FutureWorld Corp (OTCMKTS:FWDG) has lightened its work load by selling off two of its subsidiaries, HempTech Corp. and Future Land Properties LLC. HempTech Corp. was sold to Infrax Systems for $60 million, while the later was acquired by Aegea Inc for $120 million. Both companies were evaluated financially by a third company, before a price was agreed upon. Additionally, it should be noted that there had been a material relationship between FutureWorld and Infrax systems. The majority shareholder for both the companies is Talari Industries; Mr. Talari is also the CEO of FutureWorld.
This deal marks the last, in a series of, material transactions between the two companies. Previously, Infrax had worked closely with Hemp Tech on developing technologies for the cannabis industry. Infrax, with this acquisition, aims to develop a whole new division for agriculture related technologies.
The company aims to use the opportunity, created by this move, to extract value for shareholders. Additionally, the acquired cash would be used for corporate development and dividends. The added cash would also help the company improve its balance sheet and financial health. The deals with the two companies also included that Future World would gain shares in the two companies. This would mean that Future World could easily gain access to any underlying technologies from either of the two companies, when they are needed.
Apart from selling off its subsidiaries to increase its financial health, the company had recently signed a distribution agreement with UTest. This deal was also accomplished by another subsidiary of the company, CB Scientific. The deal targets the company’s product of the year, Personal Analytics THC & CBD home test kits. The equipment would now be available through UTest for consumers.
Even though the company had sent out news to the shareholders that they can expect dividend from the acquired cash in the deal, but still FutureWorld Corp (OTCMKTS:FWDG) closed at $0.0026, after falling 3.7% on April 9. Currently, the company has 453.97 million shares being traded in the market, with a 52 week range of $0.00-$0.04.