Future Farm Technologies Inc (OTCMKTS:AGSTF) is a micro-cap player in the cannabis patch that saw shares break out of a tight range on Wednesday in very heavy trade. The primary catalyst fueling the move was the company’s announcement that it has closed on its previously announced definitive agreement to acquire a 15-acre parcel of land in Redland, Florida, in a county that is designated to legally cultivate, process and dispense cannabis.
As noted in the release, Redland is an unincorporated community within Miami-Dade County, with Biscayne National Park to the east and Everglades National Park to the west. Redland is primarily a Miami suburb and a major agricultural area. Miami-Dade County is referred to as the nation’s “Salad Bowl” and “Winter Bread Basket.”
Future Farm Technologies Inc (OTCMKTS:AGSTF) trumpets itself as a leading indoor plant growth technology company specializing in LED lighting and vertical farming solutions. AGT’s business model includes developing and acquiring technologies that will further its position as a leader in the evolving Controlled Environment Agriculture (CEA) market for the global production of various types of plants.
The Company holds a worldwide license to use a patented vertical farming technology that, when compared to traditional plant production methods, generate yields up to 10 times greater per square foot of land. The contained system provides many other benefits including seed to sale security, scalability, consistency due to year-round production, cost control, product safety and purity by eliminating environmental variability.
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. Arcturus provides scalable, indoor CEA systems that utilize minimal land, water and energy regardless of climate, location or time of year and are customized to grow an abundance of crops close to consumers, therefore minimizing food miles and its impact to the environment.
The Company holds an exclusive, worldwide license to use a patented vertical farming technology that, when compared to traditional plant production methods, generate yields up to 10 times greater per square foot of land. The contained system provides many other benefits including seed to sale security, scalability, consistency due to year-round production, cost control, product safety and purity by eliminating environmental variability.
The Company is also in the business of designing and distributing LED lighting solutions utilizing the COB and MCOB technology. The Company is focused on delivering cost efficient lighting to North America via advanced e-commerce sites the Company owns and operates. LEDCanada.com which caters to B2B customers is a supplier of the newest and highest demand LED solutions. The Company also owns and operates COBGrowlights.com which caters to both large and small agriculture greenhouses and controlled cultivation centers.
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Management was predictably, but justifiably excited at the news.
“We are pleased to have reached this contract to acquire this prime parcel of land as it has a long history as a plant nursery, which was first established in 1963,” says Mr. William Gildea, Future Farm Technologies Inc.’s CEO and Chairman. Florida’s Legislature is beginning the process of figuring out how to implement Amendment 2, which allows for the expansion of legalized medical marijuana in Florida. The new law took effect on Tuesday, Jan. 3, 2017.
The Florida Department of Health now has until June 3, 2017 to finalize its MMJ regulations and until September 3, 2017 to issue the first ID cards to patients. Amendment 2 was approved by 71 percent of Florida voters on Election Day, and will allow higher-strength marijuana to be used for a wider list of medical ailments.
Recent action has seen 42% tacked on to share pricing for the listing in the past week. The situation may be worth watching. AGSTF has a history of dramatic rallies. Moreover, the listing has seen interest climb, with an increase in recent trading volume of just shy of 120% above the average volume levels in play in this stock over the longer term.
This is particularly important with a float in play that’s tight — not even 16M shares. It’s something the veterans know to key on: a mechanically driven price squeeze can result from this type of mix of small float and ramping attention from traders.
Currently trading at a market capitalization of $13.4M, AGSTF has a store ($146K) of cash on the books, which is balanced by about $105K in total current liabilities. AGSTF is pulling in nominal trailing 12-month revenues of $38K. In addition, the company is seeing recent top line growth, with sequential quarterly revenues growing at 3.4%. We will update the story again soon as further details emerge. For continuing coverage on shares of $AGSTF stock, as well as our other hot stock picks, sign up for our free newsletter today and get our next hot stock pick!