Future Farm Technologies Inc (OTCMKTS: FFRMF) is struggling in the market after feeling the full force of short sellers over the past 12 months. The stock is down by more than 80%, after turning bearish early last year. A plunge to all-time lows raises serious concerns about the Company’s growth metrics as well as long-term prospects.
FFRMF Price Analysis
Just as was the case in 2018, the stock has continued to edge lower even on the Company achieving significant milestones on its bid to become an industry leader in the hemp sector. For starters, Future Farm Technologies has closed a deal that will see it grow hemp in a 100-acre parcel as it seeks to ramp up its production capacity.
The Company has also continued to record impressive sales for its Chery Wine hemp seeds ever since it made them available in March. In the recent past, the Company has signed an agreement with a full-service hemp lab and CBD oil processing company in anticipation of a bumper hemp harvest.
Amidst the developments, the stock has continued to edge lower and now finds itself languishing at the $0.10 level, after shedding more than 40% in market value since the start of the year. Surging short selling pressure leaves the stock vulnerable to further drops given the underlying bear trend.
For the stock to turn bullish and avert further slides, then it will have to rise and stabilize above the $0.15 mark. Below the critical technical level, short sellers remain in control and could continue to push the stock lower.
What Does Future Farm Technologies Do?
Future Farm Technologies is a Canadian company that operates as an indoor plant, growth, Technology Company. It specializes in LED lighting and vertical farming solutions. It also provides indoor controlled environment agriculture systems.
Hemp Growing Drive
Even as Future Farm Technologies stock continues to edge lower, the Company continues to invest big on opportunities that have the potential to generate long-term value. The Company has already commenced the growing season at its 100-acre farmland in Hersey Maine, whereby it is growing hemp.
The Company expects as much as 120,000 pounds of biomass once the plant matures with each plant expected to produce as much as one pound of biomass. Once harvested Future Farm Technologies intends to process the biomass into full spectrum hemp oil as well as CBD distillate and CBD isolate.
In addition, Future Farm Technologies is projecting as much as 3 million hemp seeds in 2019 from its operations. Such a harvest would position the Company to be among the largest suppliers of high-quality hemp seeds in the country.
“We have been focused on caring for the seeds we are about to grow since we harvested them in 2018 because they have outstanding genetics that provide high propagation rates and high CBD content. It’s always exciting for me, as a farmer and a manager, to see that first sprout,” stated Zachary Lapin, General Manager of Future Farm Maine.
Hemp Processing Partnership
In addition to the hemp cultivation drive, Future Farms has inked a strategic partnership with Northeast Processing. The Vermont-based hemp processing company has agreed to process and test all of the hemp growing at Future Farm 100 acres in Maine.
Future Farm has already started building a pipeline of customers that would be able to purchase any extract, distillate, or isolate that comes into being once NEP completes processing works. The strategic partnership should allow NEP to provide customers with premium ingredients.
“This partnership with Northeast Processing allows for a scalable, efficient approach to processing, ensuring that our biomass receives the fastest, and most reliable care the northeast has to offer. It also positions Future Farm, once again, as an innovator in the rapidly growing demand for the sophisticated hemp-for-wellness customer base,” comments William Gildea, CEO of Future Farm.
Future Farm Technologies remains under pressure in the market given the underlying bear trend and the fact that short sellers remain firmly in control. Amidst the underperformance, the Company has continued to strengthen its prospects in the hemp industry, having already commenced cultivation on a 100-acre farm.
The Company is on its way to becoming an industry leader when it comes to supply of hemp seeds as well as CBD distillate and extracts. Given that the future looks bright ahead of the much-awaited hemp harvest, the stock could also bounce off the multi-year lows on investors taking note of the Company’s long-term prospects.
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Disclosure: We have no position in FFRMF and have not been compensated for this article.