- Added USD$6.1 million to backlog with new contracts for 42 modules
- Appointed former Microsoft GM Edoardo De Martin as new Chief Technology Officer
- Subsequent to the quarter, announced C$22 million bought deal financing
VANCOUVER, B.C., May 31, 2021 – CubicFarm® Systems Corp. (TSXV:CUB) (“CubicFarms” or the “Company”), a local chain agricultural technology company, today reported its first quarter financial and operating results for the three months ended March 31, 2021.
“This is our strongest quarter to date, with more than $3.9 million in revenue in the first quarter of the year, along with signing new customer orders for 42 modules of our indoor growing technologies,” said Tim Fernback, CFO, CubicFarms. “Our total sales and deposits have increased to 199 modules as a result of accelerating demand for our CubicFarm and HydroGreen divisions. This backlog represents a value of over $26 million under contract that are pending manufacturing and installation.”
“We’re proud of the company’s results to date with our trailing 12 months revenue up 662% year over year,” said Dave Dinesen, Chief Executive Officer, CubicFarms. “On May 28, we announced a bought deal financing for $22 million. Our focus on our market-leading technology roadmap will continue the accelerated global growth of the Company.”
First Quarter Financial Results
- Revenue for the three months ended March 31, 2021 was $3,906,810, of which revenue from systems sales was $3,689,369 and revenue from other services and consumables was $217,441.
- Trailing 12 months (“T12M”) revenue was $8,594,606, up 662% over T12M revenue of $1,128,576 a year ago.
- Secured USD$6,120,400 in new contracts for a total of 42 modules of the CubicFarm System and HydroGreen Grow System technologies.
- Research and development (R&D) expenses of $1,140,419 were incurred, an increase of 180% compared to $407,097 during the same period.
- The Company nearly doubled its workforce from 49 to 94 full-time employees and contractors as of March 31, 2021, compared to the same period ending March 31, 2020.
- Selling expenses were $629,156, compared to $198,042 for the same period in the previous fiscal year, supporting the Company’s branding and expansion efforts.
- Net loss for the three months ended March 31, 2021 was $3,677,088, a 7% increase from the same period ending March 31, 2020.
- General administrative expenses increased 41% to $3,228,634 $ for the three months ended March 31, 2021 reflecting the continued expansion of the Company’s business and necessary staffing additions.
First Quarter Operational Highlights
- Appointed former Microsoft GM Edoardo De Martin as new Chief Technology Officer.
- Appointed a Scientific Advisory Board comprised of top experts in the fields of agriculture and technology, primarily responsible for making recommendations to the Company’s senior leadership team regarding research and development priorities.
- A scientific journal published a case study involving HydroGreen. The article, published by Canadian Science Publishing in FACETS, the official journal of the Royal Society of Canada’s Academy of Science, finds that HydroGreen’s technology has great potential for reducing greenhouse gas emissions in the animal agriculture industry.
- Changed its financial year-end from June 30 to December 31 and changed its auditor from MNP LLP to KPMG LLP.
Subsequent to the end of the First Quarter
- 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 6, 2021, the Company announced the appointment of Thomas Liston as Vice President (VP) of Corporate Development. Liston will provide CubicFarms with strategic business development and capital markets advisory services in his role.
- 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$2,700,000 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 that Janet Wood has been appointed to the Company’s Board of Directors. Her success in building global channel partnerships and alliances with leading technology companies will bring invaluable insight to CubicFarms’ Board of Directors. Wood replaced John de Jonge, a founding member of the Company’s Board of Directors. He will continue providing guidance in a different capacity by joining the Company’s newly formed HydroGreen Business Advisory Board.
- 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 May 26, 2021, the Company announced that it entered into an agreement with Raymond James Ltd. as sole bookrunner, on behalf of a syndicate of underwriters, pursuant to which the underwriters have agreed to purchase, on a “bought deal” basis, 14,814,815 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$20 million.
- On May 27, 2021, the Company announced an upsize to the previously announced bought deal public offering of common shares, increasing from C$20 million to C$22 million.
CubicFarms’ first quarter financial statements and management’s discussion and analysis will be issued and filed on SEDAR at www.sedar.com on May 31, 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.