When HempTech Corp. (OTCPK: HTCO), a portfolio company of FutureWorld Corp. (OTCPK: FWDG), underwent a ticker change a couple weeks ago as part of becoming a public entity, the company said it planned on releasing news of “major contracts” received by it and FutureLand Corp., a former subsidiary of FutureWorld who remains tightly connected to both companies. FutureWorld, who posted $5,058 in revenue during the fourth quarter of 2015, describes itself in SEC filings as a “leading provider of advanced technologies and solutions to the global cannabis industry.” FutureWorld says it has investments in portfolio companies as subsidiaries, comprised of HempTech, NutraCann Labs, CB Scientific, URVape and Bioceudical Sciences.
Denver-based HempTech, a provider of Controlled Environment Agriculture and accompanying automation and analytic tools for growers of legal cannabis and industrial hemp, came public through a reverse merger with Building Turbines, Inc. late in March.
On Monday, HempTech made its first announcement, disclosing the singing of an exclusive Master Vendor Agreement with Tinkerer’s Obsession Labs in which HempTech will provide its grow.droid II, a shipping container grow system with a capacity of up to 80 plants, and environment software (branded as “CognetiX”). The agreement is for exclusivity across Alaska, the Continental U.S. and First Nations in Canada.
Per the pact, Tinkerer’s will buy a minimum of 1,000 of HempTech’s pod systems by 2022. Currently, the base retail price of a grow.droid II system for distributors is $85,000. At the base price provided by HempTech, that’s $85 million in systems. HempTech plans to begin shipping the systems this summer, according to today’s news.
Investors don’t seem impressed by the news for a company that already has a market capitalization of $268 million (according to OTC Markets, where it also has a “stop sign” for not providing disclosure), as not a share of HTCO has traded more than one hour into Monday’s trading session. Perhaps it’s because no information was provided on Tinkerer’s, nor does the company seem to have a website under an eponymous domain name, a surprising lack of info for a company making such a large commitment.
Investors should look for an SEC filing, which HempTech says it will provide a signed copy of the agreement “shortly.”
FutureLand Corp. (OTCPK: FUTL) is part of the deal as well. HempTech has penned an exclusive agreement with FutureLand, a cannabis and hemp specialty zoned land leasing company, for FutureLand to obtain financing and consultation support throughout the life of the MVA with Tinkerer’s. In exchange, FUTL will share revenue on the project with HempTech.
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