CubicFarms Systems Corp. Announces $2.8 Million Sale of Commercial Scale Systems to Customer in Abbotsford, B.C.
- Customer intends to evaluate the performance of the Company’s technology in B.C. with the potential for international use in other countries where the customer operates
VANCOUVER, B.C., NOVEMBER 23, 2020 – CubicFarm® Systems Corp. (TSXV:CUB) (“CubicFarms” or the “Company”), a technology company developing and deploying technology to feed a changing world, announced today that its automated, controlled-environment growing system has been selected by Aright Greentech Canada Ltd. (“Aright”), a British Columbia-based agriculture investor-operator, to grow commercial quantities of fresh produce (the “Abbotsford agreement”) for retail markets in the Abbotsford and Chilliwack regions in British Columbia, Canada.
Aright is an international company with interests in environmentally focused companies in India and other countries, and this B.C. launch is a soft pilot for a potential future international roll-out.
The Company’s commercial agreement with Aright for the sale of 16 CubicFarms machines includes 14 growing machines, two propagation machines and an irrigation system, representing a total of approximately Cdn$2.8 million (including installation and shipping) in sales revenues to the Company. The system is expected to be installed in Abbotsford by August 2021.
The Company has received a deposit from Aright with respect to the commercial agreement.
The Company’s patented CubicFarms technology will enable Aright to grow high-quality foods, with predictable crop yields indoors, all year round.
Aright also plans to expand its systems after successful completion of Phase 1 in Abbotsford.
CubicFarms CEO Dave Dinesen commented: “We believe the Abbotsford agreement with Aright helps to further validate the commercial upside of our technology. We are equally excited that Aright, through its parent company, has agreed to develop the Abbotsford site to serve the local market, and commence learning for potentially significant expansion into India. We are looking forward to a seamless collaboration between our teams to successfully grow high-quality, great tasting, local produce here at home, and potentially in India.”
Tanya Mehta, Founder & CEO of Aright, commented: “We are a family of impact operators and investors who aim to have a net positive impact on people, the community and the environment. As next-generation growers, we are driven to be a key player in innovation of AgTech that can feed the rising population through technologically advanced farms that can adapt and operate with consistent results. Planting and harvesting existing croplands on technologically advanced farms that consistently deliver food production without requiring new land is at the heart of this plan to work with CubicFarms. After thoroughly evaluating all available indoor growing options, we determined that it is in the best interests of Aright and our stakeholders to work with CubicFarms, which we predict will be beneficial to launch our BC operations, and to foster further innovations both in B.C. and internationally.”
Potential Commercial Opportunities in India
CubicFarms and Aright India will launch a pilot project at Aright’s Abbotsford location to assess CubicFarms machine production capabilities for a number of crop types.
After the evaluation is complete, it could culminate in a significant roll-out of the technology in the upcoming years. The potential India commercial opportunity will enable development and commercialization of the CubicFarms’ technology, and align to Aright’s focus on achieving wide-scale environmental efficiencies for urban areas.
The pilot and the potential commercial agreement with Aright India are not related to the signed commercial Abbotsford agreement, and performance of those units, between the Company and Aright.
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 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 CubicFarms™ system, which contains patented technology for growing leafy greens and other crops indoors, all year round. 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.
For more information, please visit www.cubicfarms.com
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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 CubicFarms’ expected revenue recognition, and the completion of the sale and installation of the system by the customer. 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 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.