- CubicFarm Systems Corp. announces the completion of a wholesale
financing program for its animal feed division
- Leo Benne resigns as Head of
Innovation and member, Board of Directors
VANCOUVER, BC, Nov. 23,
2022 /CNW/ - CubicFarm® Systems Corp.
("CubicFarms" or the "Company") (TSX: CUB), announces its
animal feed division, HydroGreen, Inc. ("HydroGreen"), is entering
into a wholesale program and support agreement (the "Program") with
DLL Finance LLC ("DLL") to provide floor plan financing for the
sales of Automated Vertical Pastures™ to HydroGreen's dealership
network. DLL is a division of Rabobank Group, a European-based
international financial services provider specializing in the food
and agriculture industries.
The Program provides interest-free financing for all products
sold by HydroGreen to its dealers for up to 180 days, subject to
DLL's credit approval. Upon issuance of the sales invoice and DLL's
approval of the required dealer documentation, HydroGreen will
receive the proceeds of sales directly from DLL, net of an initial
charge rate which is benchmarked with the 1-month Term Secured
Overnight Financing Rate ("SOFR"). Dealers qualified under the
Program will be subject to certain curtailment schedules and
ancillary fees customary to the financing, as well as interest
rates based on SOFR, plus a margin in the event of a term extension
beyond 180 days.
"We are very excited to partner with DLL and launch an effective
wholesale financing solution that will help facilitate HydroGreen's
sales growth, accelerate our cash collection cycle, and enhance
financial flexibility for our network of dealers," said
John de Jonge, Interim CEO of
CubicFarms and President of HydroGreen. "We believe the Program
will significantly strengthen our global sales strategy as we
continue our market penetration into the dairy and beef industry
with our technology to improve feed nutrition, efficiency, and
animal health."
The Company also announces that Leo
Benne, Head of Innovation, and member of the Board of
Directors, has resigned from his roles at CubicFarms. "Mr. Benne
played a key role in developing CubicFarms' technology along with
his father Jack Benne, and has
offered his strategic vision and knowledge in applying technology
to grow high yields of healthy plants. The Board is grateful for
his commitment and expertise," said Dan
Burns, Chair of the Board of Directors. Leo Benne added, "I thank all the talented
leaders and management at CubicFarms for what we have built and
accomplished together, the future of ag-tech is bright, and I look
forward to watching the Company's next steps towards growth in this
exciting sector."
For more information, please visit www.cubicfarms.com.
Forward looking and other
cautionary statements
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 Company's sales growth and global
sales strategy and financial flexibility provided to HydroGreen's
dealers as a result of the Program. Such statements involve known
and unknown risks, uncertainties, and other factors which may cause
the actual results, performance, or achievements to be materially
different from any future results, performance, or achievements
expressed or implied by such forward-looking statements. Such
statements can be identified by the use of words such as "intend",
"expect", "believe", "plan", "anticipate", "estimate", "scheduled",
"forecast", "predict", and other similar terminology, or state that
certain actions, events, or results "may", "can", "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.
About HydroGreen and
CubicFarms
HydroGreen's Automated Vertical Pastures™ technology produces
high-energy fresh forage at commercial scale 365 days a year using
a unique process to sprout grains, such as barley and wheat, in a
controlled environment with minimal use of land, labour, and water.
Automated Vertical Pastures™ not only provides a superior
nutritious feed to benefit the animal, improving feed efficiency,
cow health, nutrition, and performance outcomes, but also enables
significant environmental benefits to the farm while helping to
meet increasing demand for valuable farm-based inset and offset
carbon credits.
CubicFarms is a leading agricultural technology company
developing and deploying proprietary ag-tech technologies to 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 on-site,
indoors, year-round.
SOURCE CubicFarm Systems Corp.