New age farm Exec summary......updated documentNEW AGE FARM INC
EXECUTIVE SUMMARY
Three Properties:
Langley, BC:
· 5 1/2 acres
· 48,000 sq ft greenhouse
· 365 days per year growing capabilities
· Plans for a 50,000 sq ft cold storage / dry storage, processing warehouse ($5 Mil Cost)
Langley will be spun out to a fully independent operation from New Age and will be issuing BONUS shares to the shareholders of New Age.
· (This transaction will help safeguard both companies from two different legal jurisdictions.
· New Age will be the US operations and Langley will be the Canadian operations.
· Balance sheets will be cleaned up
Funding requirements for Langley are projected to be approx $5 Mil for warehouse build out and greenhouse refurbishment.
On a fully built out basis initial gross revenue projections approximate $2.5 Mil
Sumas Washington:
· 3 acres (clear title)
· currently has two buildings totaling 6200 sq feet
· Current tenant is a Tier 3 Washington State I 502 (Production and Processing)
· Facility is completely fenced
· Currently going through planning stages with city counsel
Funding requirement of approx $2.5 to $3.5 USD
Projected gross revenue for New Age is approx $500,000 USD (We are looking for funding / operating partner)
Orville Washington
· 4 1/2 acres (50% owned) $75,000 mortg @ $1,000/month
· three tenants signed up (one Tier 2 tenant and two Tier 3 tenants)
· Facility has been built out for two of the tenants
· The Tier 2 tenant will be harvesting in Oct / Nov
· 6,000 sq ft greenhouse is currently being completed for one of the Tier 3 tenants and should be in planting in the next 30 days with an anticipated harvest approximately 90 days after greenhouse completion
· The third Tier 3 tenant will start build out within the next 60 - 90 days pending final funding requirements
Additional funding requirements of approx $250,000 USD to complete for third tenant.
Projected gross revenue for full year operation and current three tenants:
From Tier 2 Tenant approx $500,000 / year
From 1st Tier 3 Tenant approx $6,000,000 / year
From 2nd Tier 3 Tenant approx $4,000,000 / year
The above gross revenue projections are based on the tenants only producing flowered products. By providing additional extraction equipment and producing oils and extracts, baked goods, etc., the same revenue stream becomes a multiple of 2X to 3X!!
ON A FULLY BUILT OUT SCENARIO REVENUE IS PROJECTED ON A 90 DAY CYLCLE.
ADDITIONAL NOTES:
After Spin out of Langley property - Clean balance sheets for all entities
- Monthly burn rate for Orville is approximately $10k USD
- Approximate monthly burn rate for New Age $12-15k a month for corporate secretary, accounting, and salaries etc; shares for debt structure not paid in cash, and have a four month hold restriction.
· The Rand Corporation has estimated that the Washington State recreational marijuana industry is valued between USD $1.5 Billion to USD $2.5 Billion
· Washington State has issued less than 200 licenses
· Washington State has identified approx 650,000 potential users for it's market