USD$2.7M Sale of Commercial Scale Indoor Growing Systems
VANCOUVER, B.C., April 23, 2021 – CubicFarm® Systems Corp. (TSXV:CUB) (“CubicFarms” or the “Company”), a local chain agricultural technology company, today announced the sale of 18 modules of the CubicFarm System onsite indoor growing technology at a sale price of USD$2.7M. BoomA Food Group will operate the first commercial scale vertical farm in Australia, positioning the company as a market leader. BoomA Food Group will use these modules to grow commercial scale amounts of produce in New South Wales, specializing in herbs and microgreens.
Food production in Australia has been significantly impacted year over year by devastating wildfires and major flooding. Farming currently covers 385 million hectares, or 58 per cent of Australia, and accounts for 59 per cent of the water extracted¹. Crops and horticulture in Australia are generally concentrated near the coast, while areas of New South Wales have been cleared at more than double the rate of the previous decade—and agriculture was responsible for more than half the area cleared.
“We searched the world over for the right sustainable growing technology to serve our communities in New South Wales and beyond. Australia has experienced the challenges of climate change, the devastating effects of drought, and significant impacts on our food production. CubicFarms’ patented technology is superior to other vertical farming options because it provides commercial scale output while minimizing environmental impact and maximizing cost efficiencies,” said Cory Robertson, Managing Director, BoomA Food Group.
The CubicFarm System was purchased by BoomA Food Group with funding provided by Baillie Asset Management as trustee for the Pokolbin Vertical Farm Infrastructure Fund.
“I’m thrilled to announce our newest farmer partner in Australia, as the initial launch of our global markets expansion, bringing our technologies to another continent,” said Dave Dinesen, CEO, CubicFarms. “For a region that’s been devastated by natural disasters and food scarcity, our local chain ag-tech will empower local farmers to improve independent food production with predictable fresh produce 365 days a year. Our technology was founded by farmers as a solution to help farmers to succeed despite unpredictable outdoor growing conditions.”
Cory Robertson, Managing Director, BoomA Food Group, is an Australian Aboriginal social entrepreneur and business owner, as well as the Services Director of Goanna Services PTY Ltd. (“Goanna”), a company providing direct community access to contracts employing Indigenous peoples for environmental, government, and construction services.
Kevin Chandler, Chairman, BoomA Food Group, has extensive experience using business principles and practices to address community needs and improve opportunities for Indigenous youth. He is a psychologist and management consultant who founded and grew the Chandler Macleod Group into an AUD$1.5B company. Previously, Chandler was the director of Australian venture capital firm Nanyang Ventures.
Ben Macauley, CEO, Baillie Asset Management, has over 25 years of experience in accounting, finance, and C-level management across financial services, family office, not-for-profit, and banking/finance sectors. Baillie Asset Management has extensive experience in Australian agricultural innovations.
¹According to the Government of Australia: https://www.agriculture.gov.au/abares/products/insights/ snapshot-of-australian-agriculture-2021#agricultural-production-is-growing.
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
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. Certain statements in this release may constitute “forward-looking statements” or “forward-looking information” within the meaning of applicable securities laws including, but not limited to, statements with respect to CubicFarms’ expected revenue recognition and the completion of the sale and installation of the modules by the customer. Forward-looking statements are not guarantees of future performance and actual results may vary materially from those statements. General business conditions are factors that could cause actual results to vary materially from forward-looking statements.