VANCOUVER, BC,
May 16, 2022 /CNW/
- CubicFarm® Systems Corp. ("CubicFarms" or the
"Company") (TSX: CUB), a leading local chain agricultural
technology company, today reported its first quarter financial and
operating results for the three months ended March 31, 2022.
"The Company continues to make steady progress with our Farmer
Partner installations and have begun Farm School operational
training for both BoomA Food Group from New South Wales in Australia and Vertical Acres from Indiana in the U.S.," said Daniel Burns, Chief Financial Officer,
CubicFarms. "Our team is focused on executing critical projects in
the coming quarters that will add value to the Company and our
stakeholders. While experiencing some delays due to disruptions to
the global supply chain and inclement weather impacting site
readiness of our Farmer Partners, we can expect our revenue will be
compressed into subsequent quarters of this year," said Burns.
"It's exciting to see the significant installation progress of
our beta project at Burnett's," said Dan
Schmidt, President of HydroGreen, a division of CubicFarms.
"With a dozen of our Automated Vertical Pastures™, our HydroGreen
Certified dealers will bring potential new customers to Burnett's
for tours to see it in action and hear about the remarkable animal
performance benefits."
"This quarter, we strategically strengthened the Company by
evolving our platform and indoor growing technologies," said
Dave Dinesen, Chief Executive Officer, CubicFarms. "As part of our
sustainability measurements, our data scientists and R&D team
are quantifying our plant and animal performance results as well as
our input efficiencies. Our recently announced energy efficiency
data demonstrates our leadership in the industry using 54 per cent
to 62 per cent less energy than typical vertical farms."
"The Company is continuously validating and benchmarking
measurements including energy, water, and methane emissions," said
Dinesen. "Findings include 24% methane reductions for dairy cows
fed HydroGreen fresh forage and up to 48% methane reductions in the
preliminary results from ongoing beef cattle feeding trials. These
will provide immense value for our Farmer Partners using our indoor
growing technologies and we look forward to sharing more
results."
First Quarter End Financial Results
- The Company currently has a total of 204 modules pending
installation. System sales pending manufacturing and installation
are valued at approximately USD $27.6
million.
- HydroGreen Certified Dealer commitments representing more than
100 machines for 2022 are valued at over $23
million.
- Revenue for the three months ended March
31, 2022, was $243,912.
- Net loss for the three months ended March 31, 2022, was $8,760,249, a 138% increase from the same period
ending March 31, 2021.
- General administrative expenses increased 22% to $3,938,348 for the three months ended
March 31, 2022, reflecting the
continued expansion of the Company's business and necessary
staffing additions.
- Research and development expenses of $2,509,018 were incurred in the three months
ended March 31, 2022, a 120% increase
from the same period of the previous fiscal year.
- The Company increased its workforce to 168 full-time employees
and contractors as of March 31,
2022.
First Quarter Operational Highlights
- On January 12, 2022, the Company
announced that Real Leaders® has named CubicFarms as one of the
newly selected winners of its 2022 Top Impact Companies from around
the world.
- On January 12, 2022, the Company
announced the appointment of G. David
Cole to the Company's Board of Directors. Cole is recognized
internationally as an accomplished senior financial executive with
nearly 40 years of corporate experience in building teams and
businesses in a broad range of global markets and economies.
- On February 7, 2022, the Company
announced that Tom Wiltrout has been
appointed to the Company's HydroGreen Business Advisory Board.
Wiltrout provides business consulting services for input
agriculture and the global seeds industry in his role as President
of Thirty Thirty, LLC. He's a senior executive at world-leading
agriculture investor group Ospraie Ag Science, LLC, a strategic
shareholder with approximately 16.6% ownership of CubicFarms.
- On February 15, 2022, the Company
announced a new HydroGreen Certified Dealer, Central Confinement
Service LLC ("CCS"), with initial sales commitments for 12
HydroGreen indoor growing systems to be delivered in 2022 valued at
$2.25 million. CCS is a leading
designer and builder of turn-key livestock and agriculture
facilities with more than 35 years of experience providing quality
construction and custom-built equipment to livestock
producers.
- On March 7, 2022, the Company
announced a sales agreement for 27 CubicFarm System modules in
Winnipeg, Manitoba, at a sale
price of $5.13 million. Experienced
greenhouse farmers Sheldon and Carrie
Enns operate the Green Valley Garden Centre, supplying
high-quality vegetables and ornamental plants in Southeastern Manitoba for the past 12
years.
- On March 10, 2022, the Company
appointed Daniel Burns, a member of
the Company's Board of Directors, as interim Chief Financial
Officer ("CFO"). He will step down as Chair of the Company's Audit
Committee to serve as interim CFO, effective April 1, 2022.
- On March 11, 2022, the Company
announced that South by Southwest® ("SXSW") has recognized the
Company's HydroGreen Automated Vertical Pastures™ as one of five
finalists in the "New Economy" category of the 2022 SXSW Innovation
Awards.
- On March 25, 2022, the Company
announced the appointment of Edoardo De
Martin as President of CubicFarms, in addition to his role
as Chief Technology Officer of the Company. Since joining
CubicFarms, De Martin has strengthened the Company's roadmap, built
a new software division, and assembled a world-class product and
technology team to deliver the next generation of indoor growing
technologies.
Subsequent to the End of the First Quarter
- On April 1, 2022, the Company
announced Mountainland Supply Company ("Mountainland") as a new
member of the HydroGreen Certified Dealer Network. Established in
1947 with 29 distribution branches, Mountainland has an agriculture
division specializing in irrigation services for farmer and rancher
customers in Utah, Wyoming, and Idaho.
- On April 27, 2022, the Company
announced the appointment of Carlos
Yam as CFO of the Company, effective June 27, 2022. With over 20 years of experience
as a senior financial executive for public and private companies,
Yam is a Chartered Professional Accountant (CPA, CA) in
Canada and Certified Public
Accountant in the United States
(Illinois) and holds a bachelor's
degree in Business Administration from Simon
Fraser University.
- On May 12, 2022, the Company
announced new data that demonstrates 54% to 62% less energy is used
in CubicFarm System modules compared to results reported by other
vertical farms surveyed by Agritecture in its 2021 global CEA
census report. With electricity being the number one input cost in
vertical farming, this is a significant advantage to customers
using the CubicFarm System technology.
The Company's fourth quarter financial statements and
management's discussion and analysis will be issued and filed
on SEDAR at www.sedar.com on May 16, 2022, and will be available on the same
day on CubicFarms' website
at https://cubicfarms.com/investors/.
About CubicFarms
CubicFarms is a leading 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.
For more information, please visit www.cubicfarms.com.
On behalf of the Board of Directors
"Dave Dinesen"
Dave Dinesen, Chief Executive Officer
This release may contain certain "forward-looking statements" or
"forward-looking information" under applicable securities laws.
Forward-looking terms such as "may," "will," "could," "should,"
"would," "plan," "potential," "intend," "anticipate," "project,"
"target," "believe," "plan," "outlook," "estimate," or "expect" and
other words, terms and phrases of similar nature are often intended
to identify forward-looking statements, although not all
forward-looking statements contain these identifying words.
Forward-looking statements are based on certain key expectations
and assumptions made by the Company. Although management of the
Company believes that the expectations and assumptions on which
such forward-looking statements are based are reasonable, undue
reliance should not be placed on the forward-looking statements
because the Company can give no assurance that they will prove to
be correct.
SOURCE CubicFarm Systems Corp.