market price trends, which would therefore generate revenues of approximately $18,160 per hour. This extraction equipment is capable of running potentially 24-hours a day, which could therefore result in some healthy revenues especially when at full capacity.

Exhibit 3: Performance overview and ROI of extraction technology system

Parameters

Capacity 20 pounds

Run time 1 hour

Oil Yield 10%

Yield / run 908 grams

Yield / day 21,792 grams

Estimated Revenues / hour* US$18,160

Max runs 24 potential

runs per day

*At full capacity & at an assumed sales price of $20/g Source: Company presentation and news

5


Current status Post installation of the extraction equipment, Future Farm has been actively extracting oil at the Huntington Park facility. The Company also has been using different kinds of cannabis strains and various types of solvents to extract high quality cannabis oil. To date, the Company has successfully procured more than 250 pounds of high quality phytocannabinoid tetrahydrocannabinol (THC) and Cannabidiol (CBD) trim materials from various organic cannabis producers in Northern California. The procured cannabis trim materials are thoroughly tested to ensure the absence of any pesticides and microbiological existence. Recently, the Company extracted oil using the first batch of CBD strains using organic grape alcohol. This high quality, pure and potent CBD cannabis oil is an effective medicinal product. Future strategy By early September 2017, the Company will complete multiple purchase orders for cannabis whole flower for oil extraction purposes.

3) Commercial Lighting (LED Lighting) - Cost effective, reduces 50% of power usage Future Farm’s LED lighting segment is already well-established and generates revenue today. The Company’s LED lighting segment manufactures and distributes LED lights through online direct sales for commercial, residential, retail and agriculture purposes. The Company sells LED lights through its two online retail portals such as COBgrowlights.com and LEDCanada.com. The Company generated $40,905 from the sale of LED lights for the three months ended May 31, 2017.

We now discuss the Company’s two LED online portals.

COB Grow Lights Chip on Board (COB) LEDs are the low-cost version of LED lights used in horticulture. COB LEDs are made of multi-LED chips packed together as one light module and it lights up as a lighting panel. The placement of LED chips and packaging style provide better light distribution. COB LEDs are cost effective for producers and consumers as they are simple to manufacture. The Company sells COB LEDs under the brand name GrowthStar through its online retail portal COBgrowlights.com within the USA and Canada. Exhibit 4 shows XGEN 400W one of the products sold on COBgrowlights.com. This product is used by cultivators to grow medicinal herbs, and it provides higher yield per watt compared to High Pressure Sodium (HPS) lighting.

Exhibit 4: XGEN 400W COB LED Grow Light

Source: COBGrowlights.com

Current Status On April 19, 2017, the Company’s Scorpion LED COB grow lights passed Intertek’s ETL certification process. Intertek is one of the world’s leading inspection, testing and certification company. Intertek’s ETL certification is according to the safety standard of North America. Post this certification, the Company is slated to sell Scorpion LED COB grow lights in North America. LED Canada The Company through its online portal (LEDCanada.com) sells LED lights in Canada for commercial, residential, retail and horticulture use. On February 12, 2016, the Company acquired LED assets from Ultimate Energy Savings Canada Inc., which included online retail portal LEDCanada.com. The Company issued 1.5 million common shares and paid $60,000 to complete the acquisition. Exhibit 5 shows the Growthstar Spider 6X MCOB LED Grow light sold on LEDCanada.com.

6


Exhibit 5: GrowthStar Spider 6X MCOB LED Grow Light

Source: LEDCanada.com

Current status of LED Canada On December 6, 2016, the Company’s LED segment LED Canada received its first huge purchase order to date from a 40-year old Canada-based chain of stores. The Company is expected to generate $1 million in business from this customer.

Other technologies - Additional revenue streams Hydroponic Plant Feeding System (Closed Loop Feeding System) On July 12, 2016, the Company completed production design for its hydroponic plant feeding system. Earlier, on February 25, 2016, Future Farm acquired a proprietary hydroponic plant feeding system from Efficacy Technologies Inc. (“Efficacy”). The system, developed by Efficacy, is a closed loop design, which features an Opti-temp Root Cooling™ technology, Nutri-mist™ Feeding technology and EasyLift™- a plant maintenance technology. The Company plans to commercialize this system and market it together with their LED lighting segment. The system is applicable to all agricultural farming techniques such as home growers, greenhouse and vertical farming companies.

Mobile Application On October 13, 2016, Future Farm established a new mobile gaming division, namely 420AppGaming.com, by acquiring a revenue-generating App portfolio and source code. Through this acquisition, the Company brings in an experienced team of app developers who can elevate the Company’s position in mobile application technology. These seasoned app developers have developed over 500 mobile apps. The Company plans to roll out 420 themed games, which is expected to generate consistent monthly revenue through In-App Purchases (IAP) and ad impressions. The App Portfolio’s trailing 12-month EBITDA was US$139,000 or $183,000 CAD. More importantly, along with developing games, the Company plans to introduce utility apps specializing in the cannabis market.

Company Projects

Main/Flagship Projects

California Projects (Tapping a market worth USD$6.5 billion by 2020) On March 15, 2017, Future Farm’s majority-owned subsidiary, FFM Consulting Services, LLC (“FFM”), a California limited liability company, signed a management agreement with a California-based non-profit company. FFM will manage, operate and expand a 17,000 square foot cannabis cultivation facility of the non-profit company in Riverside County, California. This cultivation facility is expected to produce premium quality cannabis, which will be used as feedstock for the oil extraction facility of the non-profit company. Future Farm expects the cultivation facility to become fully functional after completing the facility’s modification in three months and shortly thereafter commence its first harvest, so by June 2017. The Company is expected to use the patented vertical farming technology and COB LED grow lights to produce high-quality cannabis to then be used for oil extraction purposes. Therefore, the Company is well positioned to tap the large cannabis market in California through this new entry. We note that according to ArcView Research, the California cannabis market is expected to reach US$6.5 billion by 2020. As discussed prior, in the Cannabis Extraction segment, Future Farm has made significant recent strides towards oil extraction facilities in California. Below is a timeline for its California projects, based on the most recent Company presentation. Timeline of the Company’s California cannabis oil extraction and cultivation division As shown in Exhibit 6, the Company will start generating revenue (Sep-17) from its Cannabis oil extraction and cultivation division since it has already commenced initial oil production.

7


Exhibit 6: Timeline of the Company’s cannabis oil extraction & cultivation division

Timeline Cultivation Extraction

Corporate Partnership Agreements in place

Siting / Permitting

Funding

Site Construction

Operations

First Harvest / Oil Production Aug-17

Revenue Sep-17 Sep-17

Confirm Off-Take Partners TBD TBD


Florida Projects (35 acres of cannabis farmland) Florida is one of the biggest markets of medical cannabis in North America. The Company has two projects in a cannabis zoned location in Apopka and Redland, Florida (near Orlando). The products from these projects will help strengthen the Company’s position in the Florida cannabis market. Apopka Project- 20 acre of cannabis farm On May 2, 2017, the Company announced that its Florida-based partner received a $2.67 million bank term sheet at prime plus 2% in order to acquire a 10-acre functioning greenhouse in Apopka, Florida. The Company also has an option to acquire an additional 10-acres area. This greenhouse project falls under the cannabis zoned area and is the Company’s first project in the Florida market. The project is also in close proximity to Orlando. Over the past year, this project generated over US$2.6 million in revenue with EBITDA of over $400,000 by selling ornamental plants, which is expected to continue until Amendment 2 allows for the property to be converted into a cannabis growing facility. Once fully licensed and operational, the Company expects this facility to reach the capacity to generate seven figures in revenue per month due to the higher sales price of cannabis. In the interim, the Company will look to utilize its CEA technology to quadruple the current ornamental plant yields, thereby increasing both profit and revenues. Exhibit 7 shows the Company’s Greenhouse project site in Florida.

Exhibit 7: Future Farm’s Greenhouse project site in Florida


Redland Project The Company’s project in Redland, Florida is spread across 15 acres of land. The area is located within Miami-Dade County, Florida. The Biscayne National Park is to the east of the Redland project area and the Everglades National Park lies to the west. Further, Redland is considered a suburb of Miami and is known for its rich cultivation land. Exhibit 8 shows the location of the Redland project.

8


Exhibit 8: The Redland Project geographic location


Future Strategy of the Florida projects On November 8, 2016, voters in Florida approved the Florida Medical Cannabis Legalization Initiative, or Amendment 2, in the general election. According to Amendment 2, Florida’s Department of Health would regulate cannabis production and distribution in cannabis treatment centers. The Department of Health would also issue identification cards to patients and caregivers. The Company stands to benefit from this amendment as both the projects are located in the cannabis zone of Florida enabling the Company to receive the appropriate licenses to grow cannabis. Once Future Farm receives its licenses and all the necessary approvals, the Company has the potential to grow cannabis on the combined 35 acres of land. The Company also plans to obtain licenses of cannabis oil extraction for both the projects.

Other Projects

Baltimore Project (Produce Farms)

The Company has two vertical farming technology projects in Baltimore, Maryland. On December 8, 2016, the Company entered into a letter of intent (LOI) with Volunteers of America Chesapeake (VOAC), one of the largest non-profit organizations for human services, to lease 25,000 square feet of commercial land in Baltimore. The project is unique as it is an amalgamation of LED lighting and vertical farming technology. Further, the Company has joined hands with CBO Financial Inc., a company offering financial consultation, to develop and operate the project area. CBO Financial acts as the financial advisor of the Company and will arrange $5 million through the New Market Tax Credits (NMTC) program, which offers incentives to companies through tax credits for their investment in low-income communities of the US. On August 24, 2017, Future Farm announced the completion of the first facility’s design and budget, which allowed the Company to expand by bringing on a second location. This will double the size of the Baltimore project to almost 50,000-sq ft and speed up the development. The second site is more accommodating to the Company’s controlled environment agriculture (“CEA”) technology requirements and requires less construction build-out. Therefore, the Company expects the second location will be operational sooner than the original location turning it into Phase 1 of the Baltimore project. The primary objectives of both farms remain the same: establish economical and environmentally friendly vertical farms; provide job training opportunities (specifically to the VOA’s reentry program for ex-offenders in Baltimore, MD) as well as to the local community; provide therapeutic programs, which will be expanded to the disabled population; support entrepreneurship development; and establish a model for replication at other reentry and social services facilities. Both Baltimore locations will look to distribute high value healthy produce to local area retail stores, restaurants, institutional non-profits and other buyers in the area.

Rhode Island Project (North Kingstown) (Produce & Cannabis Farm)

The Company’s Rhode Island farm is located in North Kingstown, which is spread across 20,000 square feet. In this farm, the Company plans to grow various types of leafy vegetables including medicinal marijuana. Through this farm the Company intends to establish themselves as a leader in indoor CEA technology. On August 30, 2016, the Company acquired the Rhode Island farm, by entering into a three-year lease with an extension option. On November 2, 2016, the Company appointed Mr. Jim Coull to start the designing and construction work of Rhode Island farm. The Company plans to sell its produce from the Rhode Island project to local residents and also to the entire Northeastern market, where there is robust demand. The Rhode Island farm also has necessary laws in place to produce medical marijuana.

9


Project Timelines & Milestones We now discuss the Company’s diversified pipeline which would help Future Farm to attain commercial success by catering in an underserved area and maximize opportunities in the cannabis market.

Project Timelines As discussed earlier, the Company’s California cannabis cultivation and extraction projects are in the operational stage as they have secured all the necessary partnership agreements, permits and funds in place. Both the cannabis extraction and cultivation facilities have started operations and expect to commence initiate first harvest soon. Per Company management, the California extraction project is expected to reach first sales in September 2017. The Company’s two Florida cannabis projects are in the initial stages as seen in Exhibit 9. Future Farm is also in the process of solidifying funding to officially acquire Apopka project, which would therefore bring in revenues immediately to the Company given existing operations at the 10-acre greenhouse project. The Company’s Baltimore project is currently under development. The focus will be to showcase this operation as the Company’s flagship produce farm. The Baltimore project has all of the preliminary arrangements in place.

Exhibit 9: Future Farm’s Projects' Timelines


Milestones - Steps toward positive cash flow Future Farm has successfully listed its stock in the US OTC market. The Company has also been acquiring strategic revenue generating projects. In the future, the Company plans to fund its Florida projects through secured debt financing for uninterrupted operations. Future Farm also plans to engage in a joint venture with a legal medical grower or distributor for selling its cannabis produced from its farms. The Company also has plans for licensed production joint ventures in Canada and the US. Exhibit 10 shows the Company’s recently completed and upcoming milestones.

Exhibit 10: Future Farm’s milestones

Milestones Completion

Close 300K in Seed Round Funding (Completed Q3-16)

Dual list on the US OTCQB (Completed Q4-16)

Accretive Acquisitions

Closed oversubscribed $560,000 round at a share price of $0.25 CAD (Completed Q4-16)

Secured California Cannabis Extraction License

Established Cannabis Advisory Board

Closed oversubscribed $2,071,174 round at a share price of $0.27 CAD (Completed Q1-17)

Secure debt financing to fund Florida farms and NMTC for produce farms 2017

JV with a Medicinal Permitted Grower/Distributor 2017

Commercialize LED technology to several Cannabis farms 2017

JV Production Venture in Canada 2017

JV Licensed Production Ventures in US 2017

Become cash flow positive Q1-2018

Source: Company presentation and filings

10


Company Timeline and Key Events

Exhibit 11 below shows the reverse chronological timeline of the evolution of Future Farm, summarizing some key annual events for the Company since 2007.

Exhibit 11: Timeline summarizing significant annual events since 2007

Dates Events

24-Aug-17 Future Farm to Double Size and Ramp Up Baltimore Vertical Farming Project with Second Location

18-Aug-17 Future Farm extracted first batch of Cannabidiol (CBD) using organic grape alcohol at the Huntington Park oil extraction facility

15-Aug-17 Entered an agreement with Veteran’s Capital Corp, a specialty finance company for $500,000 line of credit

8-Jun-17 Appointed Mr. Scott McDermid to manage and build LED Canada division

1-Jun-17 Launched the updated e-commerce website of LEDCanada.com

26-May-17 Signed license agreement with The Hampton Chocolate Factory, LLC to launch “Hamptons Reserve”, a premiere upscale cannabis brand

23-May-17 Board of Directors approved application to up list from OTCQB to OTCQX International

10-May-17 Installed cannabis oil extraction equipment at the Company's California extraction facility

2-May-17 Received a bank term sheet of $2.67 million at prime plus 2% in order to acquire a 10-acre functioning greenhouse in Florida

18-Apr-17 Commenced selling of Scorpion LED COB Grow Lights after receiving ETL certification

13-Apr-17 Announced rapid build-out of cannabis extraction and cultivation projects in California

22-Mar-17 FFM Consulting Services, LLC, a California-based subsidiary of the Company, acquired extraction machine for the extraction of cannabis oil

15-Mar-17 FFM Consulting Services, LLC, a California-based subsidiary of the Company, entered into an agreement with a California non-profit company to manage their cannabis cultivation facility

07-Mar-17 Raised $2.07 million by issuing 7.67 million units at price of $0.27 per share

21-Feb-17 The Company's subsidiary, FFM Consulting Services, LLC, a California limited liability company, entered into a management agreement with a California non-profit company, to manage its cannabis oil extraction facility

14-Feb-17 Created a Cannabis Advisory Board and selected Mr. John Sweeney to serve as the Chairman of the Board

08-Feb-17 Closed its previously announced definitive agreement to acquire a 15-acre parcel of land in Redland, Florida, to legally cultivate cannabis.

02-Feb-17 Arcturus Growthstar Technologies Inc. announced its name change to Future Farm Technologies Inc.

19-Jan-17 Closed second tranche of its private placement financing by issuing an additional 1.02 million units for gross proceeds of $255,399

09-Jan-17 Closed the initial tranche of its previously announced private placement financing by issuing a total of 1.18 million units for gross proceeds of CDN$295,000

15-Dec-16 Acquired a 15-acre parcel of land in Redland, Florida, to legally cultivate cannabis

06-Dec-16 The Company's LED division, LED Canada, received its largest purchase order to date from a 40-year-old Canadian chain of stores

15-Nov-16 Signed a Letter of Intent to acquire a 15-acre parcel of land in Redland, Florida, to legally cultivate cannabis

07-Nov-16 Signed a Letter of Intent to acquire a 10-acre operating greenhouse in Florida, to legally cultivate cannabis

26-Oct-16 The Company began trading on the OTCQB Venture Market

13-Oct-16 Established a new mobile gaming division (www.420AppGaming.com) with the intent to put out 420 themed games, which will generate revenue through In App Purchases (IAP) as well as through ad impressions

07-Oct-16 The Company's Board of Directors authorized a new stock option plan directed to Arcturus’ key management, employees and consultants

05-Oct-16 Issued 12 million common shares valued at $2.58 million to acquire a large portfolio of a revenue generating Apps and source code and

29-Sep-16 Engaged the services of CBO Financial, Inc. as its financial advisor with respect to New Market Tax Credits (NMTC) for a vertical farm project

27-Sep-16 Signed a letter of Intent to acquire a large portfolio of revenue generating App’s and source code.

31-Aug-16 Mr. Mike Withrow submitted his resignation as the Chairman of the Company’s Board of Directors

30-Aug-16 Mr. Rob Huston to step down from the Company’s Board of Directors in order that he may focus on building the Company’s LED division

11


30-Aug-16 Entered into a three-year lease with an option to extend for commercial space in North Kingstown, Rhode Island, where the Company plans to develop its flagship farm

16-Aug-16 Raised $205,500 by issuing 4.11 million units at a price of $0.05 per unit

03-Aug-16 Settled debt of CDN$60,000 by issuing 1.2 million units at $0.05 per units

20-Jul-16 Effective July 19, 2016, the Company’s common shares commenced trading on the OTC Bulletin Board under the trading symbol “AGSTF” after the Financial Industry Regulatory Authority (FINRA) approved a change of the trading symbol of the Company’s common shares

19-Jul-16 Appointed Mr. John Sweeney as a director of the Company

12-Jul-16 Completed the production design to its proprietary hydroponic plant feeding system, developed by Efficacy Technologies

06-Jul-16 Appointed Mr. Craig Stanley as a director of the Company

02-Jun-16 Appointed of Mr. Scott Davis as Chief Financial Officer of the Company

27-May-16 Appointed of Mr. William Gildea as the Chief Executive Officer and director of the Company in place of Mr. Robert Huston

25-May-16 Entered into a definitive purchase agreement with TC Holdings Inc. and TerraCity Lawrence, LLC to acquire all of the outstanding interest of TC Holding Inc. in TerraCity Lawrence, LLC in consideration for 14.97 million common shares of the Company

20-May-16 Entered into LOI with TC Holdings Inc. to acquire all of the outstanding interest of TC Holding Inc. in TerraCity Lawrence, LLC

25-Feb-16 Acquired the ownership rights of a proprietary hydroponic plant feeding system developed by Efficacy Technologies Inc.

23-Feb-16 Mr. Mike Withrow acquired 420,000 common shares of the Company representing approximately 2.2% of the issued and outstanding common shares of the Company

18-Feb-16 To settle outstanding indebtedness of $21,000 owing to a director of the Company through the issuance of 420,000 common shares of the Company at $0.05 per share

16-Feb-16 Effective at the open of markets on February 17, 2016, the Company’s common shares will be listed and posted for trading on the Canadian Securities Exchange, under the symbol “AGS”, and delisted from the TSX Venture Exchange

12-Feb-16 Completed the acquisition of certain LED (light-emitting diode) lighting equipment and intellectual property from Ultimate Energy Savings Canada Inc.

11-Feb-16 Bi-Optic Ventures Inc. changed its name to Arcturus Growthstar Technologies Inc.

19-Oct-15 Mr. Robert Huston to join the board of directors and to serve as Chief Executive Officer of the Company

07-Oct-15 Entered into an asset purchase agreement with Mr. Robert Huston, Growthstar Technologies Inc. and Ultimate Energy Savings Canada Inc., to acquire certain LED lighting equipment and intellectual property

09-Sep-15 Appointed Mr. Donald Scott McDermid as Director of the Company

06-May-15 Appointed Mr. Michael Withrow as the Chief Executive Officer and Mr. Brayden R Sutton as Director of the Company

05-Mar-15 Appointed Mr. William A. Gildea as Chief Executive Officer (CEO) of the Company

23-Dec-14 Appointed Mr. Mike Withrow to the Company's Board of Directors

16-Dec-14 Raised $500,000 by issuing 10 million shares at $0.05 per share

22-Oct-14 Consolidated its common shares on a 10 old for one new basis

09-Apr-14 Extinguished $395,395 debt by issuing 7.90 million shares at $0.05 per share

16-Sep-11 Terminated its intention to acquire 100% of the shares of Eidam Diagnostics Corporation, in a reverse takeover transaction

24-Sep-10 Entered into a letter of intent with Eidam Diagnostics Corporation, to acquire 100% of the issued and outstanding shares of Eidam in a reverse takeover transaction

14-Jun-10 Raised $600,00 through issuance of 6 million units at $0.10 per unit

01-Aug-08 Raised $495,000 through sale of 4.5 million shares at $0.11 per share

23-May-08 Cancelled reverse take-over transaction with Pacific Bio-Pharmaceuticals, Inc. and PRB Pharmaceuticals, Inc.

14-Nov-07 Appointment of Dr. Linda J. Allison as the new President & CEO of the Company effective immediately

03-Jul-07 Negotiated a proposed Bridge Loan of up to CDN$200,000 from four lenders at CDN$50,000 each

01-Jun-07 Terminated its sponsorship agreement with Gateway Securities Inc. and entered into a new sponsorship agreement with Global Maxfin Capital Inc.

03-Apr-07 Acquired Pacific Bio-Pharmaceuticals, Inc. And, Gateway Securities Inc. acted as sponsor to the Company in connection with the acquisition

Source: Company Filings

12


Industry Overview

We now present the reader with recent trends in the medical cannabis industry followed by LED industry trends.

Medical Cannabis - A drug with rich medical significance Cannabis (also known as Marijuana, weed, pot and other names) is a psychoactive drug produced from the cannabis plant (cannabis sativa and cannabis indica). Cannabis has been historically (as early as 7,000 BC) used as an intoxicant, medicine and as a drug for recreational purposes. Cannabis’s medical significance has been documented in a compilation of medical drugs (the first official pharmacopeia) as early as 1 A.D, which signifies cannabis’s usage as a cure for more than 100 ailments such as rheumatism, gout and others. Despite its wide medicinal value, cannabis usage is considered illegal in most countries due to its psychoactive characteristics. This led to the creation of illicit black markets. However, currently, the acceptance rate is growing among countries including the US, which is a major player in the cannabis market. Currently, ten more countries have recently legalized cannabis in some form. Cannabis contains more than 70 active compounds with Tetrahydrocannabinol (THC) and Cannabidiol (CBD) being the two main compounds of known therapeutic effect (as per the Medicinal Cannabis Association (MMA)). THC is highly psychoactive, and is widely used for recreational purposes with reasonable medical usage. CBD is known to possess analgesic, anti-anxiety and anti-inflammatory properties with non-psychoactive effects, which makes it attractive for wide medicinal usage. For instance, Epidiolex, a pharmaceutical form of CBD was cleared by FDA for testing in children as a cure for epilepsy. The composition of THC and CBD varies with different Cannabis strains and the medical condition changes in accordance with the THC/CBD composition. The levels of CBD and THC signify the medical and recreational usage of cannabis.

Accelerating legalization of cannabis in the US is expected to drive future market growth Given the medical significance of cannabis, legalization of cannabis usage has gained global acceptance, primarily among the US states. Exhibit 12 shows the states where Cannabis usage is legalized in the US. Currently, a total of 29 states and the District of Columbia have passed laws legalizing cannabis usage in some form (Recreational or Medical), and eight US states and British Columbia, Canada have legalized cannabis usage for recreational use. Further, more states are expected to legalize cannabis for medical usage going forward in 2017. Such accelerating trends in cannabis legalization should help increase capital investments in the sector and eliminate the illicit black market, then paving the way for open market growth and price discovery.

Exhibit 12: Legalization of cannabis usage in US states is expected to drive the market further high


Exhibit 13 shows the prices of cannabis across the US states. Cannabis price is least expensive in the states (such as Oregon, Washington and few others) where its usage is legal in all forms including recreational purposes. With few other states contemplating on legalizing cannabis, prices are expected to increase initially in these states on factors such as increased demand (as anyone can consume cannabis), and hoarding. However, in the long term, prices are expected to stabilize as the market attains equilibrium with more players entering into the legalized cannabis market.

13


Exhibit 13: Cannabis price (in ounce) across states signifies a trend

Source: PriceOfWeed

US retail cannabis sales Exhibit 14 shows the projections of cannabis retail sales in the US. Retail cannabis sales (medical and recreational use) in the US increased by 35% to reach US$6.5 billion in 2016, and are projected to grow at a 36% CAGR from US$6.5 billion in 2016 to US$30.3 billion in 2021. Specifically, medicinal cannabis sales are projected to reach US$17.9 million. Such high increase in sales growth projections is directly attributable to the increasing rate of cannabis acceptance among US states. Specifically, California continues to play an integral part in the cannabis sales and is expected to account for 40% of US cannabis market in 2017.

Exhibit 14: US. Retail Cannabis sales is expected to reach US$30.3 billion in 2021

0

5

10

15

20

25

30

35

2015 2016 2017 2018 2019 2020 2021 2021(medicaluse only)

Source: GreenWave Advisors

14


Overview of Vertical Farming Market Vertical farming technology could help sustain food production Vertical farming and Controlled-Environment Agriculture (CEA) have emerged as potential solutions for present day agriculture glitches (such as monsoon problems, lack of solar radiation needed for photosynthesis in plants). Vertical farming is the practice of growing crops vertically in an optimized indoor environment using advanced CEA technologies (CEA technology combines engineering, plant and data science to optimize growth parameters such as light, water, CO2 and others). Vertical farming techniques increase the yield per available space and supports plant growth in urban households, which is a necessity in today’s scenario of rapid urbanization. As per United Nations’ “The World’s Cities in 2016” report, approximately 54.5% of the global population lives in urban areas in 2016. Further, urban areas are projected to house 60% of the global population in 2030. This would decrease arable land and could affect food production. Vertical farming technology would be helpful in sustaining food production under such conditions. Such rapid trends in urbanization coupled with the need to feed the growing population are expected to drive the growth of vertical farming market. As per Markets & Markets’ (a market research firm) estimates, the vertical farming market is forecasted to grow from approximately US$1.6 billion in 2016 to US$5.80 billion at a 24.8% CAGR. Vertical farming is a perfect boon to cannabis growers Cannabis is usually grown in warehouses due to existing laws and security concerns governing its cultivation. The demand for warehouses has increased significantly, since more states have legalized cannabis usage. Further, growers find it expensive to lease warehouse space due to high costs. For instance, the cost of leasing warehouses has increased exponentially in the past three years (Average price of industrial space in Colorado has increased from US$4 per square foot to US$18 per square foot.). Vertical farming’s ability to utilize additional space in the existing warehouse and high yield per cultivable space makes it ideal for cannabis cultivation.

Overview of LED lighting industry Lighting sets the mood of an environment and provides an aesthetic effect, thereby contributing to our quality of life. Light ing has wide applications in commercial and industrial usage. With advancements in technology it has found its applications in automotive and modern electronic devices. This has made lighting account for a major share in electricity consumption. According to International Energy Agency, about 20% of global electricity consumption is due to lighting. Conventional light sources like incandescent lamps, tungsten halogen lamps and compact fluorescent lamps (CFL) have dominated the lighting market for decades at the cost of high energy consumption. The need for energy efficient light sources has benefitted the Light Emitting Diode (LED) lighting segment. LEDs can provide luminous intensity same as conventional light sources by consuming less electricity. Hence, they play a significant role in tackling energy consumption issues. This has boosted the growth of the LED lighting industry over the years Tailor-made LED lighting turns beneficial for horticulture Conventional light sources are made for commercial and industrial usage. They cannot be designed to provide lighting to grow plants in a controlled environment. Whereas, LEDs can be altered depending upon requirements. They can be tailored to provide lighting at wavelengths viable for growing plants. This has paved the way for LEDs to be used in segments like horticulture, vertical farming, and also in poultry and livestock farming. Greenhouse farming has started to implement LED lightings to improve their production. Harrow Research and Development Centre, a greenhouse research complex facility, undertook a research on the dynamic temperature control offered by LED. They have found that crops such as sweet peppers and tomatoes show an increase in production by making use of this dynamic temperature control. Greenhouse vegetable growers usually never use supplemental lighting during winter. However, to achieve year-round production, they have started to adopt supplemental lighting like the LEDs. In Horticulture (also a type of Greenhouse farming), plants are grown mostly in an indoor setting, which requires artificial lighting to stimulate photosynthesis in plants. Even though conventional light sources are cheaper compared to tailor-made LED light sources, they tend to produce excessive heat, which tampers the optimum growing environment and consume more energy. Horticulturists are shifting to LEDs despite high costs as the benefits from using LED lighting outweigh the costs. The spectrum produced by LEDs is found to enhance the photosynthesis process and has significant effect on the plants like color, longer stems etc. According to LEDinside, the market share of LEDs in the specialty lighting market, which includes surgical lighting, horticultural lighting, marine lighting and smart lighting, will increase to US$16.4 billion in 2020 from US$4.36 billion in 2016. LEDs are widely used in vertical farming as they could provide uniform lighting throughout the day without producing heat. Due to this, LEDs used in certain vertical farms are placed near plants and are seen to improve plant growth. Through advanced research, it has been found that, plants show efficient chlorophyll absorption when exposed to lighting in blue and red colors and also to a spectrum with wavelengths ranging between 600 to 700nm (nanometer) and between 400 to 500nm. This spectrum range varies from plant to plant and also during different stages of the plant’s growth cycle. Technological improvisations have helped in achieving LED lighting panels, which can provide lighting at the required spectrum. The use of LED lighting is also found to shorten the growth cycle of plants. For instance, LED lighting has accelerated the growth time of lettuce by making it reach its harvest weight in 27 days compared to the average growth time of 30 days. This, in turn, has increased the harvest cycle of lettuce from 12 to 13 harvest cycles in a year. Heliospectra, a LED grow lights provider, has used the LEDs to provide customized lighting spectrum, which could shorten the flowering cycle of a cannabis plant. In future, similar LED lighting technology could help in shortening the growth cycle and increase the production of all major agricultural crops.

15


At present, about 80% of the cultivable land is already in use. According to the United Nations (UN), world’s population is predicted to grow by approximately 2.5 billion within 2050, with 80 percent of the world’s population living in cities. Therefore, when such conditions occur, innovations in LED lighting technology could facilitate in cultivating plants indoors. Such innovations could also make cultivation in urban areas possible. WinterGreen research’s report, an international business analysis and forecast company, states that LED grow light modules market is expected to reach US$3.6 billion by 2020. Research is also undertaken with a viewpoint that LEDs could provide postharvest preservation and microbiological food safety. This could further widen the application of LED grow-lights segment. Characteristics of LED make it a favorable alternative in various segments LEDs were costlier than CFLs when they were introduced. Technological advancements have brought down the price of LEDs, which has made consumers to prefer LEDs over CFLs. The LED lighting industry has its applications in three segments, namely, automotive lighting, commercial and industrial lighting or general lighting, and backlighting segment. LED’s characteristics such as longer lifespan, low power consumption and high shock resistance have enabled it to be used for automotive lighting. Technology has helped improve the heat-light ratio of LED lighting, which has further increased the acceptance of LEDs in the automotive lighting segment. According to the report “Global Automotive LED lighting market 2016-2020” published by Technavio, a leading market research company, the automotive LED lighting segment is expected to grow at a CAGR of 18.43% from 2016 to 2020. This growth is mainly due to decline in price of LEDs and increase in automobile production worldwide. Moreover, LEDs are commonly used for indoor and outdoor lighting of residences, to light up workstations in industries, and as displays for TVs, mobile phones and other electronic gadgets. This is primarily due to the energy efficiency offered by LEDs. The National Electrical Manufacturers Association (NEMA), an association of medical imaging and electrical equipment manufacturers, has established sales indices, which are measures of NEMA member companies’ US shipments of various light sources and can track the demand for those light sources. Exhibit 15 shows the sales index of LEDs to be on a clear, significant rising trend.

Exhibit 15: Sales index of light sources for the period 2012-2016

Source: National Electrical Manufacturers Association (NEMA)

Global policies for efficient energy lighting drive the demand for LEDs The demand for LEDs has increased as they consume only one fifth of the power consumed by incandescent lamps. LEDs are starting to replace CFL and incandescent lamps in residential and commercial markets. Exhibit 16 presents the market penetration of light sources like LED, CFL, Halogen and Incandescent lamps for the period 2012-2016. NEMA’s market penetration data clearly shows that LED market penetration has increased to 32.4% in the third quarter of 2016, from 0.2% in 2012. And CFL’s market penetration has decreased to 13.2% in the third quarter of 2016, from 31.2% in 2012. Also, LEDinside’s, a division of Trendforce – market intelligence provider, “2017 Global Lighting Market Outlook” report states that LED’s market penetration will be 52% in 2017 due to the growing demand from general lighting segment. European market has the largest demand for LED lighting and accounts for about 31% of market share for LEDs in 2016. It is followed by North America and China.

16


Exhibit 16: Market penetration in global lighting market

Source: National Electrical Manufacturers Association (NEMA)

This increase in market penetration of LED is mainly attributable to the policies adopted by nations toward efficient energy consumption. According to International Energy Agency’s (IEA) “Energy Efficient Market Report 2016”, the policies covering the lighting market has increased to about 60%. In Europe, implementation of energy efficiency regulations like the EU Green Paper led to the increase in demand for LED lighting. Further, the Chinese government’s initiative to phase out incandescent lamps in 2011 has aided in the growth of LED lighting market in China. By ratifying the Paris Agreement, the Indian government has committed to cut emissions by 20%. As a step towards achieving this target the Indian government has planned to retrofit its street lights with LEDs. It has been estimated that about 200 million LEDs will be required for this process, thereby adding to the demand of LED lighting industry. Similarly, the World Bank’s “Lighting Africa Program” is also expected to add to the demand. We now present the reader with few of the Company’s comparables operating in the Cannabis and CEA space,

Cannabis Company Comparisons Future Farm’s market capitalization is well below the average market capitalization of the Cannabis index as shown in Exhibit 17. As of July 13, 2017, the Canadian cannabis market capitalization index, which included 18 companies, stood $5.71 billion CAD, with an average of $317.2 million CAD. In the US, the Cannabis capitalization index stood at $4.41 billion USD, which comprised of 18 companies as well, with an average market capitalization of $245 million USD. A significant milestone for Future Farm is the anticipated achievement of positive cash flow in the first quarter of 2018, once initial harvesting is complete.

Exhibit 17: Future Farm’s market cap is well below the average Cannabis index (As of Jul 18, 2017)

Market Number of Companies Reporting Total Market Cap Average Market Cap Future Farm Tech Market Cap

US 18 USD 4.41 Billion USD 245Million USD 13.20 Million

Canada 18 CAD 5.71 Billion CAD 317.2 Million CAD 16.27 Million

Source: https://marijuanaindex.com

We now provide the reader with Future Farm’s major comparables and their latest technology, which should help the reader understand the Company’s relative position in the North American CEA market. The comparables are drawn from the US and Canadian Cannabis index.

• Affinor Growers Inc. (AFI.CAN) - Affinor is a Vancouver-based vertical farming technology company. Affinor has a market capital of CAD $12.35 million and is publicly traded on the Canadian Stock Exchange and US OTC market. Affinor acquires patents and commercializes the vertical farming technology for indoor CEA and outdoor greenhouse industry. Currently, Affinor installs its beta prototypes to third parties, which will help validate, confirm projects and build commercial models. Affinor plans to build a pilot plant or small commercial facility to produce various crops. On May 29, 2017, Affinor announced that it has completed initial medical cannabis growth trial with a potential to increase productivity by 200% from its vertical farming technology at Mission, British Columbia. The system holds 256 cannabis plants to grow medical cannabis. Currently, Affinor is negotiating with cannabis growers for larger pilot trial plans in North America.

17


• Growlife Inc. (PHOT) - Growlife is a Washington-based company focused on providing assistance for commercial and urban cultivation operations. Growlife supplies hydroponic equipment, lighting, nutrients and other supplies used in the growth of plants through retail stores and online portal greners.com. Growlife has a market capitalization of US$13.6 million and traded in the US OTC market.

• Surna Inc. (OTCMKTS: SRNA) - Surna Inc. is a Colorado-based company manufacturing technology and products for indoor cultivation. The Company has a market capitalization of US$22.2 million and trades in the US OTC market. Surna’s climate control products include Surna reflector, Commercial Chiller, Air Handlers and Dehumidifiers. Air Sanitation is the company’s biosecurity products which reduces the risk from harmful organisms. On February 28, 2017, Surna signed agreement with Vancouver-based Sante Vertias Therapeutic to supply equipment. Surna received significant portion of revenue from growers in the State of Nevada. Surna generated revenue of $1.74 million for the three months ended June 30 2017, compared to $1.89 million for the same period in 2016. This revenue decline was primarily due to customers delay to receive Surna’s equipment.

• Solis Tek Inc. (SLTK) - Solis is a California-based company specializing in research, design and manufacture of lighting products for indoor cultivation. Solis has a market capital of US$49.20 million and trades in US OTC market. Solis’s products are complete fixtures, digital ballasts, digital lamps, reflectors and lighting accessories.

Exhibit 18 shows the financial/valuation metrics of the comparables. From the price charts shown below, it is noted that after the successful legalization of cannabis cultivation in nine US states, the share prices of cannabis companies have increased significantly.

Exhibit 18: Comparable analysis

Companies Market Cap

(USD million) Price (USD) EV/Revenue P/S P/B

1-year price charts

Affinor Growers Inc. (OTCMKTS: RSSFF)

$6.7 $0.05 N/A 207.1x 2.7x

Surna Inc. (OTCMKTS: SRNA)

$19.7 $0.11 2.9x 2.7x NA

Solis Tek Inc. (OTCMKTS: SLTK)

$48.8 $1.34 5.60x 4.7x 36.6x

Growlife (OTCMKTS: PHOT)

$13.42 $0.01 16.6x 7.2x NA

Future Farm Technologies Inc. (OTCMKTS: FFRMF)

$15.3 $0.17 96x 242.8x 7.4x

Source: Company filings and Yahoo finance

18


Company SWOT Analysis

We now discuss the various strengths and weaknesses of Future Farm. Further, we also provide a brief outlook of the various opportunities and threats that the Company is exposed to.

Strengths

Well-designed milestones and project timelines Future Farm has set clear project timelines and milestones for 2017, which should help establish the Company firmly in the cannabis market and LED industry. The Company is also scouting for joint ventures to produce legal cannabis in the US and Canada. Future Farm is also planning a joint venture with cannabis growers and distributors, having legal permission to sell medicinal cannabis. The Company is also planning to commercialize LED technology to various cannabis farms. These specific growth plans of the Company will help raise funds, acquire lucrative projects, thereby generating revenue.

Management Team Future Farm’s management team has tremendous expertise in operational, financial and technical skills, which strengthen the Company’s commitment towards its business goals. Mr. William Gildea is the Company’s Chairman and Chief Executive Officer (CEO) with more than 20 years of experience in handling environmental business and projects. Mr. John Sweeney is the Chief Operating Officer (COO) of the Company with over 16 years of experience in the field of cGMP (current Good Manufacturing Practices) manufacturing in biotechnology industry. Mr. Scott McDermid is a director of the Company and also manages the Company’s LED segment. The Company also has a Cannabis Advisory Board headed by Mr. Sweeney. This board provides the Company with inputs on business, market and trends in the cannabis market. They would also monitor business performance on the whole and segment basis.

Good fund-raising capabilities Ability to raise capital consistently to meet timely completion of projects indicates the management’s commitments towards achieving their goals. Most recently, on August 15, 2017, the Company signed an agreement for a $500,000 line of credit with Veteran’s Capital Corp. Similarly, on March 07, 2017, the Company raised approximately $2 million through the issuance of $7.7 million units at an issue price of $0.27 per unit.

Weakness

Limited cash flow from operations The Company generated revenue of $40,905 for three months ended May 31, 2017. It was mainly due to the sale of LED lights from Future Farm’s online portals COBGrowthlight.com and LEDCanada.com. Despite generating revenue, the Company has a negative cash flow of $1.9 million or the three months ended May 31, 2017. This was attributable to higher operating expenses. Further, the Company is yet to commence farming operations of their cannabis farms in the US. Though the Company has good development pipeline, implementation of those future plans involves uncertainty such as financial instability or change in law, which may affect future revenue generating prospects.

Opportunities

LED – An energy efficient alternative There is a growing concern to control exploitation of non-renewable resources. This has highlighted the need to reduce energy consumption and has increased the demand for energy efficient devices like LEDs. In addition, technological advancements have reduced the price of LEDs and have found new uses in niche markets like horticulture. Governments have also drafted policies in favor of energy efficient alternatives. Moreover, LEDinside’s report states that LED’s market share will increase to 52% in 2017.

Threats

Competition Future Farm is in the medical cannabis industry, which is highly fragmented. The Company faces stiff competition with other companies across the global on various factors such as quality, partners for joint ownership, financial and marketing resources etc. Additionally, the Company is yet to commence production in their cannabis farms, which increases the risk of losing out to competitors having better financial capability, operations and technology. Hence, if the Company is unable to overcome these hurdles it would drastically affect their sales and eventually impact the financial and operational performance of the Company. Regulations Future Farm is operating in the medical cannabis market, which is subject to various laws and regulations. The Company needs to apply for certain approvals or licenses to commence production of cannabis. Future Farm also needs to receive all necessary approvals relating to distribution of cannabis. If the Company fails to comply with these regulations, it may incur cost for the same. Further, the Company’s cost may also increase if there are changes in regulations or delay in acquiring permits.

19


Excessive LED production from China Future Farm also operates in the LED industry and faces stiff competition from China. Large and medium-sized LED manufacturers in China are expected to increase their production due to increased demand. Chinese players are also enjoying support such as government subsidies, low-interest loans from state-run banks and others, to price war in LED industry. In 2Q16, gross margin of Chinese LED manufactures stood at 24.5%, according to data from LED inside.

Financial Performance

We now present the financial performance of Future Farm Technologies Inc. We begin with a cash burn analysis followed by analysis of the financial statements of the Company. The Company follows March-February as its fiscal financial period. Exhibit 19 explains the cash burn analysis and financial sustainability of the Company. Future Farm’s average cash burn stood at $0.15 million per month, with an average survivability of 3.79 months. We consider only operating activities for the calculation of cash burn, as there have been no significant investing activities. The Company’s cash position stood at $1.2 million as of May 31, 2017. On March 07, 2017, the Company raised approximately $2 million through the issuance of 7.7 million units at a price of 27 cents. Each unit consists of one common share and one-half share purchase warrant.

Exhibit 19: Cash burn analysis (in ‘000s)

Period/ Amount (in '000)

31-May-15

31-Aug-15

30-Nov-15

29-Feb-16

31-May-16

31-Aug-16

30-Nov-16

28-Feb-17

31-May-17 AVG

Net operating cash flow

(73)

(23)

(103)

(2)

(73)

(128)

(649)

(1,068)

(1,907)

(447)

Net investing cash flow

-

-

-

(60)

-

-

-

(121)

(172)

(39)

Net financing cash flow

-

-

-

150

-

296

1,691

2,046

1,180

596

Cash position (quarter end)

135

113

10

98

24

192

1,234

2,091

1,192

565

Burn Rate per month

(24)

(8)

(34)

(1)

(24)

(43)

(216)

(356)

(636)

(149)

Survival period (in months)

5.56

15.05

0.29

128.48

0.97

4.52

5.70

5.87

1.87

3.79

Source: RBMG Research

Exhibit 20 displays the Company’s income statements for the three months ended May 31, 2017 and May 31, 2016. During the three months ended March 31, 2017, the Company revenue from the sale of LED lights jumped 69% to $40,905 compared to $24,181 for the three months ended May 31, 2016. The sales of LED lights are from the Company’s LED division: COBGrowthlight.com and LEDCanada.com. In December 2016, the Company’s online portal LEDCanada.com received the largest LED purchase order from a 40-year old Canadian chain of stores, resulting in strong revenue from LED segment. Further, the Company partnered with CBO Financial Inc., for the development of its major LED vertical farm project in Baltimore, Maryland. In the three months ended May 31, 2017, Future Farm’s net loss widened to $4,159,913, compared to a net loss of $40,594 in the same period in 2017, primarily due to recognition of $2.42 million share-based compensation.

20


Exhibit 20: Income Statements for the three months ended May 31, 2017 & May 31, 2016

Particulars For the three months

ended May 2017 For the three months

ended May 2016 Y-o-Y (%)

Sales revenue- LED $40,905 $24,181 69%

Cost of goods sold- LED 26,417

8,464

212%

Subtotal $14,488 $15,717 -8%

Sales- app portfolio $44,649 $0

Subtotal $44,649 $0 NM

Gross Profit $59,137 $15,717 276%

Operating Expenses:

Advertising, promotion and public relations 195,431

913

NM

Bad debts (7,195)

4,000

-280%

Consulting and management fees 700,066

9,000

NM

Office and miscellaneous 58,884

1,234

NM

Professional fees 42,742

18,940

126%

Project management 714,609

-

NM

Rent and utilities 9,021

8,274

9%

Share based compensation 2,427,583

-

NM

Transfer agent and regulatory fees 10,162

6,113

66%

Travel 54,752

-

NM

Wages and benefits 12,948

7,837

65%

Total operating expenses $4,219,003 $56,311 NM

Other Expenses:

Interest expense ($9,725) $0 NM

Loss on foreign exchange (15,794)

-

NM

Rental income 25,472

-

NM

Total Other Expenses ($47) $0 NM

Net Loss and comprehensive loss ($4,159,913) ($40,594) NM

Non-controlling interest (22,812)

-

Net loss and comprehensive loss attributed to Shareholders of the Company ($4,137,101) ($40,594)

Loss Per Share, Basic and Diluted ($0.05) ($0.00) NM

Weighted Average Shares Outstanding 88,392,260

19,965,307

343%

Source: Company filings

21


Exhibit 21 presents Future Farm’s balance sheets as of May 31, 2017 and February 28, 2017. As of May 31, 2017, the Company’s cash and cash equivalents stood at $1.19 million, a significant decrease as compared to $2.09 million on February 28, 2017. The decrease in cash and cash equivalents as of May 31, 2017, was primarily attributable to purchase of equipment. Accounts receivables also decreased significantly by 13%, to $53,927, due to lower trade accounts receivables. As of May 31, 2017, prepaid expenses and deposits increased significantly to $805,533, as compared to $615,525 million as of February 28, 2017, primarily attributable to $593,077 of consulting fees and other prepaid expenses. In October 2016, the Company issued 12 million shares valued at approximately $2.6 million to acquire an App Portfolio. In May 2016, the Company also acquired a 75% interest in TerraCity Lawrence, LLC, (an urban agriculture business developing company) through the issuance of approximately 14.97 million shares valued at $823,712. As a result of these acquisitions, the Company’s intangible assets and goodwill stood at $1.58 million and $1.16 million respectively.

Exhibit 21: Balance Sheets as of May 31, 2017 and February 28, 2017

Particulars As of May 31, 2017 As of February 28, 2017 Change (%)

ASSETS

Current assets:

Cash $1,191,777 $2,090,615 -43%

Accounts receivable 53,927 62,250 -13%

Prepaid expenses 805,533 615,525 31%

Inventory 139,026 18,653 NM

Deposits 23,000 23,000 0%

Total Current Assets $2,213,263 $2,810,043 -21%

Non-current assets:

Prepaid expenses 435,375 467,625 -7%

Property, plant and equipment 1,187,950 1,015,547 17%

Intangible assets 1,583,216 1,583,216 0%

Goodwill 1,167,000 1,167,000 0%

Total Non-Current Assets 4,373,541 4,233,388 3%

Total assets 6,586,804 7,043,431 -6%

LIABILITIES AND SHAREHOLDERS' EQUITY

Current liabilities:

Accounts payable and accrued liabilities 416,423 415,382 0%

Due to related parties 143,655 158,975 -10%

Mortgage payable 58,293 56,102 4%

Note payable 26,939 59,225 -55%

Total current liabilities 645,310 689,684 -6%

Non-current liabilities

Mortgage payable 795,643 795,783 0%

Total liabilities 1,440,953 1,485,467 -3%

Equity:

Share capital 18,935,748 14,872,872 27%

Shares subscribed - 664,207 -100%

Commitment to issue shares 84,250 109,750 -23%

Equity reserves 1,229,588 854,957 44%

Deficit (15,381,214) (11,244,113) 37%

Total Shareholders’ Equity $4,868,372 $5,257,673 -7%

Non-controlling interest 277,479 300,291 -8%

Total Liabilities and Shareholders’ Equity 6,586,804 7,043,431 -6% Source: Company filings

Note: NM represents not meaningful

22


Exhibit 22 displays Future Farm’s cash flow statements for the three months ended May 31, 2017 and May 31, 2016. For the three months ended May 31, 2017, the Company’s operating cash outflow stood at $1,906,866, compared to the cash outflow of$73,960 in the same period in 2016. This was primarily attributable to higher operating expenses ($4.22 million) recorded for the three months ended May 31, 2017. Net cash used in investing activities stood at $172,403 for the period ended May 31, 2017, due to expenditure related to purchase of equipment. Further, for the three months ended May 31, 2017, the Company raised approximately $1.18 million through the issuance of shares compared to no financing activities for the same period in 2016.

Exhibit 22: Cash Flow Statements for the three months ended May 31, 2017 & May 31, 2016

Particulars For the three months ended May 31, 2017 For the three months ended May 31, 2016

Y-o-Y (%)

Cash Flow from Operating Activities

Net loss ($4,159,913) ($40,594) NM

Items not involving cash:

Bad debt expense (7,195) - NM

Foreign exchange 17,798 - NM

Interest expense 9,725 - NM

Rental income (25,472) - NM

Stock-based compensation 2,427,583 - NM

Shares issued for consulting and marketing services 107,500 - NM

Changes in non-cash operating working capital:

Amounts receivable 15,518

6,486 139%

Prepaid expenses (157,758) - NM

Inventory (120,373) (39,835) 202%

Accounts payable and accrued liabilities 1,041

(17,313) -106%

Due to related parties (15,320)

17,296 -189%

Net cash flow from operating activities (1,906,866)

(73,960) NM

Cash Flow from Investing Activities

Acquisition of equipment (172,403) - NM

Net cash flows (used in)/from investing activities (172,403)

- NM

Cash Flow from Financing Activities

Proceeds from private placement 1,406,967 - NM

Share issuance costs (244,250)

- NM

Proceeds from exercise of warrants 50,000

- NM

Repayment of note payable (32,286)

- NM

Net cash from financing activities $1,180,431 $0 NM

Change in cash ($898,838) ($73,960) NM

Cash - Beginning of period $2,090,615 $97,561 NM

Cash - End of period $1,191,777 $23,601 NM

Non-cash Investing and Financing Activities:

Shares issued for intangible assets and goodwill $0 $906,083 -100%

Broker’s warrants 97,048 - NM Source: Company filings

23


Key Risk Factors

Financial risk Future Farm generates revenue by selling LED lightings through their online retail portals COBgrowlights.com and LEDCanada.com. However, the Company also incurs huge expenses. Currently, Future Farm is raising funds time to time by issuing shares in the capital market, which is economically unsustainable in the long term. If the Company continues to raise funds from the capital markets, it would lead to significant ownership dilution. Regulatory risk Future Farm has various segments across the US and Canada. The Company is required to abide by all government norms and regulations. Since the Company produces cannabis, it is necessary for them to receive all the requisite approvals. If Future Farm fails to obey these regulations it may incur penalties and may disrupt project operations, which would hamper its revenue. Competitive risk The Company is operating in the cannabis and LED industries, which are highly competitive and fragmented. Thus, actions of competitors and new entrants could adversely affect the Company’s sales and subsequently impact revenue. Risk to rapid technology change Future Farm acquires and develops technology relating to the CEA market, which can experience rapid and significant changes in technology. Hence, it is necessary for the Company to keep up with the latest technology. If the Company fails to innovate, their products may become less competitive. Risk with retention of employees and officers Future Farm’s success is dependent on the efforts and abilities of its management and operating teams. Future Farm’s management team has vast experience in the field of environmental business. Loss of key personnel and employees could adversely affect the Company’s ability to achieve its growth targets.

Profile of Directors and Management

William Gildea, CEO & Chairman Mr. William Gildea is the Chief Executive Officer (CEO) & Managing Director of Future Farm with over twenty years of experience in the environmental industry and in the field of finance. He holds a Master of Business Administration (MBA) from Rensselaer Polytechnic Institute. Mr. Gildea has founded and is serving as president of ECAP LLC, an investment firm, which helps in transforming environmental concerns into business opportunities. He is also the founder of Converted Organics Inc., a company which utilizes clean technology to produce organic fertilizer. Mr. Gildea also founded Environmental Warranty and holds a position of Managing Director. Prior to ECAP, he has held senior positions at Connecticut Bank & Trust and Phoenix Investment Counsel.

Scott Davis, CPA, CGA, CFO Mr. Scott Davis is the CGA and Chief Financial Officer (CFO) of future Farm. He is also a partner of Cross Davis & Company LLP Chartered Professional Accountants. Prior to Future Farm, he worked at Appleby Inc. for four years as Assistant Financial Controller and Auditor for two years at Davidson & Company LLP. John Sweeney, Director & COO Mr. John Sweeney is a director of the Company with about 16 years of experience in the field of direct cGMP (current Good Manufacturing Practices) manufacturing. He is also the chairman of the Company’s Cannabis Advisory Board (CAB). He completed MS in Engineering Management from Tufts University in Medford, MA and also holds a BS in Biology from the University of New Hampshire, Durham. Mr. Sweeney has also held several senior positions in companies like Pfizer, Wyeth and Genzyme. He has vast knowledge in the field of manufacturing commercial and clinical products. He has also worked as a liaison for the several auditing regulatory agencies, which included FDA and EMA. Craig Stanley, Director Mr. Craig Stanley is a director of the Company. He is the founder and CEO of CBO Financial Inc., a financial consulting firm, which provides financial and technical support for companies operating in the CEA market. CBO has won six awards under the New Markets Tax Credit (NMTC) program of worth $150 million and 11 additional awards for clients totaling $378 million from the U.S. Treasury Department. NMTC program offers incentives to companies through tax credits for their investment in low-income communities of the US. Scott McDermid, Director Mr. Scott McDermid is a director of the Company with more than twenty years of experience in the field of land development and real estate management. He is also the proprietor of Rocky Mountain Investments.

24


Chris Lesh, Cannabis Advisory Board Mr. Chris Lesh is a member of the Company’s Cannabis Advisory Board (CAB). He has more than ten years of expertise in the area of cannabis cultivation industry in Washington State. He also has vast experience in sourcing capital, adding production capacity and efficiently and effectively setting up facilities. Prior to Future Farm, Mr. Lesh worked as production director at Privateer Holdings, where he managed operations of cannabis production at Tilray’s Vancouver facility. Derek Ross, Cannabis Advisory Board Mr. Derek Ross is a member of the Company’s Cannabis Advisory Board, with over ten years of expertise as a consultant for different cultivation companies and non-profit dispensary in the US. He founded CannaTech LLC, a Rhode Island-based company focusing in cannabis consultation. He is also a founder and CEO of Cannatech Medicinals, a Massachusetts-based cannabis dispensary. Donny Sizemore, Cannabis Advisory Board Mr. Donny Sizemore is a member of the Cannabis Advisory Board, having 28 years of experience as a project developer and brand builder. He is the Chief Executive Officer (CEO) of Dominion Solaris LLC, a cannabis consultation firm. As a project developer and brand conceptualizer, Mr. Sizemore concentrates more on data driven results, which ranges from seed-to-sale production. David Gawitt, Cannabis Advisory Board Mr. David Gawitt is a member of the Cannabis Advisory Board. He has more than ten years of expertise as a consultant for different cannabis dispensary and cultivation firms in western US. He founded CannaSure Agriculture LLC, a Denver-based cannabis consulting firm and holds a position of Chief Executive Officer (CEO). Mr. Gawitt has vast knowledge in retail design, regulatory compliance, production and marketing strategies.

Shareholding Pattern

As of July 18, 2017, the Company had 90.41 million fully diluted shares, including 5.71 million of warrants and 3.9 million of options as shown in Exhibit 23.

Exhibit 23: Capitalization structure as of July 18, 2017

Particulars (in millions)

Common Shares Outstanding 90.41

Warrants 5.71

Options 3.9

Fully diluted 100.03


25


Sources

• Company Website

• Company Press Release & Presentations

• SEDAR Filings

• New York State Energy Research and Development Authority

• Marijuana Index

• National Electrical Manufacturers Association (NEMA)

• www.ledinside.com

Disclaimer

The information contained herein is not intended to be used as the basis for investment decisions and should not be construed as advice intended to meet the particular investment needs of any investor. The information contained herein is not a representation or warranty and is not an offer or solicitation of an offer to buy or sell any security. To the fullest extent of the law, RB Milestone Group LLC (“RBMG”), its staff, specialists, advisors, principals and partners will not be liable to any person or entity for the quality, accuracy, completeness, reliability or timeliness of any information provided, or for any direct, indirect, consequential, incidental, special or punitive damages that may arise out of the use of information provided to any person or entity (including but not limited to lost profits, loss of opportunities, trading losses and damages that may result from any inaccuracy or incompleteness of such information). Investors are expected to take full responsibility for any and all of their investment decisions based on their own independent research and evaluation of their own investment goals, risk tolerance, and financial condition. Investors are further cautioned that small-cap and microcap stocks have additional risks that may result in trading at a discount to their peers. Liquidity risk, caused by small trading floats and very low trading volume can lead to large spreads and high volatility in stock price. Small-cap and microcap stocks may also have significant company-specific risks that contribute to lower valuations. Investors need to be aware of the higher probability of financial default and higher degree of financial distress inherent in the small-cap and microcap segments of the market. The information, opinions, data, quantitative and qualitative statements contained herein have been obtained from sources believed to be reliable but have not been independently verified and are not guaranteed as to accuracy, nor does it purport to be a complete analysis of every material fact regarding RBMG client companies, industries, or securities. The information or opinions are solely for informational purposes and are only valid as of the date appearing on the report and are subject to change without notice. Statements that are not historical facts are "forward-looking statements" that involve risks and uncertainties. "Forward looking statements" as defined under Section 27A of the Securities Act of 1933, Section 21B of the Securities Exchange Act of 1934 and the Private Securities Litigation Act of 1995 include words such as "opportunities," "trends," "potential," "estimates," "may," "will," "could," "should," "anticipates," "expects" or comparable terminology or by discussions of strategy. These forward-looking statements are subject to a number of known and unknown risks and uncertainties outside of the company's or our control that could cause actual operations or results to differ materially from those anticipated. Factors that could affect performance include, but are not limited to those factors that are discussed in each profiled company's most recent reports or company filings or registration statements filed with the SEC or other actual government regulatory agency. Investors should consider these factors in evaluating the forward-looking statements contained herein and not place undue reliance upon such statements. Investors are encouraged to read investment information available at the websites of Future Farm Technologies Inc. (“FFT”) at www.futurefarmtech.com and the SEC at http://www.sec.gov and/or FINRA at http://www.finra.org and/or other actual government regulatory agency. RBMG is a consulting firm headquartered in New York, New York, USA and is hired by client companies globally to carry out consulting services that include: corporate strategy formation, business development, market intelligence and research. RBMG is not a FINRA member or registered broker/dealer. RBMG research reports and other proprietary documents or information belonging to RBMG are not to be copied, transmitted, displayed, distributed (for compensation or otherwise), or altered in any way without RBMG's prior written consent. Over time RBMG will receive cash fees equal to one hundred and thirty thousand USD from FFT in exchange for RBMG consulting services. To date, FFT has paid RBMG eighty five thousand USD of this sum in cash, with the remaining forty five thousand USD still to be paid in cash over time. In this case, consulting services consist of corporate strategy formation, business development, market intelligence and research. These services include the preparation of this research report and RBMG helping FFT communicate its corporate characteristics to applicable investment and media communities. In addition, RBMG and/or its respective affiliates, contractors, principals or employees may buy, sell, hold or exercise shares, options, rights, or warrants to purchase shares of FFT at any time. In the past, RBMG’s principal (“Principal”), through a separate investment fund that was controlled by Principal (“Fund”), collectively purchased 1,638,623 common shares plus 819,311 warrants to purchase 819,311 common shares of FFT from FFT. The common shares and warrants came with four-month trade restrictions. Currently, Principal, through Fund, indirectly owns shares and warrants of FFT. Principal will directly or indirectly buy, sell, hold or exercise shares, options, rights, or warrants to purchase shares of FFT at its lawful discretion and this can happen at any time.

future farm technologies inc. future farm technologies inc. strong pipeline should help generate...

Documents