New Age Farm, Inc. (OTC Pink: NWGFF) is engaged in the construction and marketing of cannabis warehousing and processing facilities. Shares of New Age Farm, Inc. are skidding 18.12%, during early trading on Monday, November 28, 2016. Over the past three months, the processing facility company has seen average daily volume of 136,738 shares. However, nearly 334,400 shares or dollar volume of $50,160, has already exchanged hands on Monday.
Shares of New Age Farm, Inc. are losing ground on Monday, after the company said it has officially completed its second cannabis production facility in Washington State. The 5,600 square foot facility is located in Oroville, Washington and production is set to begin in the coming days. The facility can process 1,600 pounds of marijuana per month, which equates to $24 million in cannabis production per year. Here is the full press release detailing of the new facility:
New Age Farm, Inc. Press Release:
VANCOUVER, British Columbia, Nov. 23, 2016 (GLOBE NEWSWIRE) — New Age Farm, Inc. (CSE:NF) (NWGFF) (FSE:ONF) (www.newagefarminc.com) (“New Age Farm” or the “Company”), is pleased to report the completion of its 5,600 square foot state-of the art greenhouse cannabis production facility at its Oroville, Washington Green Campus which is capable of growing, trimming, curing and storing product. New Age Farm’s on-site master growers (the “Master Growers”) advise that production at the newly completed facility is expected to begin November 30, 2016 for New Age Farm’s I-502 Tier 3 licensed tenant-grower. The Tier 3 license allows the tenant-grower to produce and process marijuana, producing up to 30,000 square feet of plant canopy in the facility compound. The Master Growers estimate that the initial harvest date will be approximately 90 days from the start of seed planting.
New Age Farm’s Master Growers have over 52 years combined experience in the cannabis industry, with a proven track record for quality and consistency in the production of cannabis under commercial growing conditions. The Master Growers are expert in the specific needs for light, nutrition and feeding of cannabis plants, and understand and establish the ideal growing conditions, methods and media to produce a successful crop. As a result of the Master Growers’ carefully designed planting and harvesting rotation program, tenant-growers can expect to harvest a continuous crop every 30 days after the initial 90 day planting.
New Age Farm’s newly completed expansion, when at full capacity, will allow the facility to significantly increase the tenant-growers’ cannabis production capabilities, and, is designed to increase total production capacity to approximately 1,600 pounds of flower per month. At current estimated average sale prices of marijuana in Washington of US$1,250 per pound, this volume of production would support approximately $24 million in flower sales per year.
In addition, the New Age Farm Master Growers are part of a well-established retail network that includes over 50 outlets and, as part of their commitment to the success of our tenant-growers, intend to facilitate introductions between New Age Farm’s tenant-growers and their retail network.
Mr. Carman Parente, President and CEO of New Age Farm, commented, “We are extremely pleased that our Master Growers and operations crew continue to meet and exceed expectations helping us achieve this truly significant milestone at our Washington State Green Campus facility that our growing company needs to attain our strategic goals. Our assembled team of experts truly do provide complete seed to sale advisory and performance services for our Green Campus tenant-growers.”
About New Age Farm, Inc.
Through its Washington State subsidiary, New Age Farm owns two properties, one located in Sumas, WA, and the other in Oroville, WA, where it offers fully built out turnkey service operations to licensed I-502 tenant-growers who will lease the facilities for production and / or processing. With three leases already in place, operations in Washington State have begun and will expand further as the Company completes its build outs. In compliance with state regulatory requirements, New Age Farm’s facilities feature 24 hour security that enhances the safety and security of the community, our tenant-growers and their operations. All New Age Farm’s tenant-growers hold either Tier 2 or Tier 3 licenses allowing them to produce and / or process marijuana for sale at wholesale to marijuana processor licensees and to other marijuana producer licensees. A Tier 3 license allows for between ten thousand square feet and thirty thousand square feet of dedicated plant canopy while Tier 2 licensees can have up to ten thousand square feet of dedicated plant canopy. Revenue is generated on a base lease rate and the level of service that the tenant-grower requires for its production and / or its processing needs.
About the Washington I-502 Marijuana Market
According to the News Tribune, in the second quarter of 2016 overall sales of marijuana products in Washington State surpassed US$200 million for the first time. Based on an analysis of records from two state agencies, they reported that the gap between liquor sales and marijuana sales is steadily closing: while hard liquor sales surpassed cannabis sales by $54.8 million in Q1, the difference between the two decreased to $37 million in Q2. In July 2016, Washington State consolidated the marijuana retail market by closing medical marijuana shops and requiring all sales to be made through I-502 licensed recreational marijuana storefronts. Following this, sales at retail marijuana shops increased by $66.6 million in the third quarter of the year, to $278.6 million. Washington voters legalized recreational marijuana in 2012. In November 2016 voters in California, Maine, Massachusetts and Nevada approved recreational marijuana. In prior election years, Colorado, Oregon and Alaska also legalized recreational marijuana. In fact, nearly 60 percent of Americans now live in a state where cannabis is legal or soon to be legal in some form.