VANCOUVER, BC / ACCESSWIRE / March 2, 2020 / CubicFarm® Systems Corp. (TSXV: CUB) ("CubicFarms" or the "Company") is pleased to announce that it has finalized an agreement for the sale of 100 CubicFarms growing machines, and received a deposit in the amount of C$1.2 million from a commercial grower and agricultural product wholesaler based in the province of British Columbia, Canada. The customer had previously provided a deposit for a 12-machine system, and now has applied its deposit toward this revised order for 100 machines.
The 100-machine system represents a total of C$16.5 million in sales revenues to the Company, and is expected to be installed in two phases in Surrey, BC. The first phase, consisting of the installation of 26 growing machines and an irrigation system, is planned for installation this year, with the remaining machines planned for installation by mid 2022.
The Company has a current backlog at C$24.7 million representing 144 machines under deposit and awaiting installation - demonstrating continued sales momentum due in part to growing demand for its systems. The current backlog is anticipated to be recognized in revenue in mid-2020 to mid-2022.
The sale represents CubicFarms' largest to date, following on its 21-machine sale to a customer in Montana, USA - its largest sale in the US - and its 23-machine sale to a customer in Calgary, Canada.
Due to the close proximity of the customer's Surrey site to CubicFarms' headquarters, CubicFarms will provide a turn-key solution to the customer, by facilitating and managing site preparation and installation of the CubicFarms system - leveraging the experience the Company has gained from its R&D and production facility in Pitt Meadows, BC.
CubicFarms CEO Dave Dinesen commented: "We are extremely encouraged by the growth in sales we've enjoyed and the trend toward increasingly larger facilities. It reflects the demand emerging around the world for commercial-scale growing technology. Once installed, the system in Surrey will be one of the world's largest automated vertical-farming systems.
"We are excited to be working with our customer, an established multi-industry group with investments and operations in the agriculture, technology and health space. Our customer understands the importance of using technology to significantly improve yields in an environmentally sustainable manner, and we look forward to helping them scale up production of fresh local vegetables for their market in southwest British Columbia and beyond.
"We are also pleased to receive ongoing feedback from our existing machine customers about the quality of produce from our systems and resulting growth in demand for that produce."
Concurrent with the 100-machine sale, CubicFarms has entered into a Shareholders' Agreement with the customer and its associated companies with respect to a joint venture entity that will own and operate the 100-machine venture. As consideration for CubicFarms' 20% ownership in the joint venture, the Company will provide approximately C$342,000 in the form of a zero-interest loan.
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 farmers around the world to grow 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 farmers, licensing its technology and providing industry-leading 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.
Information contact
Kimberly Lim
[email protected]
Phone: +1-236-858-6491
www.cubicfarms.com
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 to the customer; timing and the completion of machine installation by mid 2022; benefits to the Company of the sale; the anticipated revenue recognition in mid 2020 to mid 2022; and the joint venture that will own and operate the 100-machine venture. 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. 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.
SOURCE: CubicFarm Systems Corp