CubicFarms Announces $1.9M HydroGreen Sale in South Dakota

• CubicFarms announces the sale of seven HydroGreen machines valued at CAD$1.9 million to DGI Feeds

VANCOUVER, BC, Nov. 21, 2022 /CNW/ - CubicFarm® Systems Corp. ("CubicFarms" or the "Company") (TSX: CUB), a leading local chain agricultural technology company, today announced that its animal feed division, Hydrogreen Inc. ("HydroGreen"), has sold a seven-system GLS 808 valued at CAD$1.9 million.

HydroGreen has signed a definitive purchase agreement for the sale of seven HydroGreen GLS 808 machines valued at CAD $1.9 million to DGI Feeds, an equine feed company and certified HydroGreen dealer based in Mitchell, South Dakota.

DGI Feeds manufactures high-performance feed products for the equine industry using a proprietary blend of ingredients, including the sprouted-grain crop that HydroGreen equipment produces.

"CubicFarms has invested significantly in HydroGreen over the course of three years, primarily toward research and development, allowing our research team to study the application of HydroGreen sprouted-grain feed," says HydroGreen President, John de Jonge. "Going into 2023, we're equipped with more animal science data, and at the same time we're seeing agricultural water use regulations take effect in lower basin states like California, so I believe we are at a critical tipping point of demand for HydroGreen feed."

The seven HydroGreen machines purchased by DGI Feeds will fill a 17,000 square foot production and manufacturing facility in Mitchell, South Dakota. With seven HydroGreen machines, DGI Feeds will be able to harvest approximately 10,500 pounds of dry matter per day to use in their expanding equine feed product line. Two HydroGreen machines will be installed immediately, with the remaining machines to be installed by June 2023.

"Sprouted-grain feed is a breakthrough for animal nutrition and health," says Craig Livingston of DGI Feeds. "It's rich in natural enzymes, highly digestible, and very nutritious for horses, and I know that HydroGreen's technology is in a league of its own."

"The innovative producers in our pipeline have been watching our progress with animal research for years and based on the findings they're now confident in the many ways HydroGreen's sprouted-grain feed can improve rumen function and their businesses," says Dennis Dynneson, HydroGreen's Head of Sales.

For more information, please visit www.cubicfarms.com.

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: the expected completion date of the installations and estimated harvesting capabilities of the machines. Such statements involve known and unknown risks, uncertainties, and other factors which may cause the actual results, performance, or achievements to be materially different from any future results, performance, or achievements expressed or implied by such forward-looking statements. Such statements can be identified by the use of words such as "intend", "expect", "believe", "plan", "anticipate", "estimate", "scheduled", "forecast", "predict", and other similar terminology, or state that certain actions, events, or results "may", "can", "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.

HydroGreen's Automated Vertical Pastures™ technology utilizes a unique process to sprout grains, such as barley and wheat, in a controlled environment with minimal use of land, labour and water. HydroGreen's fully automated indoor growing technology performs all growing functions including seeding, watering, lighting, harvesting, and re-seeding—all with the push of a button—to deliver nutritious fresh forage for livestock without the typical investment in fertilizer, chemicals, fuel, field equipment, and transportation. Automated Vertical Pastures™ not only provide superior nutritious feed to benefit the animal but also enable significant environmental benefits to the farm.

CubicFarms is a leading local chain agricultural technology company developing and deploying technology to feed a changing world. Its proprietary ag-tech solutions enable growers to produce high quality, predictable produce and fresh livestock feed with HydroGreen Nutrition Technology, a division of CubicFarm Systems Corp. The CubicFarms™ system contains patented technology for growing leafy greens and other crops onsite, indoors, all year round. CubicFarms provides an efficient, localized food supply solution that benefits our people, planet, and economy.

SOURCE CubicFarm Systems Corp.

View original content to download multimedia: http://www.newswire.ca/en/releases/archive/November2022/21/c6682.html