VANCOUVER, BC- CubicFarm® Systems Corp. (TSXV:CUB)(OTC PINK:CUBXF) (“CubicFarms” or the “Company”) is pleased to announce the strategic investment of Ospraie Ag Science as the Company executes its vision of providing technology to feed a changing world.
CubicFarms is a leading platform provider of automated controlled-environment growing systems that produce commercial-scale quantities of fresh produce and nutritious livestock feed. The systems work continuously all year, providing consistent and predictable produce and feed without the typical investment in labour, land, water and fertilizer. Its reduced growing footprint allows growers to set up a CubicFarms system in and around large population centres, and supply their local markets while shortening distribution chains and the amount of time that food spends in transit. In addition to providing localized production, CubicFarms systems have been shown to be far more efficient than traditional farming methods, which enhances growers’ profitability.
“Over the past month, we’ve seen a sharp increase in inquiries from interested parties worldwide for our technology, to enhance food production and improve food security and self-sufficiency. The Covid-19 pandemic exposed fragility in supply chains, such as labour shortages, disruptions in the packing and transportation sectors, and increasing uncertainty in the domestic and international markets. CubicFarms’ automated growing systems have emerged as a key solution to overcoming these challenges by allowing growers to localize food production and provide their markets with fresh produce and nutritious livestock feed reliably and consistently,” said CubicFarms CEO Dave Dinesen.
“Two months ago, we announced our largest system sale of 100 fresh produce machines, and our ever increasing sales pipeline underscores the demand for our technology.”
Private placement with strategic investor Ospraie Ag Science
The non-brokered private placement with Ospraie Ag Science (“Ospraie”) involves the issuance of 21,739,130 common shares of CubicFarms at a price of C$0.23 per share for gross proceeds of up to C$5.0 million (the “Offering”). Without giving effect to the issuance of common shares, if any, pursuant to the exercise of pre-emptive rights held by another strategic investor of the Company, Ospraie will hold an 18.7% interest in the Company upon completion of the Offering.
“We are thrilled to welcome Ospraie as a strategic partner as CubicFarms embarks on its exciting next chapter. The investment by Ospraie, one of the top technology investors in the agricultural space, is a testament to the CubicFarms vision, team and technology,” said Jeff Booth, CubicFarms Chairman.
“Ospraie’s deep industry and commercial expertise, in addition to its extensive network, are expected to add significant value to CubicFarms and unlock new potential synergies with other companies in the Ospraie portfolio,” Mr. Booth added.
Dwight Anderson, Chief Investment Officer at Ospraie Ag Science, commented, “CubicFarms’ fresh produce systems are on the leading edge of commercial-scale controlled-environment-agriculture technology and we are excited to support Dave and the entire CubicFarms team as they continue to execute their vision of providing innovative solutions for both the food and feed markets.
“The agricultural value chain is rapidly evolving and technology infrastructure to overcome the pains of traditional farming is sorely needed. CubicFarms is one part of the multivariable solution required to address this need for safe, reliable, environmentally-friendly and affordable food. We look forward to working with the Company and its existing partners to realize CubicFarms’ tremendous potential.”
The net proceeds from the Offering are expected to be used for research and development to expand machine capabilities and crop varieties, and working capital.
The Offering is scheduled to close on or about May 15, 2020 and is subject to certain conditions, including, but not limited to, the execution of definitive documentation and receipt of all necessary approvals, including the approval of the TSX Venture Exchange. All securities issued pursuant to the Offering will be subject to a hold period under applicable securities laws, which will expire four months plus one day from the closing date of the Offering.
Photo: A grower using CubicFarms’ proprietary app to control frequency and volume of irrigation and nutrients, and monitor the machine’s speed to optimize yield and quality of each crop.
This press release does not constitute an offer to sell or the solicitation of an offer to buy, nor shall there be any sale of these securities, in any jurisdiction in which such offer, solicitation or sale would be unlawful prior to registration or qualification under the securities laws of such jurisdiction. The securities have not been and will not be registered under the United States Securities Act of 1933, as amended (the “U.S. Securities Act”), or any state securities laws, and may not be offered or sold within the United States unless an exemption from such registration is available.
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 that is 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 patented CubicFarm™ System, which contains patented technology for growing leafy greens and other crops. 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.
About Ospraie Ag Science
Ospraie Ag Science LLC (“Ospraie”) an investment vehicle that supports productivity-enhancing companies in the agriculture technology space with a focus on sustainable solutions that improve the quality of life for farmers and society. Utilizing its extensive network and 25 years of experience investing in agriculture markets, Ospraie identifies solutions that help farmers “Do More With Less” and that increase profitability, reduce environmental impact and improve their quality-adjusted yield.
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 the closing of the Offering and the use of proceeds thereof. 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.