Fusion Farms
Hurricane-protected Aquaponic Farm
Regulation Crowdfunding
Mayagüez, PR
Agriculture
Accepting International Investment
On April 17, 2019, Fusion Properties Managment Group, Inc. (d/b/a Fusion Farms) filed an amendment increasing the authorized shares of Common Stock of the Company from 20,000 to 860,000. At same time, the Company effected a 43:1 stock split, increasing the pre-offering shares outstanding from 10,000 to 430,000.
All shares issued in this Offering at $430 per share prior to April 17th were included in the stock split, and as a result of the stock split, will own 43 shares of common stock for each share purchased prior to the amendment, resulting in the same percent of ownership of the Company.
All shares sold in the offering subsequent to the amendment will be sold at a price per share of $10.
The pre-money valuation of $4,300,000 has not been affected by this corporate action.
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Disrupting Puerto Rico’s Farming Model
Invest in Fusion Farms
Fusion Farms is located in a qualified Opportunity Zone and is the first hurricane-protected, indoor, vertical produce farm located in Puerto Rico.
Our 11,500 square foot concrete building has the capacity for 80,640 total plant net pots which translates to a production capacity of 1,183,000+ ounces of produce per month.
Our pilot project will utilize deep-water rafts to grow mint, basil and microgreens in Phase 1 without soil under LED lights in a controlled environment. Our business model below shows the ability to generate $414,000+ per month in Net Profit from both plant and fish sales.
Our grid-tie solution using renewable energy such as solar, battery backup and generators means that Fusion Farms will not be dependent on the power company and can minimize energy costs.
Tilapia housed in tanks outdoors will be the engine of nutrient-rich water to fuel the plant growth and deliver seed-to-harvest produce in as little as 21 days. Our carousel grow cycle means we can grow our produce year-round with consistent results.
Fusion Farms represents a "fusion" of innovation, talent, impact, urban farming, and food security for the island of Puerto Rico.
"We are standing"
Why Puerto Rico?
Post-Hurricane Maria, Puerto Rico imports 95% of its fresh produce.
With 30 inches of rain in some areas and wind gusts up to 175 mph, Maria devastated Puerto Rico's struggling agriculture. It is clear, Puerto Rico needs a new sustainable agricultural model to feed a population of over 3 million people.
Fusion Farms creates a solution for the island of Puerto Rico and for its communities that face environmental, climate and economic challenges, using a micro-grid, sustainable Controlled Environment Aquaponics (“CEA”) facility implementing vertical farming systems that use 1/10th of the water compared to traditional farming techniques.
Here are the main problems for which we have created this solution:
- 90% or more of the food consumed on the island of Puerto Rico is shipped in, traveling a minimum of 1,500 miles for weeks at a time.+
- 48% of the population live below the federally defined poverty line.*
- 27% of Puerto Ricans are on some form of government subsidies.*
- Puerto Rico Industrial Development Corporation (PRIDCO) has tens of millions of square feet of empty buildings, abandoned in the ongoing economic downturn.
- Ongoing economic crisis, no new jobs, intellectual flight from the island, 39% labor participation rate.**
- 80% of farms were destroyed by Hurricane Maria, just one of two devastating hurricanes where recovery still continues.
Fusion Farms has submitted an application to PRIDCO, which was approved on September 26, 2018. The application is to lease 11,500 square feet of a fully concrete, hurricane-protected industrial warehouse space to be converted to a micro-grid Controlled Environment Aquaponics facility in Mayagüez, Puerto Rico using renewable energy.
Fusion Farms is pioneering the urban farming solution for an island that is starving for food sovereignty. The impact this will have on the island is immeasurable.
We are grateful for the support you provide to make a difference in the agricultural climate and future for Puerto Rico.
We don't measure our day by the harvest we reap...
but by the seeds of hope that we plant.
Our Business is Sustainable Aquaponics
Fusion Farms (“FF”) combines elements of hydroponics, aquaculture and renewable energy in a fully contained and controlled environment. Sustainable Closed Environment Aquaponics (“CEA”) provides a unique combination of technologies and agriculture for the production of a variety of food products, as well as fish, in a CEA facility. Extensive scientific research on aquaponic ecosystems has paved the way for repeatable, scalable food production, which represents an innovative advance in the way food supplies will be grown in the future.
The most simple definition of Aquaponics is the combination of aquaculture (raising fish) and hydroponics (the soil-less growing of plants) that grows fish and plants together in one integrated system. The fish waste provides an organic food source for the plants, and the plants naturally filter the water for the fish. The third participants are microbes (nitrifying bacteria). These bacteria convert ammonia from the fish waste first into nitrites, and then into nitrates. Nitrates are the form of nitrogen that plants can uptake and use to grow. Solid fish waste is turned into vermicompost that also acts as food for the plants. In combining both hydroponic and aquaculture systems, aquaponics capitalizes on their benefits and eliminates the drawbacks of each.
The Offering
Investment
$10/share of Common Stock│When you invest you are betting the company’s future value will exceed $4.4M.
Perks
10% Bonus for Early StartEngine Shareholders
*Maximum subject to adjustment for bonus shares. See 10% Bonus below
"Our solution is the “fusion” of hydroponic growing of agricultural products combined with aquaculture of Tilapia based on the implementation of a comprehensive eco-system consisting of a self-sustaining, renewable, organic Controlled Environment Aquaponics (“CEA”)"
~ Kendell Lang, Founder
How Far We've Come...
As a startup, we have completed our market research, conducted a Feasibility Study, prepared our Business Plan, identified our initial property, negotiated our initial lease, designed the renovation of our initial property, negotiated strategic partnerships in support of our Business Plan, hired consultants to provide cost estimates for all aspects of the renovation, and retained our CPA to review and sign off on our financial projections. We are now ready to accept investment funding that will allow all this planning to be put into action.
We designed a system specific to the feasibility studies, energy needs and food production requirements for what is projected as to be a sustainable and profitable project. The plan includes the use of tilapia, floating rafts, vertical grow towers, rainwater collection, solar, and advanced technology controls.
We have drafted our initial 3D Design for the property; the image to the left provides a visual rendering of the proposed construction and layout.
Our financial projections included in the prospectus have been reviewed and signed by Lcda. Cynthia J. Rijo Sánchez, CPA/Attny.
We have the enthusiastic support of the University of Puerto Rico - Mayagüez and we are pleased that Dr. Rene Esteves and Dr. Luis Mejia are on our advisory board and they are integrating internships for their students from their Department of Agriculture.
Fusion Farms represents a "fusion" of innovation, talent, impact, urban farming, and food security for the island of Puerto Rico.
~Lisa Jander, Co-Founder
Our System
Based on the scale of the model and specs, the plan will include both indoor and outdoor facility use, including but not limited to:
Water use and conservation: Irrigation, flow design, rainwater harvesting
Vertical and horizontal grow designs
Fish farming tanks with observation windows
Testbeds for introducing new fruit and vegetable production.
Renewable energy use: solar and wind (grid-tie microgrid with battery storage)
Technology and automation
Community use: field trips, observation, research, events, tours, etc.
The Technology
The FF model is intended to create an efficient design based on the current elements, adding advanced technology through engineering rigor that will enhance performance and scalability.
Sensory and software components that automate the management and daily operation of the system will be included in this design. Data capture will play a vital role in the success of the model and FF will incorporate the most innovative technologies available within the budget allowed.
The Advantages of Our Pilot Program
By using the Fusion Farms model as a test facility to prove out an effective model, community members will benefit from the transparency of trial and error leading to success. Feasibility, cost containment, use of natural resources, data capture, research, and profitability will all be vital to a thriving program.
The system will be built onsite in Mayagüez with plans to expand to other parts of the island. Because these plans include creating a state of the art sustainable agriculture facility, Fusion Farms can be used to educate and instruct participants in the principles of sustainable agriculture as embodied in the model.
This will assist in the propagation of the model and attract those interested in sustainable agriculture who may have new and additional thoughts and ideas that can be integrated into the model design, creating dynamic sustainable knowledge and IP. This creates an additional revenue model for subscribers to benefit from updates on innovations and improvements.
Planting Timeline
Aquaponics allows crops to grow faster, year-round, using less water and minimal labor while minimizing crop failures. Fusion Farms, in the beautiful Mayagüez district of Western Puerto Rico, is the ideal location to use an existing concrete, hurricane-protected PRIDCO building to grow non-GMO produce high in local demand.
You now have the opportunity to own a share from a CEA facility growing these agricultural products. This is a complete turnkey, hands-off investment opportunity: you invest in the CEA operations but we handle the installation, planting, and harvesting. Our farm team then capitalizes on the maximum sales in the local marketplace through Distributor's, Farmer’s Markets, Direct to Consumer and through local Chefs and Restaurants.
Pilot – Year 1:
6 mint varieties – 45% Production
6 basil varieties – 45% Production
Microgreens – 10% Production
Whole Tilapia – Ancillary Product
Year 2 – reconfirm market demand and feasibility
Butter Lettuce
Cilantro
Plant fruit trees and Moringa
Living Bamboo wall along the perimeter
Year 3 – Develop outdoor expansion under hoops
Strawberries
Green beans
Chard
Peppers
Tomatoes
"The first wealth is health."
~Emerson
Market Supply and Demand
Current Distribution:
- Over 80% of fresh produce is imported
- Only 37% of farms in Puerto Rico have been restored since Hurricane Maria as of December 2018
- Over-inflated prices due to import fees and taxes
- Food often travels over 1,500 miles
- Food is depleted of nutrient value and is poor quality, as the photos to the left demonstrate
Current Demand:
Locally Grown
Non-GMO Organic standards
Better tasting
Farm-to-Table fresh products
Consistent quality
Stable pricing
New varieties
More nutritional value
Food Sovereignty
Easy Local Access
Food consumers can trust
Aquaculture
Outdoor fish farming is used to implement the most advanced sustainable methods of growing, producing and harvesting seafood.
We have chosen tilapia as our nutrient source to grow healthy produce without using chemicals or pesticides. Our fish will be located outside to minimize humidity and maximize food production space inside.
Though the tilapia is less than 5% of our revenue stream, it is our primary source of nutrient value for the plants we grow.
Renewable Energy
Solar
The power supply in Puerto Rico has proven to be unreliable and extremely costly. To provide a hurricane-protected facility, we will be using LED lights and other operational equipment which will be powered by solar, battery backup and diesel generators on a micro-grid system.
MICRO-GRID 400w Solar Power System on both the roof and the shade Pergola for the fish
Net-Zero Agreement with PREPA for autonomy and grid-connected backup
Solar battery storage
Diesel Backup generator
Supplement wind power generation considered when economically feasible through real-time data collection
Rainwater Collection
The application of an appropriate rainwater harvesting technology will make possible the utilization of rainwater as a valuable and necessary water resource. We will harvest rainwater to provide an additional water source for the fish tanks as well as the filtration system for the plants. The roof is designed to capture maximum rainfall to allow for water security when needed.
Food Distribution
Secured relationships with top, local distributors to deliver to restaurants and grocery stores in refrigerated trucks
Will pursue relationships with cruise lines
Will hire locals to distribute produce to farmers markets
Create membership for weekly deliveries through Social Media
Will use the excess to create canned goods such as mint jelly and pesto to ensure no waste
Will be positioned for exporting when economically viable
Will distribute excess to food banks on the island
Will pursue relationships with Costco, Walmart, Sam’s Club at optimum volume requirement.
Your Investment and Ours
Fusion Farms has taken every precaution to protect our investment and yours:
Qualified Opportunity Zone
Hurricane-protection in a concrete building
Energy autonomy using solar, battery and generators
Bio-secure netting to prevent pests and disease
Non-GMO practice to deliver nutritious produce without chemicals or genetic alterations
Flood protection – elevated building and fish tanks with high margin
University partnerships with University of Puerto Rico, Mayagüez, University of Arizona, Arizona State University and Santa Fe Community College in New Mexico
Providing Internships for agriculture students to employ and groom for Phase 2
Scalable for additional locations in multiple locations around the island
No import delays
Very few food miles from farm to table
Consistency through quality control and controlled environment
Providing jobs for Puerto Rico
Superior team to implement and grow a successful and profitable business model
Business Model and Investor Benefits
When construction is complete, our facility will have the following production capacity:
Indoor System:
- Vertical Rack Grow System (leafy green vegetables)
- 144 Total Racks, five (5) shelves per rack
- 80,640 Total Plant Capacity
- Three (3) Initial Agricultural Products;
- Basil (65 Racks with Capacity to produce 507,080 ounces per month)
- Mint (65 Racks with Capacity to produce 672,657 ounces per month)
- Microgreens (14 Racks with Capacity to produce 3,423 ounces per month)
Outdoor System:
- Fish Tanks (eight (8) fish tanks under shade)
- Each Tank is 4,000 gallons holding up to 750 Tilapia
- 6,000 Total Fish Capacity
- 800 to 1,000 Whole, Live Fish Capacity per month
Market Pricing:
- Basil – current market retail price $1.23 per ounce (wholesale price $0.65 per ounce)
- Mint – current retail price $1.25 per ounce (wholesale price $0.75 per ounce)
- Microgreens – current retail price $3.75 per ounce (wholesale price $3.50 per ounce)
- Fish – current retail price $2.00 per pound for whole, live Tilapia
Market Demand:
We have relationships with leading food distributors throughout Puerto Rico[i]*. We have substantiated market pricing (retail and wholesale), as well as market demand through these distributors who have confirmed the high market demand for our agricultural products from their customers.
| Revenue Capacity | Monthly | ||
| Basil | $329,601.99 | ||
| Mint | $504,492.84 | ||
| Microgreens | $11,979.55 | ||
| Tilapia | $3,921.88 | ||
| Sub-total Revenues | $849,996.25 | ||
| Cost of Goods Sold (34%) | $288,998.73 | ||
| Gross Monthly Profit (Loss) | $560,997.53 | ||
| Gross Monthly Margin (%) | 66% | ||
| General & Administrative Expenses (15%) | $127,499.44 | ||
| EBITDA (Monthly) | $433,498.09 | ||
| Financial Expenses | $2,083.33 | ||
| Monthly Profit (Loss) Before Taxes | $431,414.76 | ||
| Tax | (4%) | $17,256.59 | |
| Net Profit (Loss) | $414,158.17 | ||
| % Monthly Net Profit/Sales | 48% | ||
| Investors Return On Investment | |||
| Initial Investment | $107,000 | ||
| Investor Percent Ownership | 2.5% | $10,305.80 | |
| MONTHLY ROI | 9.6% | ||
So, when we achieve production at our full capacity, we project we will be able to generate revenues and resulting profits that show an annual return of $397 for every $430 invested, approximately 92% annualized ROI.
[i] *Sources: CLICK HERE TO VISIT REFERENCE PAGE
THE OFFERING MATERIALS MAY CONTAIN FORWARD-LOOKING STATEMENTS AND INFORMATION RELATING TO, AMONG OTHER THINGS, THE COMPANY, ITS BUSINESS PLAN AND STRATEGY, AND ITS INDUSTRY. THESE FORWARD-LOOKING STATEMENTS ARE BASED ON THE BELIEFS OF, ASSUMPTIONS MADE BY, AND INFORMATION CURRENTLY AVAILABLE TO THE COMPANY’S MANAGEMENT. WHEN USED IN THE OFFERING MATERIALS, THE WORDS “ESTIMATE,” “PROJECT,” “BELIEVE,” “ANTICIPATE,” “INTEND,” “EXPECT” AND SIMILAR EXPRESSIONS ARE INTENDED TO IDENTIFY FORWARD-LOOKING STATEMENTS, WHICH CONSTITUTE FORWARD LOOKING STATEMENTS. THESE STATEMENTS REFLECT MANAGEMENT’S CURRENT VIEWS WITH RESPECT TO FUTURE EVENTS AND ARE SUBJECT TO RISKS AND UNCERTAINTIES THAT COULD CAUSE THE COMPANY’S ACTUAL RESULTS TO DIFFER MATERIALLY FROM THOSE CONTAINED IN THE FORWARD-LOOKING STATEMENTS. INVESTORS ARE CAUTIONED NOT TO PLACE UNDUE RELIANCE ON THESE FORWARD-LOOKING STATEMENTS, WHICH SPEAK ONLY AS OF THE DATE ON WHICH THEY ARE MADE. THE COMPANY DOES NOT UNDERTAKE ANY OBLIGATION TO REVISE OR UPDATE THESE FORWARD-LOOKING STATEMENTS TO REFLECT EVENTS OR CIRCUMSTANCES AFTER SUCH DATE OR TO REFLECT THE OCCURRENCE OF UNANTICIPATED EVENTS.
Opportunity Zone
If you have generated a substantial capital gain from your investments in 2018 – congratulations! However, you may also be dreading the huge tax bill that’s coming your way.
The good news is that the introduction of Opportunity Zones by the Tax Cuts and Jobs Act in December 2017 can provide you with an investment vehicle to defer capital gain tax while using the funds from such gain to invest in opportunities like Fusion Farms.
As noted on the Grant Thornton April 18, 2018 Tax Alert, Puerto Rico was designated as a Qualified Opportunity Zone under the U.S. Tax Cuts and Job Act of 2017 (the “Act”). By providing for short- and long-term capital gains tax deferral and the potential for significant step-up in basis, the Act aims to spur long-term investments in low-income urban and rural communities throughout the U.S. and Puerto Rico by investing in a qualified opportunity fund.
Our Commitment
To implement a design in which all elements are preserved, re-used or recycle when possible
Use clean waste-to-energy for sustainable primary power/energy requirements creating a low carbon footprint
Focus on repeatable, scalable methods to expand commercialization of the model
Provide Puerto Rico with all-natural, non-GMO produce
Use green/advanced construction materials when available for use in a wide range of regions and environments.
Create a resource for community development and learning onsite
Follow “best practices” from upper-level management to all employees and staff.
Maintain all certification for food handling and food safety
Impact the Puerto Rican community by proving out a way to reach food sovereignty
Fusion Farms is dedicated to impacting Puerto Rico in a positive way; we are passionate about our farming solution and that there has been no better time to invest in the future of farming.
What Makes Our Team Special
Strategic Partners
University of Puerto Rico, Mayagüez:
Fusion Farms has partnered with Dr. Rene Estevez and his colleague, Professor Luis R. Mejia-Maymi at the University of Puerto Rico Mayagüez to assist with the design and operation of the Aquaponic system. Rene Esteves, PhD is currently serving a dual role as the Extension Leader for the University of Puerto Rico (UPR) Sea Grant College Program which is headed by Dr. Ruperto Chaparro. Dr. Esteves is also the Aquaculture Specialist for the UPR Agricultural Extension Service. Previously he’s served as Puerto Rico’s Fisheries Liaison for the National Marine Fisheries Service of the National Oceanic and Atmospheric Administration. Dr. Esteves is a coral reef fish ecologist whose research interests have focused on larval connectivity of commercially important fish species, changes to coral reef fish community structure due to disturbances and fisheries independent assessments. His double role in the UPR is in part meant to strengthen informal education in small sustainable recirculating aquaculture projects that would both increase food security and offer alternative income for low-income rural coastal communities.
University of Arizona:
Dr. Shane C. Burgess is Vice President for Agriculture, Life and Veterinary Sciences, and Cooperative Extension, Charles-Sander Dean of the College of Agriculture and Life Sciences, and Director of the Arizona Experiment Station at the University of Arizona. He has 188 refereed publications, trained 38 graduate students and has received nearly $55M in competitive funding since 1997. His division has a total budget of $135M with over 3,900 students and more than 1,700 employees. He currently serves on the Agri-Business and Water Council of Arizona Executive Committee, the Board of Directors for Arizona Farm Bureau, and the Governor’s Agricultural Best Management Practices Committee for the Arizona Department of Environmental Quality.
“We need to grow food,” said Pedro Casas. “It doesn’t matter how but we need to grow it. If we don’t teach our kids these things you don’t turn that spark on. Education about agriculture was and still is very low on the island, we need to get into the schools.”
Operational Farm Design Consultants:
Fusion Farms has been working with Jorge Casas to focus on the day-to-day operations of the CEA Farm. Jorge and Pedro were successfully operating one of the largest CEA Greenhouse facilities in PR until it was destroyed by Hurricane Maria.
Jorge understands what it takes to operate an aquaponics farm and will be helping us recruit interns and new hires and make sure they are trained. The entrepreneur brothers set up an expanding distribution network to serve themselves and dozens of other farmers around the island and to help drive the food revolution. With the farming boom comes more farm laborers, drivers and retail workers, and urban produce markets are opening up across Puerto Rico. One such, O-Mrkt in the San Juan suburbs, opened in April 2016 with the Casas brothers as partners.
Tropical Fruit Farm Design Consultant:
Fusion Farms has been working with Sadhu Govardhan, founder of Goverdhan Gardens to focus on the unique challenges of growing tropical fruits native to tropical ecosystems in and around a CEA facility. Sadhu Govardhan is an independent thinker, eco-organic farmer, tropical rare fruit connoisseur, bamboo specialist, and researcher. Sadhu will provide inputs into crop selection for maximum diversification, as well as assist us in designing a living bamboo wall for shade and security.
Aquaculture Design Consultant
Fusion Farms has been working with Dr. Mike McGee of Caribe Fisheries, Inc. to design the fish component of the system. Fusion Farms will be working with Caribe Fisheries to supply the hatchlings and original Tilapia stock for our CEA.
Dr. McGee owns and operates Caribe Fisheries Inc. a tropical aquaculture farm in Lajas, PR. He is involved in all phases of aquaculture and particularly those which may be important to improving productivity and quality of life in PR. Most recently he introduced a new aquaculture species to this hemisphere, the Basa catfish. Puerto Rico is currently the only nation in the western hemisphere to culture this food fish. Exports from Vietnam to other countries of the world are over $1,000,000,000 a year and there is good potential in all tropical regions of the western hemisphere to culture this valuable species(1). He also offers training and workshops related to aquaculture. He is working with Fusion Farms and other institutions to increase awareness of aquaculture in PR.
Dr. Michael V. McGee has extensive experience and training in the areas of aquaculture, aquatic ecology, water chemistry and fisheries science. For the past 18 years he has successfully developed and operated his own aquaculture-agriculture business Caribe Fisheries Inc, located in the Lajas Valley. Caribe Fisheries produces ornamental and food fish species, freshwater shrimp, aquatic plants, vegetables and herbs for sale in Puerto Rico.
Lcda. Cynthia J. Rijo Sánchez, CPA / CR Law & Accounting Services
Cynthia J. Rijo Sánchez is a Lawyer, Notary Public and Certified Public Accountant in the Commonwealth of Puerto Rico.
She obtained her Bachelor's Degree in Business Administration with a concentration in Accounting from the University of Puerto Rico, Mayagüez Campus, graduating with Magna Cum Laude honors. She obtained her Juris Doctor at the Interamerican University of Puerto Rico graduating with honors Summa Cum Laude.
After working for 3 years in Virginia, as an auditor for the Department of Defense of the United States and having participated in several internships, Cynthia opened her private practice during the month of February 2014. Since then she has provided legal and accounting services to individuals, companies, churches and other nonprofit organizations.
She is currently the President-elect of the Association of Certified Public Accountants of Puerto Rico of the Mayagüez Chapter.
Invest in Fusion Farms Today!
Understanding the Opportunity
We believe it's possible to make high returns per square foot with a variety of crops. Please see our CPA reviewed and signed financial projections to understand our financial model. More importantly, the food produced will be fresh, natural, nutritious and grown locally.
Feasibility studies will determine the best crop for the island as well as the system. Many factors will influence the system design as well as the food production outputs. Faster growing times with year-round production will greatly enhance the ability to deliver wholesome foods to the communities in Puerto Rico including restaurants, grocery stores, farmers markets, and other retail distribution.
We Will...
- Create a farm in a building
- Bring people and communities together
- Regenerate unused real estate
- Create viable examples of Urban Agriculture
- Create a "nothing is wasted" approach
- Create lower energy solutions to manufacture, transport and maintain sustainable food supplies; all with a smaller carbon footprint
- Create as many outputs as possible from minimal inputs
- produce alternative plant food sources fish in proteins and other powerful elements
- Connect food sources with nutraceutical alternative for homeopathic and herbal medicine
- Reconnect people with growing food; excite, inspire and engage!
Thank you for being a part of our journey and for helping to make this venture a success!
We believe indoor aquaponics is disruptive and forward thinking and will create new opportunities for Puerto Ricans to learn a different farming model that minimizes the impact of external conditions in order to grow the fresh produce the island needs.
If Puerto Rico were able to replace 90% of its agricultural imports with locally grown produce, it would represent about $3.15 billion that would stay in the island’s economy and around 85,000 new jobs in the agricultural sector.
By using the Fusion Farms model as a test facility to prove out an effective model, community members will benefit from the transparency of trial and error leading to success. Feasibility, cost containment, use of natural resources, data capture, research, and profitability will all be vital to a thriving program.
Offering Summary
Company | : | Fusion Properties Management Group, Inc. d/b/a Fusion Farms |
Corporate Address | : | 2009 Calle Jaime Rodriguez, Mayagüez, Puerto Rico 00682 |
Offering Minimum | : | $9890.00 |
Offering Maximum | : | $1,070,000.00 |
Minimum Investment Amount(per investor) | : | $100.00 |
Terms
Offering Type | : | Equity |
Security Name | : | Common Stock |
Minimum Number of Shares Offered | : | 1,000 |
Maximum Number of Shares Offered | : | 107,000 |
Price per Share | : | $10.00 |
Pre-Money Valuation | : | $4,300,000.00 |
*Maximum subject to adjustment for bonus shares. See 10% Bonus below
On April 17, 2019, Fusion Properties Managment Group, Inc. (d/b/a Fusion Farms) filed an amendment increasing the authorized shares of Common Stock of the Company from 20,000 to 860,000. At same time, the Company effected a 43:1 stock split, increasing the pre-offering shares outstanding from 10,000 to 430,000.
All shares issued in this Offering at $430 per share prior to April 17th were included in the stock split, and as a result of the stock split, will own 43 shares of common stock for each share purchased prior to the amendment, resulting in the same percent of ownership of the Company.
All shares sold in the offering subsequent to the amendment will be sold at a price per share of $10.
The pre-money valuation of $4,300,000 has not been affected by this corporate action.
The 10% Bonus for StartEngine Shareholders
Fusion Properties Management Group, Inc. will offer 10% additional bonus shares for all investments that are committed, within 24 hours of this offering going live, by StartEngine Crowdfunding Inc. shareholders who invested over $1,000 in the StartEngine Reg A offering which closed earlier this year.
StartEngine shareholders who invested $1,000 or more in that StartEngine Reg A offering will receive a 10% bonus on this offering within a 24-hour window of this offering’s launch date. This means you will receive a bonus for any shares you purchase. For example, if you buy 10 shares of Common Stock at $430 / share, you will receive 11 Common Stock, meaning you'll own 11 shares for $4,300. Fractional shares will not be distributed and share bonuses will be determined by rounding down to the nearest whole share.
This 10% bonus is only valid for one year from the time StartEngine Crowdfunding Inc. investors received their countersigned StartEngine Crowdfunding Inc. subscription agreement.
Irregular Use of Proceeds
The Company will not incur any irregular use of proceeds.
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Most recent fiscal year-end:
Prior fiscal year-end:
Total Assets
$9,500.00
USD
$5,000.00
USD
Cash And Cash Equivalents
$0.00
USD
$5,000.00
USD
Accounts Receivable
$0.00
USD
$0.00
USD
Short Term Debt
$0.00
USD
$0.00
USD
Long Term Debt
$0.00
USD
$0.00
USD
Revenues And Sales
$0.00
USD
$0.00
USD
Costs Of Goods Sold
$0.00
USD
$0.00
USD
Taxes Paid
$0.00
USD
$0.00
USD
Net Income
-$750.00
USD
$0.00
USD
Risks
A crowdfunding investment involves risk. You should not invest any funds in this offering unless you can afford to lose your entire investment. In making an investment decision, investors must rely on their own examination of the issuer and the terms of the offering, including the merits and risks involved. These securities have not been recommended or approved by any federal or state securities commission or regulatory authority. Furthermore, these authorities have not passed upon the accuracy or adequacy of this document. The U.S. Securities and Exchange Commission does not pass upon the merits of any securities offered or the terms of the offering, nor does it pass upon the accuracy or completeness of any offering document or literature. These securities are offered under an exemption from registration; however, the U.S. Securities and Exchange Commission has not made an independent determination that these securities are exempt from registration.
Updates
Fusion Farms Shareholder Update
8 days agoDear Fusion Farms Friends, Family, Shareholders, and Supporters,
PRIDCO SOLAR GRANT CONTRACT SIGNED!
I know many of you are wondering about the status of our PRIDCO Solar Grant Contract, especially given all the delays and "corrections" which caused more delays. I'm happy to report that yesterday I received a fully counter-signed copy of the Solar Grant Contract signed by Secretary Laboy!!! Because this has been the source of concerns and questions about all the delays, we want to let you know that THIS IS NOW DONE!!!
NEW PROJECT TIMELINE
Here is an updated summary of our projected timeline moving forward assuming our bank loan is approved and funded.
It is our goal to get a minimum of $100,000 into the company this month, and with Investor commitments totaling $352,500 right now, we hope to have that completed shortly. That is the minimum amount required to meet the financial ratio required by the bank. With that equity in the bank, we have a verbal approval for our $1 million loan. We have every reason to believe it will be formally approved and funded (I have met the bank President personally, as well as the VP, the senior loan officer and the risk manager), now that we have the PRIDCO Solar Grant Contract signed.
Let's assume it takes them 30 days to process the loan, prepare all the loan documents, and make funds available. That puts us at the end of March. With those funds available, we can then immediately sign contracts for the steel racks, grow troughs, LED lights, HVAC, Solar Power system, Fish Tanks, Water Cisterns and all the related plumbing, electrical, equipment and supplies. We have all the designs completed, the vendors identified, the purchase contracts negotiated, shipments ready to be placed...all pending payment. The long lead items coming from China will take between 6 to 12 weeks to arrive in our building, so let's be conservative and say 3 months, so that puts us at the end of June when all the materials are on-site and we're ready to commence construction.
We have all the crews identified to complete the installation for all the various systems. The long-lead timeline for installation is the Solar Power system, which the installer has said will take 90 days to install, test, configure, balance and bring live. That brings us to the end of September which is when we will be able to put water in the system, balance the water, put fish in the tanks, test water quality and let the system calibrate for another 30 days.
That estimate puts us at the end of October to put plants into grow trays which would have already been germinated and ready for transplant into net pots which would then be planted in the grow trays and put into the Deep Water Culture grow troughs. Depending on the crop, we would then expect our first harvest to be approximately 30 days later, so our first harvest would potentially be in November of 2020.
Because we have a Carousel Grow Schedule giving us the ability to rotate our system and harvest on a weekly basis, we won't get to full capacity until 1 month after our first harvest, so we would expect to be at full capacity by the December of 2020, not quite a year from now :).
The timeline for closing is flexible right now, but it is going to be based on how quickly we can get at or above the $100,000 in collected investor funds. We are excited that some large $50k and $100k investors have come forward so we're probably going to close shortly after achieving the minimum $100k.
REMINDER - NOTICE OF ANNUAL MEETING OF SHAREHOLDERS & OPEN HOUSE
Please remember that we previously sent this: NOTICE IS HEREBY GIVEN that an annual meeting (the "Meeting") of the shareholders of Fusion Properties Management Group, Inc., d/b/a Fusion Farms (the "Corporation") will be held on February 22, 202020 at 11:00 a.m. Atlantic Standard Time at the corporate headquarters, which is located at 2025 Calle Jaime Rodriguez Mayagüez, Puerto Rico 00682.
Please go to our Facebook Event Page to RSVP. This is an invitation-only OPEN HOUSE event and we will be serving hand-crafted salads made directly from Fusion Farms produce harvested the day of the event, so it is important for our planning purposes to know whether you will be attending or not.
Best personal regards,
Kendell Lang CEO
Fusion Farms PR
2025 Calle Jaime RodriguezMayagüez, Puerto Rico 00682
Kendell Lang CEO
Fusion Farms PR
2025 Calle Jaime RodriguezMayagüez, Puerto Rico 00682
(M) 760.445.3315
CEO@FusionFarmsPR.com
CEO@FusionFarmsPR.com
PUT CEO@FusionFarmsPR.com Email on Your White List
12 days agoHello All,
It has come to our attention that some of our direct email updates to shareholders are being bounced back by users of outlook.com, hotmail.com, live.com so please add ceo@fusionfarmspr.com email ID in your contact book/whitelist so that our emails can be delivered to you!
Add the address to your safe senders
- Click the cog icon in the top-right corner and then More mail settings.
- Select Safe and blocked senders and then Safe senders.
- Add add the domain of the email you want to whitelist to the list of Safe senders.
You can go to this article which provides specific instructions for a variety of providers:
https://www.lifewire.com/how-to-whitelist-email-addresses-4588603
Best regards,
Kendell Lang
Fusion Farms Annual Shareholder Meeting Notice and Investor OPEN HOUSE
19 days agoFUSION PROPERTIES MANAGEMENT GROUP, INC., d/b/a Fusion Farms
2025 Calle Jaime Rodriguez
Mayagüez, Puerto Rico 00682
NOTICE OF ANNUAL MEETING OF SHAREHOLDERS & OPEN HOUSE
NOTICE IS HEREBY GIVEN that an annual meeting (the "Meeting") of the shareholders of Fusion Properties Management Group, Inc., d/b/a Fusion Farms (the "Corporation") will be held on February 22, 202020 at 11:00 a.m. Atlantic Standard Time at the corporate headquarters, which is located at 2025 Calle Jaime Rodriguez Mayagüez, Puerto Rico 00682.
Please go to our Facebook Event Page to RSVP. This is an invitation-only OPEN HOUSE event and we will be serving hand-crafted salads made directly from Fusion Farms produce harvested the day of the event, so it is important for our planning purposes to know whether you will be attending or not.
At the Meeting, each of the shareholders of the Corporation (collectively, the "Shareholders"), will be asked to consider the following (collectively, the "Resolutions"):
a) an ordinary resolution (i.e., requires a majority of votes cast by counting all votes) to increase the valuation of the company for financing purposes;
b) an ordinary resolution (i.e., requires a majority of votes cast by counting all votes) to form a new subsidiary to operate the business activity associated with the recently obtained Hemp License; and
c) an ordinary resolution (i.e., requires a majority of votes cast by counting all votes) to approve the audited financial statements of the Corporation prepared by CR Law & Accounting.
Due to recent events which have transpired, Kendell Lang (as majority Shareholder of the Corporation) wishes to propose the increased valuation of the company, and in connection with certain investment offerings intended to be presented to prospective investors by the Corporation, Kendell Lang wishes to increase the valuation of the Corporation to accommodate the raising of additional investment capital for the Corporation.
Fusion Farms has recently obtained a Hemp License from the Department of Agriculture of Puerto Rico and, Kendell Lang (as majority Shareholder of the Corporation) wishes to propose the formation of a new subsidiary entity into which this Hemp License shall be contributed.
Shareholders may also be asked to consider and transact such other business as may properly come before the Meeting and at any adjournment thereof.
This NOTICE is being given electronically to the directors and to the corporate secretary of Fusion Farms, and by email to all registered shareholders of Fusion Farms and to the registered office of Fusion Farms (who is hereby requested by Kendell Lang to deliver the contents hereof to the Auditor of Fusion Farms forthwith).
Attached to this email is our most recent Executive Summary of Activity and Accomplishments to date.
I know many of you are wondering about the status of our PRIDCO Solar Grant Contract. I'm happy to report that I personally drove to San Juan this past Monday and went to PRIDCO and signed the Solar Grant Contract. I was told that it was signed by the Director, but then yesterday I got a call from Anthony indicating that there was an error on the document which needed to be corrected before the contract could be finalized, signed and registered with the Incentives Department.
I met with Anthony Cordona, our business rep from PRIDCO, this afternoon in Aguadilla, signed the revised contract and he is taking it back to San Juan to be initialed, signed by Secretary Laboy and then submitted to the Incentives Office to be registered. Once that is done, they will send me the fully executed Contract which I will submit to the banks which are holding our Loan Applications pending this signed Contract.
I hope to be able to report by Friday that I have a signed and fully completed Contract in my possession and that our bank loan applications are moving ahead!
Shareholders may participate in this meeting by any means of communication by which all persons participating in the meeting can hear each other during the meeting, and participation by such means shall constitute presence in person at a meeting. If you would like to attend the meeting via Zoom Video Conference, please reply to this email and we will provide instructions for attending the meeting via video conference.
A quorum shall exist at any meeting of shareholders if a majority of the votes entitled to be cast is represented in person or by proxy.
Shareholders may delegate or cast votes on motions under items on the agenda of any type of general meeting by post, electronic correspondence or any other form of distance communication, provided the identity of the persons exercising their right to vote is properly substantiated. Shareholders are authorized to cast votes on the above resolutions by replying to this email.
Dated as of the 29th day of January 2020.
FUSION FARMS
Best personal regards,
Kendell Lang CEO
Fusion Farms PR
2025 Calle Jaime RodriguezMayagüez, Puerto Rico 00682(M) 760.445.3315
CEO@FusionFarmsPR.com
We don't measure our day by the harvest we reap but by the seeds of hope that we plant.
CONFIDENTIALITY NOTICE: This email message is for the sole use of the intended recipient(s) and may contain confidential and privileged information. Any unauthorized review, use, disclosure or distribution is prohibited.
Kendell Lang CEO
Fusion Farms PR
2025 Calle Jaime RodriguezMayagüez, Puerto Rico 00682(M) 760.445.3315
CEO@FusionFarmsPR.com
We don't measure our day by the harvest we reap but by the seeds of hope that we plant. CONFIDENTIALITY NOTICE: This email message is for the sole use of the intended recipient(s) and may contain confidential and privileged information. Any unauthorized review, use, disclosure or distribution is prohibited.
Fusion Farms - Ongoing Progress Updates
7 months agoTo our IMPACT Investors, Friends, Followers, and Supporters,
Thanks again for all the support on this amazing journey! We couldn't be here without you.
We realize there are some of you who tried to invest, but for reasons not totally clear, we're trying to work out with Startengine why you've not been able to complete your investment. If you have not been successful in completing your investment or have had challenges with your transaction, please send me an email at CEO@FusionFarmsPR.com and I'll try and get it sorted out with Startengine.
Remember, you should have received a CLOSING confirmation or a message saying you needed to take some further action, so if you have not received your share purchase confirmation, please log in and check your account status.
As we go forward, we're going to be keeping everyone updated via direct email and through our social media accounts. Depending on which social media site(s) you prefer, we certainly want to encourage staying connected with us at:
- Our website is https://www.fusionfarmspr.com/
- Please Like us on facebook.com/FusionFarmsPR
- Please connect with us on linkedin.com/company/fusion-farms-pr
- Please follow us on twitter.com/fusionfarmspr
- Please follow us on instagram.com/fusionfarmspr/
- Please Like our videos at vimeo.com/fusionfarms/
If you have been following us on this Campaign but didn't invest and would like to continue receiving updates, please send me your contact information at CEO@FusionFarmsPR.com and we'll be glad to add you to our contact list.
Again, we express our heartfelt thanks to each one who has participated in all forms. We express our personal gratitude for those who have invested with us, not just in dollars, but also in following, commenting and supporting us across the Fusion Farms social footprint. Your involvement, comments, encouragement, and support has been inspiring to us in this journey.
Your support is foundational to the Fusion Farms Business Plan, so thank you!
Best personal regards,
Kendell & Lisa
Fusion Farms
Fusion Farms Closing THANK YOU!
8 months agoOur hearts are full as we come to the close of the Fusion Farms Online Public Offering.
We have been richly blessed by all the IMPACT Investors, Friends, Followers and Supporters. We express our heartfelt thanks to each one who has participated in all forms. We express our personal gratitude for those who have invested with us, not just in dollars, but also in following, commenting and supporting us across the Fusion Farms social footprint. Your involvement, comments, encouragement and support has been inspiring to us in this journey.
We live at a time when the future of Puerto Rico is bright and full of opportunity. Although we have found ourselves swimming against the current of entrenched inefficiencies and sometimes it seems as though the current could carry us away, we have found great comfort from the continued support of everyone who has thanked us and encouraged us in our pursuit of Food Sovereignty for Puerto Rico.
How grateful we are that the opportunities ahead are indeed open, that the opportunity of achieving a small piece of the food security puzzle for this beautiful Caribbean Island is within sight, and that your involvement has made that possible.
Now, as we move to the next stage in our Project Opportunity, we invite each of you to stay involved and continue to share the message of Fusion Farms.
We would ask that you remember us in your prayers! May God give us the strength, the ability, and the determination to play our part on the path He has put in front of us.
Your support is foundational to the Fusion Farms Business Plan, so thank you!
Last Few Hours To Invest In Fusion Farms!
8 months agoFor those of you who have not yet invested, please act today. There are only a few hours left before our Campaign closes. Thank you to all those who are currently committed!
We are seeking IMPACT Investors who are interested in clean, green, renewable energy and agriculture investments. We want investors who are "philanthropically" oriented to "Do Well By Doing Good" and they should be sensitive to environmentally sustainable food and water solutions.
Your OPPORTUNITY is; an investment of just $100 to a maximum of $100,000 to own a piece of Fusion Farms that is changing the food security of Puerto Rico. Fusion Farms is also a Qualified Opportunity Zone Fund Investment, as well as a Qualified Small Business Stock, both of which are substantial benefits to investors who want to shelter or reduce their capital gains tax.
AN OPPORTUNITY FOR PUERTO RICO INVESTMENT: Will you help us build a community of environmentally sensitive investors for Fusion Farms Puerto Rico? We have developed proprietary Aquaponic systems which will change Puerto Rico’s dependency on imported foodstuffs forever.
In order to invest, you need to go directly to https://www.startengine.com/fusionfarms and register there. You can then download our Offering Memorandum which is our Form C which has been filed with the SEC. You can complete your purchase online using a credit card, ACH, wire transfer and they also accept Bitcoin and Ethereum as forms of payment.
We look forward to welcoming you as our newest Fusion Farms IMPACT Investor, so please make sure you make your purchase before we CLOSE our Offering on July 3, 2019!
Thanks again for considering our Opportunity and for your support!
Q&A Interview with Fusion Farms
8 months agoHere is the script from a soon-to-be-published interview done by a major publication:
QUESTION: Mr. Lang, what is the concept behind Fusion Farms?
ANSWER: Fusion Farms is a hurricane-protected, aquaponic vertical farm that is proving out a piece of the puzzle for a solution to Food Sovereignty for the Caribbean island of Puerto Rico.
QUESTION: What does that mean day-to-day at Fusion Farms?
ANSWER: What that means is that we are proving out new urban farming inside of a hurricane-protected building. We have a vertical rack structure in soil-less growing conditions, and provide nutrient-rich hyper-local fruits and vegetables to the local market. That means our produce does not have to be shipped fifteen hundred miles from the US or other places, which is currently the case. Right now, 97% of the food that is consumed on the island of Puerto Rico is shipped in from other places around the world, predominantly the US. There are fifteen hundred food miles that the food has to travel. By the time it gets to Puerto Rico the nutrients are basically gone and it has been sitting on the docks for two weeks and gone through containers and been subjected to pesticides, preservatives and all kinds of issues.
QUESTION: Is the farming part well-known and viable, and is the added value you are able to have a hurricane-protected building?
ANSWER: The value-add that we are creating is, in fact, the hurricane-protected piece of the puzzle. We are re-purposing a dormant asset of the Puerto Rico government, which are hundreds of buildings and 25 million square feet of buildings throughout Puerto Rico, many of which are vacant or abandoned. We are taking that asset and converting it into revenue-generating, job-creating, property-tax generating solutions where the technology of urban farming is not the risk in the equation. Aquaponics is being done thousands of times around the world and the science behind aquaponics has been around for four thousand years. We are not necessarily reinventing the wheel of aquaponics and vertical farming, which has been successfully done elsewhere. What we are unique in is putting it into a hurricane-protected solution, specifically to the circumstances in Puerto Rico.
QUESTION: Would you explain that solution?
ANSWER: As an example, our pilot project in Mayaguez, is an eleven thousand five hundred square foot, concrete warehouse building on 1.47 acres. That building was constructed in 1961 and has survived all of the hurricanes from George to Urma, to Maria, and is standing and intact virtually untouched by all of those catastrophic events. It has survived Hurricane Maria which was in recent history the strongest climatic event recorded by anybody in our generation. That building as an example, we are converting into an indoor urban aquaponic farm with racks, grow troughs, feed trays, where we are putting LED grow lights and we have a completely controlled environment, agricultural solution, inside that building. We will be producing a high volume of leafy green vegetables. In this case, we going to be growing micro greens, mint and basil and we will be producing it where we are going to be harvesting on a 21-28 day growth cycle.
Because of the urban farming techniques, we are able to increase the yield so we are nine to twelve times what a traditional farm would generate in the same square footage. We are much more efficient and we use 10% or less of the water than traditional farming. We have completely organic standards that we are growing to, which means we have no herbicides, no pesticides, and no chemicals. That is because aquaponically, the water that is feeding the nutrients to the plant, comes from Tilapia that are grown in fish tanks, and when they “do their business” it takes ammonia in the water and it is converted naturally through bacteria processes, into nitrates and nitrites, and it is those nutrients that are absorbed by plants, then the plants clean the water and it is circulated back to the fish. It is a controlled environment agricultural or CEA structure.
QUESTION: Why is local food production important and isn’t there more to consider than freshness?
ANSWER: We support and believe in hyper-local produce production, but not for the reasons or arguments most people make. Our rational has to do with the actual nutrient value of produce and what "Food Miles" do the real nutritional value of food when it spends weeks in a truck or container and is moved halfway around the globe. Nutritional science indicates eating not only local, but immediately, is one of the healthiest ways to go. Here's an interesting fact most people don't know; the highest nutrient value in spinach is Vitamin C, but 90% of the Vitamin C in spinach is GONE within 24 hours of harvest! That means if you're not eating spinach the day of harvest, you're not getting the real nutrient value that your body craves. University of California studies shows that vegetables can lose 15 to 55 percent of vitamin C, for instance, within a week. More generally, most produce loses 30 percent of nutrients three days after harvest, so eating "fresh" hyper-local means you actually have to eat it in what we like to say as a "Seeds To Tables" approach which implies that you have the ability to eat what is freshly harvested without dealing with long-distance transportation, preservatives or shelf-life.
Our philosophy of "Seeds To Tables" means that you purchase or harvest greens when you plan to eat them and eat them while they’re still fresh and the leaves have not wilted.
The three natural destroyers of vitamins in fruits and vegetables are heat, light, and oxygen. Nutrients in fruits and vegetables start to break down after harvest. Even after picking, fruits and vegetables remain alive. It's that very quality, however, that contributes to spoilage and loss of nutrients. After picking, fruits and vegetables continue to breathe. This process, called respiration, breaks down stored organic materials, such as carbohydrates, proteins, and fats, and leads to loss of food value, flavor and nutrients. Produce will lose heat from this respiration as well as moisture, which is one of the ways nutrients are lost. The longer produce has to breathe before it is consumed, the less likely it is to retain nutrients. The Harvard Medical School Center for Health and the Global Environment notes that food transported long distances is not likely to be as nutritious as food grown and consumed locally. Another potential source of nutrient loss has to do with whether produce was ripe at the time it was picked. Climacteric crops, such as tomatoes, can be picked before full ripeness. The fruit may attain full color after picking, but it will not attain the highest nutrient levels. According to the Harvard Medical School Center for Health and the Global Environment, total vitamin C has been shown to be higher when the tomato is picked ripe from the vine.
The Center for Health and the Global Environment recommends choosing produce that is as fresh as possible. If you can't grow your own, look for local farms or growers. The center also notes that buying locally increases the chances of nutritional diversity and decreases the amount of handling, since local produce is commonly picked by hand rather than machine. Minimal handling means less chance of contamination, which can increase the rate of decay.
So, the ultimate "right answer" is to find growers as close to where you're consuming produce as possible.
QUESTION: What is it about the building that has shielded it from hurricanes?
ANSWER: The beauty of construction in Puerto Rico for industrial and commercial buildings is that they are designed to withstand hurricanes, so if you think about San Juan, which is a population of three million people, high-rise buildings, hotels and residences, the majority of the construction standards for those types of buildings, is concrete, so it is reinforced, steel rebar with concrete construction that is designed to withstand 300 mph winds. The fastest recorded winds for hurricane Maria were something like 270 mph. The nature of the construction was designed to withstand those particular events because the Caribbean every year is prone hurricanes. That recurring climatic event is anticipated and designed into the building design codes and zoning requirements. The buildings during Hurricane Maria were predominantly left intact. There were wood-stick structures, tin roofs, vegetation or greenhouses which were devastated by Hurricane Maria, but the majority of the catastrophic damage was in vegetation and structures that were not designed to withstand hurricane-force winds.
QUESTION: It has always been possible? Why has it never been done?
ANSWER: The beauty is that these buildings have been proven to be hurricane-resistant. We do not say hurricane-proof because nothing is hurricane-proof. However, these buildings have survived all of those catastrophic events. The technology exists, it is just nobody has ever put this particular use inside these buildings. Now Puerto Rico, because of tax incentives that expired in the pharmaceutical industries over the last decades, has an economic problem that caused these buildings to become vacant, though in that vacancy they became deferred maintenance or vandalism, they have just been sitting empty so there is tremendous glut of abandoned buildings all over the island for economic reasons. What we have done is create and take advantage of the attention that the hurricane had brought to the island. Here is how we solve that problem, we take a dormant or unused asset of the Puerto Rico government and convert it into a high revenue-generating job-creating business model and we can now populate hundreds of buildings with this solution that solves not only the real estate problem for the government of Puerto Rico but it also solves the food sovereignty problem and it creates jobs in the process.
When Governor Ricardo Rosselló Nevarez was elected, they put together their top ten initiatives to fix the economic engine that is broken in Puerto Rico and lots of bad press about the debt structure and the corruption and all the challenges that Puerto Rico has had. The Rosselló administration is doing an excellent job of taking this catastrophic event of Hurricane Maria and turning it into an opportunity to use the resources that have been made available to Puerto Rico in the form of federal dollars for reconstruction. They have said they are not going to just rebuild the way it has been done for hundreds of years, they are going to use the funds and the opportunity to recast the vision of Puerto Rico to be a world leader and to be the stepping-off point to connect the Americas because of its geographic position and its bilingual structure and heritage of being a US territory. Yet with such a strong connection to the Latino community through Central and South America, it is a natural gathering point for being this new thoroughfare for business throughout the Americas.
There are huge incentives they have created and huge plans that they have. The number one initiative for job creation and solving this economic issue is agricultural which right now is less than 1% of the GDP of Puerto Rico. That means that the 97% of the food is imported and Puerto Rico is a Net Importer of foodstuffs. When we are able to shift that to just 80% of produce being grown on the island that is $3.5 billion economic turnaround and that becomes an economic driver that creates 88 thousand jobs on the island as well as using all this real estate. That positions Puerto Rico to become a Net Exporter with revenue-generating real estate instead of dead assets on the books of the government.
QUESTION: When did you recognize that this was possible?
ANSWER: I first started coming into Puerto Rico in 2016. I had been researching and looking at aquaponics as the farming solution for the world’s food crisis. If you look at the global food supply and population, there is a disconnect that any number of worldwide organizations and research organizations have documented that there is not enough land in the traditional agricultural structure to provide the food supply for what will soon be a nine billion headcount for population. Food and water become the new gold, and in that structure, you have to look at doing things differently. Agriculture and traditional farming have not changed in a hundred years. If you look at the growth in mega farming, it is soil based and adding preservatives and chemicals that is actually bleaching the soil. There is an excellent book called The Empty Harvest, which talks about the problems of mega farming. I have been researching for a long time on how we can create urban farming solutions that keep food production local which is how it used to be and how it still remains predominantly for example in Italy today.
If you go to Italy and go to restaurants there, you are eating naturally organically grown foods that are coming out of the ground in the season that they have been planted, they are not mega farms, they do not have chemicals or preservatives, they are eating what comes out of the ground naturally, so you do not have any GMO food. You do not have gluten intolerance problems in their society as we do in the US, for the simple reason that on the GMO side, it has not been to our population’s favor. My research has motivated me to look at the possible solutions for urban farming, and the vertical reuse of real estate was a natural progression of that. My wife and I actually relocated and became residents of Puerto Rico in 2018, and that was after having come here since 2016 and seeing that we actually could implement a solution that did not have all of these pieces of the puzzle. For example, we looked at Costa Rica as a potential place to relocate to but Costa Rica does not have hurricanes, they have tremendous farming solutions on a local basis. They are food sovereign. They have solved their agricultural issues, they do not need our help.
Puerto Rico needs tons of help, it does not have a solution for food sovereignty. It is critical that this island nation become an exporter of foods, not an importer of foods. By becoming an exporter of foods, the implicit understanding is that you then become self-sufficient and you use enough food that you consume it yourselves, then you have excess and you become an exporter. That has been a long way around saying that I have been looking at this for a long time but it was really Hurricane Maria that was the capstone to the problem and it really became that cornerstone discussion that got global attention where we now have a lot of eyes on this project. There is funding available for something that is very expensive because there is a one-time upfront cost that is extraordinary compared to traditional farming. When we prove this out from a revenue generation standpoint, it will more than justify and make investors very happy with the return on investment for this type of new urban farming. We have to prove it out and that is the purpose of us coming to Puerto Rico.
QUESTION: Where are you in the process of Fusion Farms today and what is your timetable going forward?
ANSWER: We have completed our business plan. We have put together our advisory board and have a world-class team of advisors, both technical and agricultural. We have strategic partnerships with the University of Puerto Rico in Mayaguez, as well as have a private public partnership with the University of Arizona and their CEA or Controlled Environment Agriculture team. We have the partnership with Caribe Fisheries, which is a thirty-year operator of an aquaculture system here on the island that is going to be providing us with tilapia. We have two brothers who were operating an aquaponics business on the island in a greenhouse before Hurricane Maria, but that was completely destroyed during Hurricane Maria and they had to abandon that because they had no financial way to restore it. We brought them on our team. We have both an advisory team, advisory board and management team in place. We have also completed all of our filings so we are a corporation in good standing. We have been registered as a bonafide Agricultural Business, with the Department of Agricultural in Puerto Rico. We have our SAM.gov certification, so we are qualified federal contractor. What that means is we have been approved to apply for and have completed our application for a Rural Energy of America land grant from the USDA. That was submitted April 1st. We have a high probability of achieving a grant for our solar installation. We have been awarded $250,000 in grant money from PRIDCO as part of our overall incentive program to make all this work.
QUESTION: What does Fusion Farms need?
ANSWER: We are seeking IMPACT Investors who are interested in clean, green, renewable energy and agriculture investments. We want investors who are "philanthropically" oriented to "Do Well By Doing Good" and they should be sensitive to environmentally sustainable food and water solutions.
QUESTION: How can prospective Investors get involved?
ANSWER: Your OPPORTUNITY is; an investment of just $100 to a maximum of $100,000 to own a piece of Fusion Farms that is changing the food security of Puerto Rico. The CPA-reviewed financial projections (part of the Online Offering Memorandum) show a tremendous potential ROI on a very conservative basis. Fusion Farms is also a Qualified Opportunity Zone Fund Investment, as well as a Qualified Small Business Stock, both of which are substantial benefits to investors who want to shelter or reduce their capital gains tax.
A GREAT OPPORTUNITY FOR PUERTO RICO INVESTMENT: Will you help us build a community of environmentally sensitive investors for Fusion Farms Puerto Rico? We have developed proprietary Aquaponic systems which will change Puerto Rico’s dependency on imported foodstuffs forever.
In order to invest, you need to go directly to https://www.startengine.com/fusionfarms and register there. You can then download our Offering Memorandum which is our Form C which has been filed with the SEC. You can complete your purchase online using a credit card, ACH, wire transfer and they also accept Bitcoin and Ethereum as forms of payment.
We look forward to welcoming you as our newest Fusion Farms IMPACT Investor, so please make sure you make your purchase before we CLOSE our Offering on July 3, 2019!
Thanks again for considering our Opportunity and for your support!
Fusion Farms Major Milestone
8 months agoWe are excited to share the following update video, so enjoy!
You can also see some update photos of the building at:
Our success is now your success too! So, please keep telling your friends and family about Fusion Farms!
For those of you who have not yet invested, please act today. There are only 4 days left before our Campaign closes.
We are seeking IMPACT Investors who are interested in clean, green, renewable energy and agriculture investments. We want investors who are "philanthropically" oriented to "Do Well By Doing Good" and they should be sensitive to environmentally sustainable food and water solutions.
A GREAT OPPORTUNITY FOR PUERTO RICO INVESTMENT: Will you help us build a community of environmentally sensitive investors for Fusion Farms Puerto Rico? We have developed proprietary Aquaponic systems which will change Puerto Rico’s dependency on imported foodstuffs forever.
In order to invest, you need to go directly to https://www.startengine.com/fusionfarms and register there. You can then download our Offering Memorandum which is our Form C which has been filed with the SEC. You can complete your purchase online using a credit card, ACH, wire transfer and they also accept Bitcoin and Ethereum as forms of payment.
We look forward to welcoming you as our newest Fusion Farms IMPACT Investor, so please make sure you make your purchase before we CLOSE our Offering on July 3, 2019!
Thanks again for considering our Opportunity and for your support!
THE WHY SHOULD MAKE YOU CRY!
8 months agoLisa and I have been coming to Puerto Rico since 2016 and if you want to know what motivates us and the passion we have (we always give credit to Les Brown for the saying, "the why should make you cry"), you can read a detailed background story at https://www.linkedin.com/pulse/seeking-resilience-independence-self-reliance-through-kendell-lang/ including our potential investment prior to Hurricane Maria.
We formed our Puerto Rico company in 2016, and we all know that Hurricane Maria put Puerto Rico squarely on the map on September 19, 2017, in terms of natural disaster and humanitarian relief. 80% of farms were destroyed by Hurricane Maria, just one of two devastating hurricanes where recovery still continues. The devastation to the island, the people and the farms crystalized the need for us to implement hurricane-protected vertical farming and this is why Lisa and I relocated to Puerto Rico.
We initially worked with a great guy by the name of Hector Sola Oliver at PRIDCO and we toured buildings all over the west side of the Island. We thought we were going to lease a building in Aguada, but when we solidified our partnership with the University of Puerto Rico Mayagüez (https://www.fusionfarmspr.com/board-of-directors-and-advisors/) we opted to pursue the vacant building in the Guanijibo Industrial Park. We were assigned to work with Anthony Cordona (standing center in the below picture) who has been nicknamed the “dream-maker” a moniker which has been fitting in our situation as he’s been an incredible champion of the Fusion Farms Opportunity and he’s been personally responsible for helping us navigate what otherwise would be a very confusing and frustrating process. Anthony is the guy to whom we submitted our application, had our business plan reviewed and when our application was approved, we signed our Reservation Form and submitted our Deposits for the Lease of the building. That all started back in August of 2018, so we completed our plans, reprioritized our lives and physically relocated to Rincón November 1, 2018.
Suffice to say, we have been through many steps in the process working towards our ultimate goal of opening Fusion Farms and 'Growing Good Food For Good People'. Anthony has been amazing in terms of shepherding us through what I already mentioned could have been an overwhelming process, so we are working with InvestPR to use our experience as a Case Study for everyone involved in the process to learn more about all those details in an effort to help encourage ways to streamline and make that process more efficient. All this culminated in our accomplishing the following:
- Corporation formed in Good Standing
- Aug, 2018 - 3D Design Sketchup
- Sept, 2018 - Lease application submitted to PRIDCO approved for a hurricane-protected concrete building in Mayagüez, Puerto Rico
- October, 2018 - Secured partnership with University of Puerto Rico Agricultural Department
- November 1, 2018 – We became Rincónian’s!
- Nov, 2018 – Completed Executive Summary and Business Plan Including:
- Crop List, Yield Projections, Pricing Model, Distribution Model, Staffing Plan, Construction Project Plan, Materials List and Sourcing Plan Project Timeline.
- Dec, 2018 - Completed SAM.gov qualification to apply for USDA programs
- Dec, 2018 - Feasibility Study Completed
- Jan, 2019 - Financial projections reviewed and signed by Lcda. Cynthia J. Rijo Sánchez, CPA/Attny
- Jan, 2019 - Obtained a Dunn & Bradstreet DUNS number
- Jan, 2019 – Approved and registered with the SEC as a REG CF
- Jan, 2019 - Launched the Fusion Farms Online Public Offering at Startengine.com/FusionFarms
- Feb, 2019 - Started International Marketing Campaign
- Mar, 2019 - Submitted our USDA REAP Grant Application
- Mar, 2019 - Obtained Conditional $1.5M Loan Commitment from Oriental Bank in Mayagüez
- Apr, 2019 - Completed our PSA Certification for the new Food Safety laws
- May, 2019 - Completed our Audited Historical Financials for SEC uplisting
- Submitted for our Certificación Bonafida de Agricultura (which cannot be issued until we are operating)
- June, 2019 - We have coordinated draft contracts and are ready to sign our General Contractor, Solar Power System, Racking Vendor, Light Vendor, Concrete Vendor, Water Cistern Vendor, Rainwater Harvest System, Master Certified Plumber, Civil Engineer, Certified and Authorized Professional for permit processing and selected our Equipment Vendor(s) for all operational requirements.
- June, 2019 - Took possession of the building in Mayagüez, applying for PREPA and PRASA accounts
- July 1, 2019 - Meeting with InvestPR to explore co-promotional and co-educational video production with Fusion Farms as the Poster Case Study
- July 3, 2019 - Scheduled Closing Date for Online Public Offering
All of this was completed based on the representations that we would achieve possession of an operational and functioning building in which we could start operations. Key requirements for taking possession of the building was our ability to get PREPA (power) and PRASA (water) accounts, which continue to be a challenge but which we hope to have resolved next week. There were substantial repairs required, so you can see below some "Before-and-After" photos of the condition of the building at the start of our project and what it looks like today. Honestly, it was like pulling teeth to get the Lease Agreement completed in a form that we were willing to sign (appropriate warranties, representations, and indemnifications against prior Tenant environmental issues was a big one!), but we finally got the draft we needed and went through multiple rounds of required changes which were completed in order for us to sign.
The Governor, Secretary Manuel A. Laboy Rivera, Eng. and Hon. Tania Vázquez Rivera, Secretary of DNER all showed up on Tuesday, May 21 at the building reserved for Fusion Farms and there were almost 200 people in attendance (the official count was 185).
We have been marketing our Online Public Offering and have been successful at getting IMPACT Investors to invest in our Puerto Rico Opportunity from around the globe. This campaign has been incredible - it has not just raised capital from people who care about green, clean, hurricane-protected, aquaponic sustainable agriculture in Puerto Rico and want to do something about it, but also connected us with people all around the US and beyond (we have attracted investors not only from 26 US states and Puerto Rico, but from Switzerland, Chile, Australia, Singapore and India so far - all of whom are investing in our Puerto Rico Opportunity). You can see our Social Media Influence at:
- Please Like us on https://www.facebook.com/FusionFarmsPR
- Please connect with our company page on https://www.linkedin.com/company/fusion-farms-pr
- Please follow us on https://twitter.com/fusionfarmspr
- Please follow us on https://www.instagram.com/fusionfarmspr/
- Please Like our videos at https://vimeo.com/fusionfarms/
In terms of our efforts to promote the Governor coming to the Fusion Farms building in Mayagüez and issuing our PRIDCO Solar Grant Award at this Award Ceremony, I thought you would like to see the list of Google Indexed Pages where our Press Release was published five (5) days prior to the Event Date in over 19,000 sites. That number has now increased to 30,500 sites in the past two weeks. That is the power of Social Media and the viral nature of solid news.
We have also been listed in the following premium news sites:
You can see the Governor's presentation at https://www.facebook.com/kendell.lang/videos/10218095044943726/
The Governor and his team made the presentation to Fusion Farms and all the other recipients of awards and the general announcement about incentives for the hydroponics and aquaponics industry. We got our signed Award Letter which I've previously submitted in a prior Update for your review. Here is our picture with the Governor after the presentations.
We were recognized and awarded the letter signed by PRIDCO confirming our solar grant! We were presented our solar grant award letter at the Governor's podium and shook Governor Rosselló's hand, Secretary Laboy's hand, and the hand of Hon. Tania Vázquez Rivera, Secretary of DNER.
We are more motivated than ever about "Growing Good Food For Good People." The generosity and encouragement from everyone on the Island has been humbling and inspiring.
We appreciate all our IMPACT Investors support in this project and we are committed to achieving a positive solution that allows us to continue to be major champions of the opportunity ahead for Puerto Rico. This is such a fantastic opportunity for everyone involved, so we are now laser-focused to move this forward in a timely fashion so we can prove out the Pilot Project in Mayagüez. We have gotten a tremendous response from Executive Chef's across the Island, from bars, hotels, restaurant owners, and produce distributors, so they are just waiting to buy anything we can grow! The interesting part of this journey for us is that no one has said this is a bad idea. Everyone agrees it is a necessary piece of the economic engine needed to help rebuild an agricultural component to the revitalization of PR. Our success will have a multiplier effect and we look forward to being the poster-project to which people point when they talk about the new path PR is taking. We're doing everything we know how to make sure this gets done!
If you are following the campaign but not yet invested, what can we do to convince you to jump in as an IMPACT Investor? With only 6 days remaining until we close our Online Offering now is a better time than ever to invest. For those of you who have not yet invested, please act today.
Our success is your success too, so please tell your friends and family about Fusion Farms!
PRE-CLOSING SPECIAL OFFER
8 months agoFor all existing and prospective IMPACT investors in Fusion Farms:
SPECIAL OFFER PRE-CLOSING - WE CLOSE IN 7 DAYS ON JULY 3, 2019
Here's the deal: For those investors who commit to $50,000 in total investment (adding to your existing investment or investing for the first time), we will provide a 10% bonus and give you a one (1) year stock option to buy the same amount of shares at the same price (terms and conditions apply).
What this means, for example:
- For a total of $50,000.00, you will get 5,000 shares, plus a bonus of 500 shares at no additional cost (issued independently by the Company, not issued through the StartEngine portal).
- You will also be given a Limited Stock Purchase Option to acquire an additional 500 shares at the same price of $10 per share anytime within one (1) year of your original purchase date (Terms and Conditions Apply, please email ceo@fusionfarmspr.com for details).
We look forward to welcoming you as our newest Fusion Farms IMPACT Investor or for increasing your current IMPACT investment, so please make sure you make your purchase before we CLOSE our Offering on July 3, 2019!
For those of you who have not yet invested, please act today. Thanks again for considering our Opportunity and for your support!
P.S.
Here is a sample of some of our recent press:
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1. https://www.selfgrowth.com/articles/invest-in-fusion-farms
2. http://www.becomegorgeous.com/blogs/islam/invest-in-fusion-farms-P82909
3. https://www.mylifeline.org/allenoneil/updates/post/1560373
4. https://www.givology.org/~monsterworker/blog/692694/
5. https://www.minds.com/Aman4u/blog/imports-are-killing-puerto-rico-and-delivering-bad-food-to-i-989177725306896384
6. http://www.onfeetnation.com/profiles/blogs/global-aquaponics-market-to-grow-at-a-cagr-of-11-by-2023
7. https://contentgear.postach.io/post/puerto-rico-is-open-for-green-business
8. https://allenoneil.kinja.com/puerto-rico-has-its-share-of-challenges-1835761876
9. http://groupspaces.com/BusinessMarketing/item/1218924
10. http://msnho.com/blog/allenoneil/puerto-rico-%E2%80%93-produce-safety-alliance
11. http://tunehub.edublogs.org/2019/06/23/aquaponics-is-the-answer%ef%bb%bf/
12. https://www.merchantcircle.com/blogs/tech-tune-anchorage-ak/2019/6/Invest-in-Fusion-Farms/1703948
13. http://aman4u.inube.com/blog/8361856//
14. https://dailygram.com/index.php/blog/547346/short-term-goals-for-fusion-farms/
15. http://www.imfaceplate.com/allenoneil/medium-and-longterm-goals-for-fusion-farms
16. http://www.apsense.com/article/invest-in-fusion-farms.html
17. http://www.onechristianlove.com/member/blog_post_view.php?postId=35589
18. https://steemit.com/hurricane/@mikeljohn/about-fusion-farms-invest
19. https://www.goodreads.com/story/show/1125109-welcome-to-the-age-of-aquaponics
20. http://www.cross.tv/blog/162450
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Be sure to stay tuned for more exciting announcements! This will be FUN and MEANINGFUL!
We are excited about the upcoming Presentation, so mark your calendars for Friday, February 1, 2019, at 4:00 pm AST/3:00 pm EST. We'll be coming to you live from Puerto Rico!
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