CubicFarm Systems Corp. announces year-end financial results
Vancouver, BC – (AccessWire – November 14, 2019) – CubicFarm® Systems Corp. (TSXV:CUB) (“CubicFarms” or the “Company”) today reported its financial and operating results for the year ended June 30, 2019.
Key financial highlights
- Revenue for the year ended June 30, 2019 was $5,356,031 of which revenue from systems sales was $5,201,198 and revenue from other sales was $154,833. The Company did not record any revenues from systems sales during the year period ended June 30, 2018.
- Gross margin for the year ended June 30, 2019 was $1,279,198 (24%) and nil for the year ended June 30, 2018.
- Selling expenses, which include commissions and freight, were $127,211 compared to $21,041 for the year ended June 30, 2018.
- Net loss and comprehensive loss for the year ended June 30, 2019 were $7,630,624 or $0.11 loss per share, compared to $1,394,896 or $0.02 loss per share in the same period of the previous year.
- During the year ended June 30, 2019, CubicFarms sold and installed four systems – (i) a 14-machine system at Swiss Leaf Ltd., Calgary, Alberta, (ii) a 14-machine system at Del Fresco Produce Ltd., Kingston, Ontario, (iii) a 7-machine system at Nu Skin Enterprises Inc., Vineyard, Utah, USA, and (iv) a 1-machine system to Zenabis Global Inc., Langley, British Columbia.
- In September 2018, the Company deployed its first operational 11-machine system at its Pitt Meadows site in British Columbia. It serves as a research and development facility and a sales demonstration system.
- In October 2018, the Company began delivering produce from its Pitt Meadows system to local grocery stores under the Company’s trademarked produce brand “Thriiv Local Garden”.
- In December 2018, the Company signed a system sale agreement and received a deposit from its customer for a 12-machine system in the Greater Vancouver area, British Columbia.
- In January 2019, the Company executed a binding term sheet with Nu Skin that outlines the business arrangement under which Nu Skin and the Company intend to market and sell CubicFarms’ systems in China.
- In January 2019, the Company and Zenabis agreed to terminate their Joint Venture Agreement and replace it with a License Agreement. This License Agreement provides Zenabis with exclusive access to the Company’s technology for cannabis so long as Zenabis satisfies annual machine purchase thresholds.
CubicFarms CEO Dave Dinesen commented: “We are very excited for our future at CubicFarms. The last year has been an investment-heavy year for us, setting us up for this year’s focus on sales and growth. We have heavily invested in strengthening our management team, expanding our crop varieties to be able to capture more verticals in the fresh produce, animal feed, hemp/cannabis and nutraceutical ingredients space, and expanding our international sales pipeline.
“Recent developments such as increasingly large machine orders and the signing of our first global reseller arrangement to augment our own sales and marketing efforts, position us well to meet our vision of driving sales by constantly innovating through increased automation and expansion of verticals served in the market.”
CubicFarms’ year-end financial statements and management’s discussion and analysis will be issued and filed on SEDAR at www.sedar.com on November 14, 2019 and will be available on the same day on CubicFarms’ website at https://cubicfarms.com/investors/.
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.
About CubicFarm® Systems Corp.
CubicFarm® Systems Corp. (“CubicFarms”) is an ag-tech company commercializing large scale, vertical farming solutions for global industrial markets. Founded in 2015, the Company’s mission is to provide industries around the world with efficient growing systems capable of producing predictable crop yields. CubicFarms offers turnkey, commercial scale, hydroponic, automated vertical farm growing systems that can grow predictably and sustainably for 12 months of the year virtually anywhere on earth. CubicFarms enables its customers in the fresh produce, animal feed, nutraceutical, and hemp/cannabis industries to grow locally and to provide their markets with safe, sustainable, secure and fresh ingredients that are consistent in colour, size, taste, nutrition and allows for a longer shelf life. Further support and value is provided to customers through the Company’s patent-pending germination technology and proprietary auto harvesting and processing methods.
Using its unique, undulating growing system, the Company addresses the main challenges within the indoor farming industry by significantly reducing the need for physical labour and energy, and maximizing yield per cubic foot. The Company has sold and installed systems in Canada and the US, and is currently negotiating with a global pipeline of prospective customers. It also operates one wholly owned facility in Pitt Meadows, British Columbia, and sells its produce in the province to retail and wholesale customers under the brand name Thriiv Local Garden™.
Cautionary statement on forward-looking information
Certain statements in this release constitute “forward-looking statements” or “forward-looking information” within the meaning of applicable securities laws, including, without limitation, statements with respect to the Company’s sales and growth prospects. Such statements involve known and unknown risks, uncertainties, and other factors which may cause the actual results, performance, or achievements of CubicFarm Systems Corp., or industry results, to be materially different from any future results, performance, or achievements expressed or implied by such forward-looking statements or information. Such statements can be identified by the use of words such as “may”, “would”, “could”, “will”, “intend”, “expect”, “believe”, “plan”, “anticipate”, “estimate”, “scheduled”, “forecast”, “predict”, and other similar terminology, or state that certain actions, events, or results “may”, “could”, “would”, “might”, or “will” be taken, occur, or be achieved.
These statements reflect the company’s current expectations regarding future events, performance, and results and speak only as of the date of this news release. Consequently, there can be no assurances that such statements will prove to be accurate and actual results and future events could differ materially from those anticipated in such statements. Except as required by securities disclosure laws and regulations applicable to the company, the company undertakes no obligation to update these forward-looking statements if the company’s expectations regarding future events, performance, or results change.