VANCOUVER, BC, April 30, 2021 /CNW/ – CubicFarm® Techniques Corp. (TSXV: CUB) (“CubicFarms” or the “Firm”), a neighborhood chain agricultural know-how firm, right this moment introduced its monetary outcomes for the transition 12 months1 for the three and 6 months ended December 31, 2020.
“CubicFarms is well-positioned for scalable development in 2021 with the addition of a number of key members in our gross sales, know-how, engineering, and operations groups,” mentioned Dave Dinesen, CEO of CubicFarms. “CubicFarms is a research-driven know-how firm that lately shaped a Scientific Advisory Board with a number of the world’s finest minds engaged on our know-how to feed a altering world. With the SAB’s experience, our R&D spending has elevated by 197% and are constantly enhancing our CubicFarms and HydroGreen rising methods, leading to new prospects inside Canada, the U.S., and internationally. We’re attracting prime expertise like Edo De Martin, previously of Microsoft, as our Chief Know-how Officer. CubicFarms has a transparent ESG technique, solidifying our standing as a major participant within the Managed Setting Agriculture business and a pacesetter in native chain ag-tech.”
“The Firm made vital operational progress within the second half of calendar 2020 and afterwards,” mentioned Tim Fernback, Chief Monetary Officer at CubicFarms. “As we glance forward in 2021, now we have a stable monetary footing with an excellent stability sheet and 157 CubicFarms modules beneath contract, valued at an estimated USD$21 million to the Firm. One other vital development is the contract signing of the beta check of our business scale HydroGreen Vertical Pastures™ recent livestock feed rising know-how at a beef and dairy cattle farm in Wyoming with a herd dimension of 17,000. Analysis and information assortment from the HydroGreen Vertical Pastures™ will likely be ongoing on farm and can contribute to our plant and animal science understanding in addition to how the HydroGreen know-how reduces greenhouse fuel emissions².”
Six Month Fiscal 2020 Monetary Outcomes
- In the course of the six months ended December 31, 2020, the Firm recorded $624,774 in income, in comparison with $560,841 for the three months ended December 31, 2019, representing a rise of 11 per cent.
- The Firm’s web lack of $10,125,563 for the six-month interval ended December 31, 2020, elevated by roughly 138%, in comparison with a web lack of $4,267,196 throughout the identical interval within the earlier fiscal 12 months.
- In the course of the six months ended December 31, 2020, the Firm recorded common administrative bills of $5,630,856, in comparison with $3,216,366 for the six months ended December 31, 2019, representing a rise of 75% per cent.
- The Firm’s analysis and improvement bills of $2,355,931 for the six-month interval ended December 31, 2020, elevated by roughly 197%, in comparison with $792,012 throughout the identical interval within the earlier fiscal 12 months.
- The Firm’s promoting bills of $745,390 for the six-month interval ended December 31, 2020, elevated by 241%, in comparison with $218,731 throughout the identical interval within the earlier fiscal 12 months.
- As of December 31, 2020, the Firm had money and money equivalents of $16,206,535, in comparison with $3,604,412 as of June 30, 2020, representing a rise of 350%.
Six Month Fiscal 2020 Operational Highlights
On October 8, 2020, the Firm introduced the appointment of Dan Schmidt as Senior Vice President of International Gross sales. In Schmidt’s new position, he’s accountable for rising and main the Firm’s world gross sales technique because it enters its subsequent section of fast development.
On November 23, 2020, the Firm introduced the sale of a business scale CubicFarm System to Aright Greentech Canada Ltd. (“Aright”), a British Columbia-based agriculture investor-operator, to develop business portions of recent produce for retail markets within the Abbotsford and Chilliwack areas in B.C., Canada. Aright is a world firm with pursuits in environmentally targeted firms in India and different nations, and this B.C. launch is a comfortable pilot mission with the potential for a future worldwide roll-out. The Firm’s business settlement with Aright for the sale of 16 CubicFarm modules consists of 14 rising modules, two propagation modules, and an irrigation system, representing a complete worth of roughly C$2.8 million (together with set up and transport) in gross sales income to the Firm. The system is anticipated to be put in in Abbotsford by August of 2021.
On November 25, 2020, the Firm introduced sale of economic scale system to Vertical Acres Farm LLC (“Vertical Acres”), an Indiana-based produce firm, to develop business portions of recent produce for the area. The Firm’s business settlement with Vertical Acres is for the sale of 21 CubicFarm System modules, together with 17 cultivators, three propagators, and one fertigator. The settlement, which features a deposit obtained from Vertical Acres, represents roughly C$3.8 million in anticipated income to the Firm. The know-how is anticipated to be put in in Indiana within the first half of 2021.
On December 14, 2020, the Firm introduced the sale of economic scale methods in Metropolitan Vancouver to 1241876 B.C. Ltd., doing enterprise as FutureLife Produce (“FutureLife”). The sale of 10 CubicFarm System modules represents roughly C$1.7 million in gross sales income to the Firm. FutureLife is establishing CubicFarms’ largest vertical farming system set up to this point with a 100-module mission at present deliberate to function in Surrey, B.C., and desires to put in an extra 10 modules at a strategic location to service the native meals companies market. The Firm is within the preliminary levels of kit choice and general website choice with FutureLife, which can end in a modification of the general gear must accommodate gross sales of produce inside the metropolitan Vancouver market.
On December 15, 2020, the Firm introduced that it entered into an settlement with Raymond James Ltd. as lead underwriter and sole bookrunner, on behalf of a syndicate of underwriters (collectively, the “Underwriters”), pursuant to which the Underwriters agreed to buy, on a “purchased deal” foundation, 11,111,111 widespread shares (the “Frequent Shares”) within the capital of the Firm at a worth of C$0.90 per Frequent Share (the “Situation Worth”) for combination gross proceeds to the Firm of roughly C$10,000,000 (the “Providing”). The Firm agreed to grant the Underwriters an over-allotment choice to buy as much as an extra 15% of the Frequent Shares issued beneath the Providing on the Situation Worth, exercisable in complete or partly at any time for a interval ending 30 days from the closing of the Providing. As well as, CubicFarms entered right into a subscription settlement with current shareholder Harry DeWit, CEO and President of BlueSky Farms, LLC (“BlueSky Farms”), a Texas and Ohio-based dairy and farming enterprise, pursuant to which BlueSky Farms will buy widespread shares on a personal placement foundation on the Situation Worth for gross proceeds to CubicFarms of as much as C$5,000,000 (the “Concurrent Non-public Placement”). The web proceeds from the Providing and Concurrent Non-public Placement will likely be used to help CubicFarms’ continued world development, R&D efforts to optimize module yields, automation, and performance, to broaden addressable crop varieties, and for working capital and different common company functions.
On December 21, 2020, the Firm introduced the closing of its fairness financing consisting of the Providing and Concurrent Non-public Placement. Pursuant to the Providing, the Firm issued a complete of 12,777,777 Frequent Shares at a worth of C$0.90 per Frequent Share for gross proceeds to the Firm of C$11,499,999, which incorporates the train, in full, by the Underwriters of the over-allotment choice granted by the Firm to buy an extra 1,666,666 Frequent Shares at a worth of C$0.90 per Frequent Share. As well as, CubicFarms closed the beforehand introduced Concurrent Non-public Placement with current shareholder Harry DeWit, CEO and President of BlueSky Farms, pursuant to which Blue Sky Farms bought 5,222,300 Frequent Shares at a worth of C$0.90 per Frequent Share for gross proceeds to CubicFarms of C$4,700,070.
Highlights Subsequent to The Transition 12 months Ended December 31, 2020
On March 2, 2021, the Firm introduced the appointment of Edoardo De Martin as Chief Know-how Officer. Previous to becoming a member of CubicFarms, De Martin spent 10 years at Microsoft working in varied roles together with Common Supervisor of the Microsoft Vancouver Growth Centre, in addition to driving innovation as GM of Dynamics Blended Actuality Functions on HoloLens.
As a confirmed know-how chief with greater than 20 years of expertise within the know-how business, De Martin brings vital expertise to advancing synthetic intelligence (AI), robotics, and blended actuality applied sciences supporting the Firm’s progressive rising applied sciences. De Martin will likely be creating the Tech crew, which will likely be engaged on the initiatives in AI, automation, and machine studying initiatives, and creating the subsequent era of indoor rising applied sciences.
On March 18, 2021, the Firm introduced the appointment of a Scientific Advisory Board (“SAB”) to information and advise CubicFarms. The SAB is comprised of prime consultants within the fields of agriculture and know-how and is primarily accountable for making suggestions to the Firm’s senior management crew concerning R&D priorities.
Exterior SAB members embody:
Dr. Lenore Newman (SAB Chair), Director of the Meals and Agriculture Institute on the College of the Fraser Valley (UVF) the place she holds a Canada Analysis Chair in Meals Safety and Setting.
Dr. Tammara Soma, MCIP RPP, an Assistant Professor on the College of Useful resource and Environmental Administration (Planning program) at Simon Fraser College and Analysis Director of the Meals Techniques Lab.
Dr. Laila Benkrima, Director of LB Plant Biosciences Analysis and Consulting Inc. at Simon Fraser College.
Dr. Evan Fraser, PhD, a full professor on the College of Guelph, the Director of the Arrell Meals Institute, a Fellow of the Trudeau Basis, and a Fellow of the Royal Canadian Geographic Society.
On April 5, 2021, the Firm introduced that pursuant to a non-brokered non-public placement, Burnett Land & Livestock Ltd., (Burnett) has agreed to buy 1,464,622 widespread shares of the Firm at a purchase order worth of CA$1.29 per widespread share for gross proceeds of US$1,500,000 (roughly CA$1,886,427).
On April 6, 2021, the Firm introduced an settlement with Burnett, for 12 HydroGreen Vertical Pastures™ Develop System beta modules, day by day feed manufacturing provide, and consists of collaboration on a analysis program and feed evaluation with HydroGreen.
On April 6, 2021, the Firm introduced the appointment of Thomas Liston as Vice President (VP) of Company Growth. Liston will present CubicFarms with strategic enterprise improvement and capital markets advisory companies in his position as VP of Company Growth. Liston is a know-how investor, advisor, and a Chartered Monetary Analyst® with over 20 years of expertise in capital markets.
On April 20, 2021, the Firm was awarded a Nexus Innovation Award for HydroGreen’s Vertical Pastures™ Develop System, an automatic, on farm recent livestock feed know-how. HydroGreen’s distinctive automated know-how was chosen by dairy farmers as a result of with this know-how, dairies can achieve extra management over feed manufacturing and preserve water and land, with out the necessity for chemical compounds or fertilizers.
On April 23, 2021, the Firm introduced the sale of 18 modules of the CubicFarm System automated onsite indoor rising know-how at a sale worth of US$2,700,000 to BoomA Meals Group. BoomA Meals Group will use these modules to develop business scale quantities of produce in New South Wales, Australia, specializing in herbs and microgreens. With this set up, BoomA Meals Group will function the primary business sale vertical farming system in Australia.
On April 29, 2021, the Firm amended its mortgage with BDC Capital Inc. The modification consists of cancelling the second $2,500,000 tranche and adjusting the principal instalments to 47 month-to-month instalments of $25,000 commencing July 15, 2021, with a balloon fee of $1,325,000 payable on June 15, 2025. The variable mortgage bonus was additionally changed with a set bonus of $425,000, consisting of $225,000 in money and $200,000 in widespread shares. The fee of the mounted bonus will happen as early as doable, and no later than 10 days after the submitting of the Firm’s December 31, 2020 monetary statements.
CubicFarms’ three- and six-month monetary statements and administration’s dialogue and evaluation (“MD&A”) for the interval ending December 31, 2020, will likely be issued and filed on SEDAR at www.sedar.com on April 30, 2021, and will likely be obtainable on the identical day on CubicFarms’ web site at https://cubicfarms.com/investors/.
CubicFarms Techniques Gross sales
The Firm has entered into gross sales discussions with numerous firms in Canada and internationally and has developed vital gross sales leads for the acquisition of extra modules. It additionally expects to broaden gross sales with at the very least one present buyer within the coming 12 months. The Firm’s gross sales pipeline at present consists of people and corporations in Canada, Eire, the US, Africa, Puerto Rico, Europe, the Center East, and China. There will be no assurances that any of those pipeline alternatives will result in gross sales of modules or identification of accomplice farms.
Gross sales and Deposits
The Firm at present has a complete of 157 modules beneath contract and deposit. The quantity of system gross sales orders which can be pending manufacturing and set up is roughly USD$21 million.
The desk under reveals the initiatives beneath contract and deposit:
Variety of Modules
In the course of the three months ended December 31, 2020, the Firm signed contracts and obtained deposits for the initiatives under:
Variety of Modules
Standing of latest initiatives contracted throughout within the calendar 12 months ending Dec 31, 2020:
Put in, Skilled, Begin-up
Put in, Skilled, Begin-up
San Diego, USA
Income from system gross sales relies on the switch of authorized title upon the completion of the gross sales and supply course of, consisting of signing the acquisition settlement, buyer deposit, manufacture of modules, buyer’s website preparation, transport, and set up of the system. Unexpected delays attributable to the COVID-19 pandemic and the worldwide restoration efforts employed by each particular person firms and nations might delay the Firm’s completion of the module gross sales and supply course of. Primarily based on the Firm’s working plan recognized inside the MD&A dated November 30, 2020, the Firm’s ends in the October – December 2020 interval are in alignment with administration’s expectations. The Firm doesn’t anticipate to begin delivering modules for the Surrey, Canada mission till 2022, because of the massive scale of the anticipated CubicFarm System and the time for the chosen website to be ready.
The Firm considers a gross sales order to have taken place when a binding gear buy settlement is signed and a primary deposit has been offered. This forward-looking order quantity estimate is predicated on the Firm’s present gross sales pipeline and inside estimates of module demand and is topic to a number of dangers and uncertainties. See “Ahead-Trying Statements.”
1On January 19, 2021, the Firm introduced a change of economic year-end. The Firm has modified its fiscal year-end from June 30 to December 31 to align the monetary year-ends of the Firm and all its subsidiaries, in addition to with its friends. For particulars concerning the size and ending dates of the monetary intervals, together with the comparative intervals of the interim and annual monetary statements to be filed for the Firm’s transition 12 months and its new monetary 12 months, reference is made to the Discover of Change in Monetary 12 months-Finish filed by the Firm on SEDAR pursuant to Part 4.8 of Nationwide Instrument 51-102, a duplicate of which is obtainable electronically at www.sedar.com.
²University analysis article Hydroponic fodder and greenhouse fuel emissions: a possible avenue for local weather mitigation technique and coverage improvement was printed by Canadian Science Publishing in FACETS, the official journal of the Royal Society of Canada’s Academy of Science. It’s obtainable at https://www.facetsjournal.com/doi/full/10.1139/facets-2020-0066.
CubicFarms is a neighborhood chain, agricultural know-how firm creating and deploying know-how to feed a altering world. Its proprietary ag-tech options allow growers to supply prime quality, predictable produce and recent livestock feed with HydroGreen Vitamin Know-how, a division of CubicFarm Techniques Corp. The CubicFarms™ system incorporates patented know-how for rising leafy greens and different crops onsite, indoors, all 12 months spherical. CubicFarms offers an environment friendly, localized meals provide answer that advantages our individuals, planet, and financial system.
For extra info, please go to www.cubicfarms.com.
On behalf of the Board of Administrators
Dave Dinesen, Chief Govt Officer
Cautionary Assertion on Ahead-looking Data
Sure statements on this launch represent “forward-looking statements” or “forward-looking info” inside the that means of relevant securities legal guidelines, together with, with out limitation, statements with respect to CubicFarms’ anticipated income recognition, and the completion of the sale and set up of the system by the shopper. Such statements contain identified and unknown dangers, uncertainties, and different elements which can trigger the precise outcomes, efficiency, or achievements of CubicFarm Techniques Corp., or business outcomes, to be materially completely different from any future outcomes, efficiency, or achievements expressed or implied by such forward-looking statements or info. Such statements will be recognized by way of phrases comparable to “might”, “would”, “may”, “will”, “intend”, “anticipate”, “imagine”, “plan”, “anticipate”, “estimate”, “scheduled”, “forecast”, “predict”, and different comparable terminology, or state that sure actions, occasions, or outcomes “might”, “may”, “would”, “would possibly”, or “will” be taken, happen, or be achieved.
These statements mirror the Firm’s present expectations concerning future occasions, efficiency, and outcomes and communicate solely as of the date of this information launch. Consequently, there will be no assurances that such statements will show to be correct and precise outcomes and future occasions may differ materially from these anticipated in such statements. Besides as required by securities disclosure legal guidelines and laws relevant to the Firm, the Firm undertakes no obligation to replace these forward-looking statements if the Firm’s expectations concerning future occasions, efficiency, or outcomes change.
Neither the TSX Enterprise Alternate nor its Regulation Providers Supplier (as that time period is outlined within the insurance policies of the TSX Enterprise Alternate) accepts duty for the adequacy or accuracy of this launch.
SOURCE CubicFarm Techniques Corp.