Future Farm Technologies (CNSX:FFT) (OTCQB:FFRMF) has been making a lot of progress this week in advancing its hold on the cannabis market and the result is a 34% increase in the company’s stock.
Currently, Future Farm stock is trading at $0.8451, which is up $0.2152, or 34.16%, on Thursday’s market close of $0.6299. Its current price is the highest the stock has been at in five years, with the stock beginning its current climb at the start of November 2017.
The first big news of this week for the company, which focuses on hemp plant growing and LED lighting for the growing of hemp plants, was that its LED Canada division had successfully delivered its LED lights to a Washington State licensed cannabis grower and Puget Sound Energy customer. These lights, called Scorpion grow lights, are said to be the best grow lights in the industry. They help to reduce the cost of energy bills as well as cooling bills.
Scott McDermid, LED Canada’s manager commented on what a huge milestone this was for Future Farm and its Scorpion grow lights. The company is also going to be releasing an all-in-one home cultivation system for growing hemp plants, which will use the Scorpion LED lights. This system is set to release in the Canadian market, a smart decision by the company considering that recreational use of cannabis is set to become legal in Canada in July 2018. Legal-aged Canadians will be able to grow up to four marijuana plants for their own consumption, so with Future Farm set to release this at-home cultivation system, the company should be able to generate a lot of revenue once legalization occurs.
The cannabis industry, particularly that for the cannabinoid-based pharmaceuticals market, is expected to grow from $2 billion in 2020 to over $50 billion by 2029. Future Farm is making strong moves to be well-established within the market when this happens, which means that the company’s stock is likely to be worth well over what it is already increasing to now.
On December 21, Future Farm announced that it had leased 100-acres of land in Maine for the production of hemp plants that are to be grown in a way that maximizes the amount of the right type of cannabinoids – that is, the type of cannabinoid compounds that are becoming of increasing interest to pharmaceutical companies, as the compounds can treat many medical conditions without the usual side effects of regular treatments. The newly leased land will further expand Future Farm’s already acquired 120-acres that are being used as a licensed industrial hemp farm. Under the new lease agreement, Future Farm can also lease up to an additional 1,000-acres. This vastly expands the company’s production capabilities, putting them in a strong position in this rapidly growing market.
It stands to reason that Future Farm is set to do extremely well financially in the coming years, as production is amped and the industry grows in worth. It may be a small company now, but based on its moves this week, I’d judge it to be a strong contender in the future.
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