Initial Sales Commitments Valued Over CAD$10 Million
VANCOUVER, B.C., October 5, 2021 – CubicFarm® Systems Corp. (“CubicFarms” or the “Company”) (TSX:CUB), a local chain agricultural technology company, today announced two initial dealers of its HydroGreen Certified Dealer Network to meet increasing distribution demand for the Company’s automated HydroGreen technology for on farm growing of fresh green livestock superfeed.
“We’re thrilled to welcome seasoned on farm consultants Total Dairy Solutions and Settje, our first two dealers, to help get this technology into the hands of the farmers who need it now,” said Dan Schmidt, President, HydroGreen. “With an established ag-tech customer base, they bring decades of direct experience working with farmers in the dairy and beef industries. Just like buying a tractor from a certified local dealer, our HydroGreen Certified dealers will support local sales, installations, and customer experience.”
Total Dairy Solutions US, LLC (“TDS”), a global leader in dairy farm solutions, signed a non-binding letter of intent (“LOI”) to become an official member of the HydroGreen Certified Dealer Network selling the HydroGreen Grow System indoor growing technologies to their customers. Settje Agri Services & Engineering Inc. (“Settje”), the U.S. Midwest’s premier provider for livestock engineering and design systems with a focus on the beef cattle industry, signed a LOI with HydroGreen to provide consulting and engineering services in building out this new Certified Dealer Network.
In aggregate, the HydroGreen Certified Dealer Network members TDS and Settje have committed to an initial 54 HydroGreen Grow System modules under contract by the end of 2022, to be installed once the Farmer Partners have confirmed site readiness. The first tranche of committals for 2022 will provide a minimum value of CAD$10 million for the Company. With the new Certified Dealer Network, HydroGreen has a total production pipeline of over 100 modules, with revenue recognized once installations are complete.
“We’re thrilled about this new partnership with HydroGreen,” said Kevin Fiske, Chief Executive Officer, TDS. “With over 200 employees servicing more than 400 dairies, our job is to source best-in-class ag-tech like HydroGreen to deliver to farmers in our network. TDS is a trusted source of innovation and on farm ag-tech solutions that focuses on sustainability for the future. Drought is causing feed prices to increase for farmers and dairies that cannot get access to high quality feed. Cows are smaller, weighing an average of 15 pounds less at market than last year. We believe HydroGreen provides the high-quality feed needed for a high-performance herd.”
“We immediately understood the growing demand for HydroGreen when we toured the HydroGreen’s Innovation Center,” said Steve Westerbuhr, Head of Engineering, Settje. “More than one third of cattle in the U.S. have grazed under drought conditions in 2021. HydroGreen enables farmers to grow their feed using 90 percent less water, providing up to 365 harvests per year, both key factors in becoming more independent and continuing to grow sustainably.”
“This is an important go to market strategy as we enter a growth and expansion phase of the business,” said Dave Dinesen, Chief Executive Officer, CubicFarms. “Our intention is to continue adding best-in-class HydroGreen Certified dealers like Settje and TDS to better serve our Farmer Partners across North America.”
CubicFarms is a 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.
For more information, please visit www.cubicfarms.com.
On behalf of the Board of Directors
Dave Dinesen, Chief Executive Officer
This release may contain certain “forward-looking statements” or “forward-looking information” under applicable securities laws. Forward-looking terms such as “may,” “will,” “could,” “should,” “would,” “plan,” “potential,” “intend,” “anticipate,” “project,” “target,” “believe,” “plan,” “outlook,” “estimate,” or “expect” and other words, terms and phrases of similar nature are often intended to identify forward-looking statements, although not all forward-looking statements contain these identifying words. Forward-looking statements are based on certain key expectations and assumptions made by the Company. Although management of the Company believes that the expectations and assumptions on which such forward-looking statements are based are reasonable, undue reliance should not be placed on the forward-looking statements because the Company can give no assurance that they will prove to be correct.
These forward-looking statements are based on certain assumptions that the Company has made in respect thereof as at the date of this press release regarding, among other things, the negotiation of a definitive agreement in respect of the transactions contemplated by the LOIs on satisfactory terms.