VANCOUVER, BC, SEPTEMBER 9, 2020 – CubicFarm® Systems Corp. (TSXV:CUB) (“CubicFarms” or the “Company”) is pleased to announce that it has signed a global reseller agreement with Hydrogreen Global, LLC (“HGG”). HGG has the non-exclusive right to globally market and sell CubicFarms’ HydroGreen fully-automated hydroponic growing systems that produce live, green, nutritious feed for livestock.
Highlights of CubicFarms’ reseller agreement with HGG:
- HGG will help drive the promotion, marketing and sales of HydroGreen systems. It is licensed to use the “HydroGreen” name and trademark in these authorized reseller activities to maintain brand consistency in the marketplace.
- HGG will develop a global dealer network to increase customer uptake worldwide, by leveraging its access to an industry dealer network in over 40 countries.
- HGG will manage customer experience and all aspects of the sales cycle by providing purchasers of the systems with installation, training and troubleshooting services, and managing warranty claims.
- HGG is entitled to purchase HydroGreen machines, parts and consumables at wholesale costs, for resale.
- HGG will be responsible for the payment of dealer sales commissions.
HGG is owned by Total Dairy Solutions – a Colorado, US-based company developing and commercializing integrated technologies and supply chain management for the meat and dairy industries, so that the resultant food products better satisfy consumer requirements of nutrition, health, traceability, animal welfare, and environmental protection. Total Dairy Solutions provides complete and robust plans for large-scale dairy projects worldwide, that include customized solutions for equipment, cow comfort and feeding, and farm management.
Kevin Fiske has been appointed the Chief Executive Officer of HGG. Mr. Fiske currently serves as President of Fiske Electric, an established electrical contractor specializing in large commercial and agricultural projects for over 35 years. Fiske Electric has completed the design and build of multiple dairies ranging in size from 700 to 6,000 cows. He is also Partner at Total Dairy Solutions. In addition, Mr. Fiske runs his own 700-cow family dairy operation with his son Brian.
This global reseller agreement will replace CubicFarms’ relationship with Artex Feed Solutions, first announced in the Company’s press release dated December 11, 2019. Artex Feed is in the process of being dissolved, and its President John de Jonge – also a board member of CubicFarms – continues to oversee business strategy at CubicFarms’ livestock feed division HydroGreen Inc. (renamed from CubicFeed Systems as part of a strategic brand realignment).
John de Jonge, President of HydroGreen Inc., commented, “I’ve known Kevin for many years through our various business dealings in the dairy space. I’m proud to have worked with him to design and deliver large dairy projects. Kevin and the team he is assembling at HGG have a deep understanding of working with and selling to our target customers within the global livestock industry, and managing a global reseller network. Additionally, I’m excited to leverage the combined technical expertise at Fiske Electric and Total Dairy Solutions to ensure seamless project management and installations for HydroGreen customers. Our new reseller HGG will be instrumental in broadening our credibility in the market and accelerating sales.
“The HGG agreement in place of the Artex Feed relationship will allow the team at CubicFarms to focus our efforts on our strengths and expertise in the automated indoor agriculture space, which are optimizing manufacturing efficiencies, pursuing large direct sales and strategic partnerships, and expanding research activities to support our customers with a wider variety of feed crops that can be grown in our automated system. These are things we do best. We are passionate about the future for HydroGreen, as there could not be a better time to displace a third of global arable land that is used to grow feed for animals.”
The HydroGreen system sprouts grains, such as barley and wheat, in a controlled environment with minimal use of land, labour and water. The system performs all growing functions including seeding, watering, lighting, harvesting, and re-seeding – all with the push of a button – to deliver livestock feed in just six days without the typical investment in fertilizer, chemicals, fuel, field equipment and transportation.
Image: The fully automated HydroGreen six-section unit produces approximately 3,500 pounds (1,587 kilograms) of feed per day.
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 patented CubicFarms™ 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 anticipated benefits of the HGG agreement. 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.