Future Farm Hits PIPE for Acquisition
One of the historically biggest investors in the private-investment-in-public-equity markets has invested in the second PIPE from Future Farm Technologies Inc., which is using proceeds to fund the acquisition of a dispensary in Massachusetts.
Yorkville Advisors LLC is the investor. Yorkville has invested some $4.3 billion in 384 PIPE transactions.
Future Farm Technologies Inc. builds vertical growth systems that combine stacking with lighting to allow for more efficient plant growth than traditional ground-based agriculture.
The Canadian company has projects throughout North America, including California, Florida and Maryland, according to a Tuesday, March 13, news statement about the PIPE.
“The Company’s business model includes developing and acquiring technologies that will position it as a leader in the evolution of Controlled Environment Agriculture (CEA) for the global production of various types of plants, with a focus on cannabis.”
The Vancouver, British Columbia-based company has made several investments in U.S. cannabis companies. The current PIPE transaction involves the acquisition of dispensary assets in Attleboro, Mass.
“In January 2018, Future Farm signed a Letter of Intent to acquire an interest in Bristol County Wellness Center Inc.,” the company said in the news statement.
“BCWC was recently awarded a special permit from the City of Attleboro and a provisional license from the Department of Public Health to build and operate a 24,700-sq ft. RMD [registered marijuana dispensary] that will grow and sell medical marijuana, plus two additional dispensaries upon approval. This vertically integrated license allows BCWC to build out its facility and engage in cannabis cultivation, processing and retailing.”
The financing, the second $4 million deal with Yorkville, consists of 18-month, 8% secured convertible debentures and 3-year warrants. The debentures’ conversion price equates to a 15.6% discount.
Moody Capital Solutions Inc. was the placement agent.
The company also received about $2.55 million from warrant exercises