New HydroGreen Vertical Pastures™ Address Lack of Natural Resources
VANCOUVER, B.C., April 6, 2021 – CubicFarm® Systems Corp. (TSXV:CUB) (“CubicFarms” or the “Company”), a local chain agricultural technology company, today announced an agreement with Burnett Land & Livestock Ltd., LLLP (“Burnett”) for 12 HydroGreen Grow System beta modules, daily feed production supply, and includes collaboration on a research program and feed analysis with HydroGreen, Inc. (“HydroGreen”), a wholly-owned subsidiary of CubicFarms.
As part of the agreement, HydroGreen and Burnett will collaborate on the collection of data and research to quantify the livestock feed nutrition benefits, dry matter yield percentage gain, performance of the herd, with special interest in fertility, milk production, and the overall wellbeing of the animals.
This pioneering collaboration between Burnett and HydroGreen was initiated by Total Dairy Solutions U.S.A., a global leader in dairy farm solutions, when they evaluated the need for sustainable, commercial scale solutions for livestock feed. The agreement includes 12 HydroGreen GLS808 modules to be installed on Burnett’s large U.S.-based beef cattle ranch and dairy farm in Carpenter, Wyoming. Burnett’s operations include over 17,000 cattle located on 35,000 acres across the Midwestern and Western United States. As a trusted source of innovation and ag-tech, Total Dairy Solutions U.S.A. is a global reseller of the HydroGreen Grow System with over 200 employees servicing more than 400 dairies.
This beta project, called HydroGreen Vertical Pastures™, will include the first installation of the commercial scale HydroGreen GLS808 modules on a large-scale farm. The 12 HydroGreen GLS808 modules, once installed, can produce 80% more fresh livestock feed than HydroGreen’s legacy systems, providing Burnett with up to 72,000lbs of feed daily. As part of the feed ration, that’s enough to feed 2,000 animals daily. Burnett will purchase all the daily feed production supply with the option to purchase the modules and expand to accommodate Burnett’s full operational needs.
“When evaluating Burnett’s scaling opportunities, we strongly recommended HydroGreen’s unique solution for its sustainable and scalable technology,” said Kevin Fiske, CEO, Total Dairy Solutions U.S.A. “HydroGreen’s fresh livestock feed technology has many benefits, including using less land and 92%1 less water than traditional pasture grazing.”
“Burnett’s ranch size required a significant increase in livestock feed production capacity and our new HydroGreen Vertical Pastures™ can handle their commercial scale production needs,” said Dan Schmidt, President, HydroGreen. “As a technology company founded by farmers, we’re thrilled to collaborate with Burnett, an innovative, forward-thinking dairy and beef cattle ranch. Our research will enable us to apply our significant plant science knowledge to improve animal health and nutrition for our farmer partners.”
Jay Burnett, co-founder and operator of Burnett, said, “Water availability is an increasing concern in our industry and this technology is part of the solution. Our innovative agreement with HydroGreen allows us to collaborate on the technologies that will positively impact our growing production and expansion plans.”
Closing of Burnett Private Placement
The Company also announced today that it closed its previously announced non-brokered private placement with Burnett for gross proceeds of USD$1,500,000 (the “Private Placement”). The purchase price of CAD$1.29 per common share is the last closing price of the Company’s common shares before the parties executed a subscription agreement for the Private Placement on March 30, 2021.
The Company intends to use the proceeds of the Private Placement for advancing the research and development for HydroGreen and for general working capital purposes.
The Private Placement remains subject to final acceptance of the TSX Venture Exchange.
For more information about the Private Placement, please see the Company’s press release dated April 5, 2021, which is available under the Company’s profile on SEDAR at www.sedar.com.
1 Based on Company estimates.
CubicFarms is a local chain, agricultural technology company developing and deploying technology to feed a changing world. Its proprietary ag-tech solutions enable growers to produce high quality, predictable produce and fresh livestock feed with HydroGreen Nutrition Technology, a division of CubicFarm Systems Corp. The CubicFarms™ system contains patented technology for growing leafy greens and other crops onsite, indoors, all year round. CubicFarms provides an efficient, localized food supply solution that benefits our people, planet, and economy.
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.
On behalf of the Board of Directors
Dave Dinesen, Chief Executive Officer
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. Certain statements in this release may constitute “forward-looking statements” or “forward-looking information” within the meaning of applicable securities laws including, but not limited to, statements with respect to the beta project, the Private Placement and anticipated use of proceeds, and other information concerning future events or the intentions, plans and future action of the Company that may be described herein. Forward-looking statements are not guarantees of future performance and actual results may vary materially from those statements. General business conditions are factors that could cause actual results to vary materially from forward-looking statements.