VANCOUVER, BC, July 21, 2023 /CNW/ - CubicFarm® Systems Corp. ("CubicFarms" or the "Company") (TSX: CUB), a leading local chain agricultural technology company, announced that its ruminant livestock feed subsidiary company, HydroGreen Inc. ("HydroGreen"), has signed a Memorandum of Terms ("MOT") with John Verway, owner of Johann Dairy, which is a large dairy farm based in Fresno, California. This collaboration marks a step toward the rapid closure of a definitive purchase agreement and is the second MOT signed with a large California dairy in two weeks.
To service this collaboration, HydroGreen aims to establish a facility in Riverdale, California located at the Wilson Dairy, equipped with an initial phase of 10 HydroGreen GLS 808 machines housed in one building. Ten GLS 808 machines have the capacity to provide up to 34 tons of feed per day which amounts to approximately 12,000 tons of feed annually per building. HydroGreen has now sold out the full capacity of the initial phase of the Riverdale Feed Facility.
Under the MOT with Johann Dairy, HydroGreen will deliver 10 tons of HydroGreen "As Fed" Feed ("Feed") per day to Johann Dairy. This project not only serves to validate HydroGreen's in-field product, but it also presents an opportunity to expand its sales to other dairy and beef operations in the region. Furthermore, the undertaking aims to demonstrate the viability of HydroGreen's innovative Feed as a Service ("FaaS") business model and facilitate accelerated product adoption.
FaaS is an innovative agricultural model where HydroGreen builds a regional feed hub facility equipped with Automated Vertical Pastures™ and sells the sprouted-grain nutrition to livestock feeding operations in the area. Having HydroGreen run operations at the feed hub facilities guarantees optimal feed production, quality control, and enhanced animal performance outcomes for producers.
"It's a mutually beneficial solution—producers have a consistent feed ingredient that optimizes digestion within their herd, and it creates a recurring revenue stream for HydroGreen," says John de Jonge, Interim CEO and President of HydroGreen. "This collaboration will enable us to showcase the outstanding capabilities of our Automated Vertical Pastures™ and the positive impact they can have on animal performance. We believe this project will serve as a compelling testament to the effectiveness and sustainability of our solution, while opening doors to future partnerships within the agricultural industry."
For more information, please visit www.cubicfarms.com.
Forward looking and other cautionary statements
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 estimated harvesting capabilities of the machines, nutritional benefits of feed produced by the machines and quality of the feed in general. 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.
About HydroGreen
HydroGreen produces Automated Vertical Pastures™, a type of smart farming equipment that uses a unique process to sprout grains such as wheat and barley, in a controlled growing environment to efficiently produce a high-performance feed ingredient for livestock 365 days a year. HydroGreen's equipment is simple and easy to operate and performs all growing functions automatically, including seeding, watering, lighting, harvesting, and re-seeding, which allows livestock businesses to feed consistent nutrition every day with minimal labour. When balanced correctly in the ration, HydroGreen sprouted grain modifies animal digestion which enhances productivity and reduces the amount of enteric methane emitted in ruminant livestock. The result also enables environmental benefits to the farm while helping to meet increasing demand for valuable farm-based inset and offset carbon credits.
About CubicFarms
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 subsidiary of CubicFarm Systems Corp. The CubicFarms™ system contains patented technology for growing leafy greens and other crops on-site, indoors, all year round. CubicFarms provides an efficient, localized food supply solution that benefits our people, planet, and economy.
SOURCE CubicFarm Systems Corp.
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