VANCOUVER, BC , Nov. 25, 2020 /CNW/ - CubicFarm® Systems Corp. (TSXV: CUB) ("CubicFarms" or the "Company"), a technology company developing and deploying technology to feed a changing world, announced today that its automated, controlled-environment growing technology has been selected by Vertical Acres Farm LLC ("Vertical Acres"), an Indiana -based produce company, to grow commercial quantities of fresh produce for the region.
The Company's commercial agreement with Vertical Acres is for the sale of 21 CubicFarms machines, including 17 cultivators, three propagators, and one fertigator, for a complete CubicFarm installation.
The agreement, which includes a deposit received from Vertical Acres, represents approximately C$3.8 million in anticipated revenue to the Company. The technology is expected to be installed in Indiana in the first half of 2021.
The Company's patented CubicFarms technology will enable Vertical Acres to grow high-quality foods, with predictable crop yields indoors, all year round.
CubicFarms CEO Dave Dinesen , commented: "We are looking forward to our partnership with Vertical Acres to help them successfully grow high-quality, great tasting, local produce in Indiana , and for the neighbouring regions. Our patented technology should enable them to maximize their production per cubic foot, while greatly reducing the physical footprint of their traditional farming operations."
Vertical Acres owner Fred Schakel, said: "We evaluated a large number of indoor growing systems and chose CubicFarms as the optimal commercial-scale fresh produce system solution. We love the idea of the perfect growing environment, the fraction of water it takes to grow our greens, and the freedom from contaminants that the Cubic system affords. We are excited that we will be able to supply our local community with fresh, perfect greens every day of the year without the influence of bad weather always weighing on our production model. With CubicFarms' excellent technology, we are truly looking forward to this partnership."
Private Placement
The Company also announced that pursuant to a non-brokered private placement (the "Offering"), the owners of Vertical Acres have agreed to purchase 225,500 common shares of the Company at a purchase price of C$0.78 per common share for gross proceeds of C$175,500 .
The Company intends to use the proceeds of the Offering for general working capital purposes.
Closing of the Offering is subject to approval of the TSX Venture Exchange.
Mr. Schakel commented, "After performing significant due diligence on the Company's technology, we are excited to further demonstrate our conviction in CubicFarms through this investment in its business."
Neither the TSX Venture Exchange nor its Regulation Services Provider (as that term is defined in the policies of the TSX Venture Exchange) accepts responsibility for the adequacy or accuracy of this release.
About CubicFarm® Systems Corp.
CubicFarm Systems Corp. ("CubicFarms") is a technology company developing and deploying technology to feed a changing world. Its proprietary technologies enable growers around the world to produce high quality, predictable crop yields. CubicFarms has two distinct technologies that address two distinct markets. The first technology is its CubicFarms™ system, which contains patented technology for growing leafy greens and other crops indoors, all year round. Using its unique, undulating-path growing system, the Company addresses the main challenges within the indoor farming industry by significantly reducing the need for physical labour and energy, and maximizing yield per cubic foot. CubicFarms leverages its patented technology by operating its own R&D facility in Pitt Meadows, British Columbia , selling the system to growers, licensing its technology and providing vertical farming expertise to its customers.
The second technology is CubicFarms' HydroGreen system for growing nutritious livestock feed. This system utilizes a unique process to sprout grains, such as barley and wheat, in a controlled environment with minimal use of land, labour and water. The HydroGreen system is fully automated and performs all growing functions including seeding, watering, lighting, harvesting, and re-seeding – all with the push of a button – to deliver nutritious livestock feed without the typical investment in fertilizer, chemicals, fuel, field equipment and transportation. The HydroGreen system not only provides superior nutritious feed to benefit the animal, but also enables significant environmental benefits to the farm.
For more information, please visit www.cubicfarms.com
Cautionary Statement on Forward-looking Information
Certain statements in this release constitute "forward-looking statements" or "forward-looking information" within the meaning of applicable securities laws, including, without limitation, statements with respect to CubicFarms' expected revenue recognition, and the completion of the sale and installation of the system by the customer. Such statements involve known and unknown risks, uncertainties, and other factors which may cause the actual results, performance, or achievements of CubicFarm Systems Corp., or industry results, to be materially different from any future results, performance, or achievements expressed or implied by such forward-looking statements or information including the Company obtaining the approval of the Offering from the TSX Venture Exchange. Such statements can be identified by the use of words such as "may", "would", "could", "will", "intend", "expect", "believe", "plan", "anticipate", "estimate", "scheduled", "forecast", "predict", and other similar terminology, or state that certain actions, events, or results "may", "could", "would", "might", or "will" be taken, occur, or be achieved.
These statements reflect the Company's current expectations regarding future events, performance, and results and speak only as of the date of this news release. Consequently, there can be no assurances that such statements will prove to be accurate and actual results and future events could differ materially from those anticipated in such statements. Except as required by securities disclosure laws and regulations applicable to the Company, the Company undertakes no obligation to update these forward-looking statements if the Company's expectations regarding future events, performance, or results change.
SOURCE CubicFarm Systems Corp.
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