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Old 03-10-2015, 10:49 AM   Nav to Top 
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Default New Age Farm (CSE:NF) Closes Escrow on WA State Property

New Age Farm (CSE:NF) Closes Escrow on WA State Property

March 10, 2015 - Vancouver, BC: New Age Farm Inc. (CSE:NF) (www.newagefarminc.com) ("New Age Farm" or the "Company") is pleased to announce it has closed escrow on the purchase of the 2.69 acre parcel of land in Whatcom County, Washington State for a total purchase price of US$289,000 (the "Washington Property") as described in the Company’s news release dated November 5, 2014 (available on SEDAR). The acquisition of the Washington Property will allow the Company to move forward with its plans to build turnkey facilities for the two tenant-growers who have signed leases with New Age Farm (see News Releases dated December 15, 2014 and February 20, 2015).

Carman Parente, President of New Age Farm stated, "Closing escrow on the Washington Property is a significant milestone for the Company as we grow our agricultural land bank. Now that we have possession of the Washington Property, we can start the build-out of our Green Campus and provide our tenants with access to state-of-the-art growing facilities."

The Company also announces that it has entered into a second mortgage agreement on its Langley, BC property (the "Mortgage") in the amount of CAD$400,000 from a private lender (the "Lender"). The principal amount of the Mortgage is $400,000 and bears interest at the rate of 15% per year with a term of one year. Proceeds of the Mortgage will be used toward closing costs on the Washington Property and for general working capital purposes. The Company may pre-pay the Mortgage on payment of a three month interest penalty. In connection with the Mortgage, the Company has issued 1,000,000 common shares to the Lender. In accordance with applicable securities laws, the common shares will be subject to a four month and one day hold period.

About New Age Farm

Through its wholly-owned subsidiary, NHS Industries Ltd. ("NHS"), New Age owns a five and a half acre greenhouse facility in the lower mainland of BC with a 48,000 ft2 greenhouse facility, capable of growing 2.4 million 4" potted plants annually. NHS is in the process of formulating innovative proposals for small scale agricultural facilities for exploring multiple avenues for cash flow processes. The facility is located minutes from three major Canada – USA border crossings and direct routes to the lower mainland west and to all points east and west along 16th Ave to Hwy 99 and to Hwy 1 make its location in South Langley an ideal hub. NHS intends to become a beta site for sustainable growing capabilities as well as minimizing all carbon footprints with regard to all its on-site operations. This facility will meet a growing demand in the Metro Vancouver and Fraser Valley areas to help smaller growers become more efficient, more productive, implement value added product lines, and reduce waste.

Through its Washington State subsidiary, New Age Farm owns a second property that is located in Sumas, WA, where it intends to offer fully built out turnkey service operations to licensed I-502 tenant-growers who will lease the facilities for production and processing. With two leases already in place, operations in Washington State are expected to begin in the second half of 2015.

About the Washington I-502 Marijuana Market

In November 2012, the Washington State Liquor Control Board ("WSLCB") passed Initiative 502 ("I-502") pursuant to a vote by the people of the State of Washington. I-502 authorized the WSLCB to regulate and tax recreational marijuana products for persons over twenty-one years of age and thereby created a new industry for the growing, processing and selling of Washington State-regulated recreational marijuana products. A recent WSLCB commissioned report by the Rand organization suggests that there are currently up to 650,000 recreational marijuana users in Washington State, worth approximately $1.25 - $1.5 Billion USD in annual sales.
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