VANCOUVER, British Columbia, March 31, 2022 – CubicFarm® Systems Corp. (“CubicFarms” or the “Company”) (TSX:CUB), a leading local chain agricultural technology company, today reported its fourth quarter and fiscal year end financial and operating results for the three months ended December 31, 2021.
“CubicFarms has a strong cash position at the end of this fiscal year as a result of a capital raise of $21.4 million. In addition, we have a strong pipeline of sales commitments and pending installations,” said Tim Fernback, Chief Financial Officer, CubicFarms. “In Q4, the Company announced the HydroGreen Certified Dealer Network to meet growing demand across North America, with dealer commitments for 2022 valued at $23 million for over 100 Automated Vertical Pastures™ (“AVPs”). Despite installation delays due to the impact of the global pandemic and related supply chain delays realized in 2021 and an equipment upgrade in early 2022, CubicFarm System installations in Abbotsford, New South Wales, and Indiana are expected to be substantially completed by the end of the second quarter of calendar 2022.”
“Over the past year, our product and technology team has grown to 60 people, spanning technology disciplines in software development, hardware development, engineering, plant science, and data science,” said Edoardo De Martin, President and Chief Technology Officer, CubicFarms. “With the addition of the Alberta Grow Centre, our larger R&D and Farmer Partner training facility, the Company is making excellent progress with our next generation of growing systems, software platform, and data strategy. We’re developing a full stack Controlled Environment Agriculture (“CEA”) enterprise-ready platform that will service both our indoor growing environments. This platform will provide Software as a Service (“SaaS”) opportunities for the Company and set the stage for further automation.”
CubicFarms is leading the new local chain ag-tech industry category with technologies that shorten the supply chain, minimize the use of natural resources, and maximize cubic space. With four simultaneous events virtually and in person, CubicFarms AMPLIFIED in October 2021 was Canada’s first category launch event in the agricultural technology sector. Astronaut Commander Chris Hadfield, sustainability expert Henry Gordon-Smith, and industry leaders showcased the Company’s largest projects in the past year, including the unveiling of the CubicFarms FreshHub and HydroGreen AVPs at CubicFarms AMPLIFIED.
FreshHub is a new 96-module high-density configuration for supplying local communities in the Lower Mainland area of Vancouver, British Columbia, with fresh produce in any climate, 365 days per year. During this fiscal year, CubicFarms received its first signed FreshHub contract with a refundable deposit of $1.7 million for approximately $20 million in total contract value. Once a final engineering package is completed and site readiness is confirmed, this FreshHub is expected to be installed in 2023.
In Carpenter, Wyoming, construction is progressing well on HydroGreen’s 12-machine project which is expected to begin feed production in late Q2. This AVP will be the largest fully automated indoor livestock feed system in the world.
Fourth Quarter and Fiscal Year End Financial Results
- The Company currently has a total of 203 modules pending installation. System sales pending manufacturing and installation are valued at approximately USD $27.4 million.
- In addition, the Company announced receiving its first deposit and signed FreshHub customer contract, valued at approximately $20 million.
- HydroGreen Certified Dealer commitments representing more than 100 machines for 2022.
- Revenue for the three months ended December 31, 2021, was $819,195. Revenue was $5,273,166 for the 12 months ended December 31, 2021.
- The Company increased its workforce to 159 full-time employees and contractors as of December 31, 2021.
- Net loss for the three months ended December 31, 2021, was $11,243,309 a 77% increase from the same period ending December 31, 2020. For the 12 months ended December 31, 2021, the net loss was $29,357,383.
- Research and development expenses of $3,232,038 were incurred in the three months ended December 31, 2021, a 91% increase from the same period of the previous fiscal year.
- General administrative expenses increased 89% to $5,145,416 for the three months ended December 31, 2021, reflecting the continued expansion of the Company’s business and necessary staffing additions.
Fourth Quarter Operational Highlights
- On October 5, 2021, the Company announced the establishment of an Alberta Grow Centre by acquiring growing modules and assets worth CAD$1.5 million from Swiss Leaf Farms Ltd.
- On October 5, 2021, the Company announced its HydroGreen Certified Dealer Network to meet increasing distribution demand for the Company’s HydroGreen technology.
- On October 18, 2021, the Company announced the appointment of Sandy Gerber as Chief Marketing Officer to lead the Company’s global marketing programs and continue delivering strategic marketing initiatives.
- On October 21, 2021, the Company hosted CubicFarms AMPLIFIED, which was attended virtually and in-person by more than 1,600 journalists, influencers, tech insiders, and industry and government guests. This event marked the official launch of the local chain ag-tech industry category developed by the Company.
- On October 25, 2021, the Company announced two additional dealers to its HydroGreen Certified Dealer Network.
- On November 15, 2021, the Company announced that three HydroGreen Grow System DGS 66 modules have been purchased by Rod Magnuson for his U.S.-based beef cattle herds in Castle Dale, Utah.
- On November 16, 2021, the Company announced a new dealer to its HydroGreen Certified Dealer Network.
- On November 24, 2021, the Company announced the closing of its previously announced bought deal public offering (the “Offering”) of common shares of the Company. Pursuant to the Offering, the Company issued a total of 16,000,000 common Shares at a price of CAD$1.25 per common Share for gross proceeds to the Company of CAD$20 million.
“For CubicFarms, 2021 proved to be a formative year, positioning us well for a breakout year in 2022,” said Dave Dinesen, Chief Executive Officer, CubicFarms. “By supplying our Farmer Partners with leading local chain ag-tech and with the exciting introduction of our high-density FreshHub™ and commercial scale Automated Vertical Pastures™, our team is focused on installations and associated revenue in 2022 as we continue adding to our strong sales pipeline.”
The Company’s fourth quarter financial statements and management’s discussion and analysis will be issued and filed on SEDAR at www.sedar.com on March 31, 2022, and will be available on the same day on CubicFarms’ website at https://cubicfarms-web.azurewebsites.net/investors/.
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.
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.