VANCOUVER, B.C., August 30, 2021 – CubicFarm® Systems Corp. (“CubicFarms” or the “Company”) (TSXV:CUB), a local chain agricultural technology company, today reported its second quarter financial and operating results for the three and six months ended June 30, 2021.
“Throughout this quarter, we continued to focus on creating and delivering world-leading technology that enables farmers to be successful and grow,” said Tim Fernback, Chief Financial Officer, CubicFarms. “We’re equipping our current farmer partners with the newest version of equipment available and ensuring our upcoming installations deliver the highest possible productivity and efficiency for our customers. Edoardo De Martin, our Chief Technology Officer, is leading our highly-skilled technology and product teams as we build the next generation of our CubicFarm System and HydroGreen Grow System technologies. The work performed by Edoardo’s team in the quarter has allowed us to meet the recent customer demand for larger CubicFarms and HydroGreen installations. Site readiness for our HydroGreen Vertical Pastures™ is progressing well at Burnett Land & Livestock Ltd. in Carpenter, Wyoming, with 12 commercial scale modules announced on April 6, 2021. Once installed, this HydroGreen Vertical Pastures™ will be the largest automated indoor fresh livestock feed facility in the world.”
“Localizing food and feed production on a commercial scale requires more than just product market fit,” said Jeff Booth, Chair of CubicFarms’ Board of Directors. “It requires a system that can meet the needs of the world’s largest food and feed buyers. I am more excited than ever about the opportunity in front of CubicFarms, and its ability to execute to meet the demand.”
Second Quarter Financial Results
- Revenue for the six months ended June 30, 2021, was $4,262,815, from systems sales and revenue from other services and consumables, slightly higher than the amount recorded in the same period of the previous calendar year.
- The Company currently has a total of 176 modules under contract and deposit. The amount of system sales orders that are pending manufacturing and installation is approximately USD$23.3 million.
- The Company increased its workforce from 52 to 116 full-time employees and contractors as of June 30, 2021, compared to the same period ending June 30, 2020.
- Revenue for the three months ended June 30, 2021, was $356,005. Revenue in the three and six months ended June 30, 2021, includes HydroGreen equipment, customer seeds and other consumables, and CubicFarm Gardens consulting services sold in the period.
- Working capital increased from $15,244,610 as of December 31, 2020, to $30,133,283, as of June 30, 2021, an increase of 98%.
- Net loss for the three months ended June 30, 2021, was $6,472,041, a 177% increase from the same period ending June 30, 2020. For the six months ended June 30, 2021, the net loss was $10,149,129, a 74% increase from the same period of the previous calendar year.
- Research and development (R&D) expenses of $1,320,935 were incurred in the three months ended June 30, 2021, an increase of 115% from the same period of the previous calendar year.
- General administrative expenses increased 43% to $3,279,358 for the three months ended June 30, 2021, reflecting the continued expansion of the Company’s business and necessary staffing additions.
Second Quarter Operational Highlights
- On April 5, 2021, the Company announced a non-brokered private placement with Burnett Land & Livestock Ltd.
- On April 6, 2021, the Company announced an agreement with Burnett for 12 HydroGreen Grow System beta modules, daily feed production supply, and includes collaboration on a research program and feed analysis with HydroGreen. This beta project, called HydroGreen Vertical Pastures™, will include the first installation of the commercial scale HydroGreen GLS808 modules on a large-scale farm.
- On April 20, 2021, the Company was awarded a Nexus Innovation Award for HydroGreen’s Vertical Pastures™ Grow System, an automated, on farm fresh livestock feed technology.
- On April 23, 2021, the Company announced the sale of 18 modules of the CubicFarm System at a sale price of US$2.7 million to BoomA Food Group in Australia.
- On April 29, 2021, the Company amended its loan with BDC Capital Inc.
- On May 14, 2021, the Company announced the appointment of technology industry leader Janet Wood to the Company’s Board of Directors.
- On May 17, 2021, the Company announced that 12 HydroGreen Grow System modules have been purchased by wholesale distributor Dihl Gros International for his beef cattle customers. The sale of 12 HydroGreen Grow System modules represents equipment sales of approximately C$2 million by the Company.
- On June 3, 2021, the Company announced the closing of an Underwriting involving Raymond James Ltd. as lead bookrunner, on behalf of a syndicate of underwriters, pursuant to which the underwriters have agreed to purchase, on a “bought deal” basis, 18,472,742 common shares of the Company at a price of C$1.35 per common share for aggregate gross proceeds of the Company of approximately C$25.3 million. The financing was originally announced on May 26, 2021, and upwardly revised by announcement on May 27, 2021.
- The Company is contributing to the Sustainable Development Goals outlined by the United Nations and will expand its reporting in future quarters to include Environmental, Social, and Governance (ESG).
The Company’s second quarter financial statements and management’s discussion and analysis will be issued and filed on SEDAR at www.sedar.com on August 30, 2021, and will be available on the same day on CubicFarms’ website at https://cubicfarms.com/investors/.
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. This news release may contain forward-looking statements which include, but are not limited to, comments that involve future events and conditions, which are subject to various risks and uncertainties. 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.