CubicFarms attracts $1.16 million investment from leading dairy entrepreneur Harry DeWit and company insiders
VANCOUVER, BC, JULY 15, 2020 – CubicFarm® Systems Corp. (TSXV:CUB) (“CubicFarms” or the “Company”) is pleased to announce a non-brokered private placement with Harry DeWit and company insiders, involving the issuance of 1,659,600 common shares of CubicFarms at a price of C$0.70 per share for gross proceeds of up to C$1,161,720 (the “Offering”). Insiders participating in the Offering include Jeff Booth, Chairman; Rodrigo Santana, Chief Operating Officer; and Tim Fernback, Chief Financial Officer.
Harry DeWit is CEO and President of Blue Sky Farms, a Texas and Ohio-based dairy and farming business producing 1.2 million pounds of quality milk per day. He has been lauded as a forward-thinking dairy entrepreneur, having been awarded the International Dairy Foods Association’s “Innovative Dairy Farmer of the Year”, which recognizes the valuable contributions of progressive dairy producers. His soil conservation efforts were recognized by the USDA’s National Resources Conservation Service.
Mr. DeWit commented: “Sustainability, efficiency and automation have always been at the core of my business endeavours. I have looked to technology to conserve water, reduce labour, and generally improve the efficiency of my dairy operations. When CubicFarms’ board member John de Jonge introduced me to CubicFarms’ HydroGreen system that automates the growing of livestock feed, I had to learn more about the company.
“CubicFarms’ HydroGreen technology enables a more sustainable farming operation in that one system displaces thirty acres of land used for livestock forage production, not to mention the cost savings in labour, water, energy and fertilizers. Providing fresh HydroGreen feed on a daily basis to a herd of cows should bring the herd to a higher production level with health benefits.”
CubicFarms CEO Dave Dinesen commented: “Top tier ag-tech investor Ospraie Ag Science has added tremendous value to CubicFarms from day one of becoming a strategic investor just two months ago. We have benefitted from Ospraie’s vast network, sector expertise and vision in our company-building efforts. We are now pleased to welcome Harry to the roster of company supporters. An investment from an industry stalwart such as Harry is a big vote of confidence in CubicFarms and our HydroGreen livestock feed division.”
The net proceeds from the Offering are expected to be used for research and development to expand machine capabilities and crop varieties, and working capital.
The Offering is scheduled to close on or about July 28, 2020 and is subject to certain conditions, including, but not limited to, the execution of definitive documentation and receipt of all necessary approvals, including the approval of the TSX Venture Exchange. All securities issued pursuant to the Offering will be subject to a hold period under applicable securities laws, which will expire four months plus one day from the closing date of the Offering.
This press release does not constitute an offer to sell or the solicitation of an offer to buy, nor shall there be any sale of these securities, in any jurisdiction in which such offer, solicitation or sale would be unlawful prior to registration or qualification under the securities laws of such jurisdiction. The securities have not been and will not be registered under the United States Securities Act of 1933, as amended (the “U.S. Securities Act”), or any state securities laws, and may not be offered or sold within the United States unless an exemption from such registration is available.
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 a technology company that is developing and deploying technology to feed a changing world. Its proprietary technologies enable growers around the world to produce high-quality, predictable crop yields. CubicFarms has two distinct technologies that address two distinct markets. The first technology is its patented CubicFarm™ System, which contains patented technology for growing leafy greens and other crops. Using its unique, undulating-path 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. CubicFarms leverages its patented technology by operating its own R&D facility in Pitt Meadows, British Columbia, selling the System to growers, licensing its technology and providing vertical farming expertise to its customers. The second technology is CubicFarms’ HydroGreen System for growing nutritious livestock feed. This system utilizes a unique process to sprout grains, such as barley and wheat, in a controlled environment with minimal use of land, labour and water. The HydroGreen System is fully automated and performs all growing functions including seeding, watering, lighting, harvesting, and re-seeding – all with the push of a button – to deliver nutritious livestock feed without the typical investment in fertilizer, chemicals, fuel, field equipment and transportation. The HydroGreen System not only provides superior nutritious feed to benefit the animal, but also enables significant environmental benefits to the farm.
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 use of proceeds of the Offering and the potential benefits of Harry DeWit’s investment to the Company. Such statements involve known and unknown risks, uncertainties, and other factors including evolving market conditions, 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 including the Company obtaining the approval of the Offering from the TSX Venture Exchange. 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.