VANCOUVER, British Columbia, November 2, 2023 – CubicFarm® Systems Corp. (“CubicFarms” or the “Company”) (TSX:CUB), a leading local chain agricultural technology company, announced that its ruminant livestock feed subsidiary company, HydroGreen Inc. (“HydroGreen”), has identified Visalia, California as its second location for HydroGreen’s California Regional Feed Hubs reflecting HydroGreen’s commitment to providing sustainable and efficient feed solutions to the dairy and beef industries.
The new Visalia location is in addition to the previously announced facility in Riverdale, California located 40 miles east of Riverdale Feed Hub. The initial phase of this facility is a twin building, housing 20 HydroGreen GLS 808 machines with a daily capacity of 64 tons of feed and over 23,000 tons annually, with the feed priced competitively at $150 per ton. Phase I of the Visalia Feed Hub is 100% sold out with full allocation to five large Visalia-based dairies. Additionally, Phase II, which also will produce 64 tons per day, is now 50% sold out.
This strategic expansion reflects HydroGreen’s continued development of its new core strategy of developing a recurring revenue division by developing and building regional Feed hubs in California to provide sustainable and efficient feed solutions to the dairy industry. Furthermore, this initiative underscores HydroGreen’s commitment to demonstrating the feasibility of its innovative Feed as a Service (“FaaS”) business model while accelerating product adoption.
FaaS is an innovative agricultural approach where HydroGreen establishes regional feed hub facilities equipped with Automated Vertical Pastures™ and supplies sprouted-grain nutrition to local livestock feeding operations. By overseeing operations at these facilities, HydroGreen ensures optimal feed production, maintains stringent quality control, and enhances animal performance outcomes for producers.
“It’s a mutually beneficial solution—producers gain access to a consistent feed ingredient that optimizes herd digestion, and it establishes a recurring revenue stream for HydroGreen,” said John de Jonge, CEO and President of HydroGreen. “This collaboration enables us to showcase the capabilities of our Automated Vertical Pastures™ and their positive impact on animal performance. We believe this project serves as a compelling testament to the effectiveness and sustainability of our solution, while opening doors to future partnerships within the agricultural industry.”
Forward looking and other cautionary statements
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 estimated harvesting capabilities of the machines, nutritional benefits of feed produced by the machines and quality of the feed in general. Such statements involve known and unknown risks, uncertainties, and other factors which may cause the actual results, performance, or achievements to be materially different from any future results, performance, or achievements expressed or implied by such forward-looking statements. Such statements can be identified by the use of words such as “intend”, “expect”, “believe”, “plan”, “anticipate”, “estimate”, “scheduled”, “forecast”, “predict”, and other similar terminology, or state that certain actions, events, or results “may”, “can”, “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.