November 30, 2023


Good Living

Constructing Important Foundations to Lead Farming for the Long term: Q4 and Fiscal 2020 Letter to Shareholders from CubicFarms CEO

VANCOUVER, BC, Oct. 28, 2020 /CNW/ – CubicFarm® Units Corp. (TSXV: CUB) (“CubicFarms” or the “Corporation”) is pleased to deliver the subsequent concept from Dave Dinesen, Chief Executive Officer.

Dear Valued Shareholders and Buddies,

I want to thank you for your assist and determination to CubicFarms, from our earliest founding traders who saw the prospect and potential in our small personal corporation, to our new shareholders who have joined us following our community listing in July 2019.

Your help has helped us make sizeable strides due to the fact our founders Jack and Leo Benne started out building the initially prototype a 10 years in the past of what has grow to be our patented, automatic rising program for new produce. Currently, I want to supply you with a extra extensive understanding of our eyesight for the route in advance, what we have just lately attained and the basis we are laying to direct farming for the long run.

The Covid-19 pandemic that dominated a lot of existence in 2020 has drastically impacted meals systems all above the globe. The well being disaster upended intricate food stuff supply chains that had been presently inefficient. The food stuff assistance business was decimated though retail desire and food price ranges shot up. Transportation and distribution strains were disrupted, and border closures prevented overseas farm personnel from toiling the land. Covid-19 underscored the critical need for technological innovation to localize food manufacturing and shorten supply chains to give more predictable and trusted foods supply for our communities. &#13

Towards this backdrop, our units continue to promote. Our prospects admit the worth our methods carry to their functions by means of personal savings in land, labour, h2o and power. Growing indoors and maximizing crop produce for every cubic foot empower farmers to mature anyplace on earth, 365 days a year.

Gross sales highlights

  • In March 2020, we introduced our premier at any time sale of 100 CubicFarms equipment to be mounted in Surrey, British Columbia.
  • In July 2020, we declared yet another big sale of 16 CubicFarms machines to be set up in the Okanagan area of BC.
  • We claimed C$5,167,488 in income this fiscal yr from the pursuing orders:
    • 23 CubicFarms machines being put in in Calgary, Alberta.
    • 3 command rooms each delivered to Terramera and a BC-primarily based area farmer.
    • A HydroGreen livestock feed program sent to our new reseller in Tokyo, Japan.
    • Roughly C$517,000 is attributed to recurring revenues from regular shopper assistance subscriptions, and gross sales of consumables this sort of as seeds, vitamins and minerals and pieces.
  • Profits orders underneath contract and deposit, that are pending set up, total about USD$18 million, symbolizing 138 devices. Profits from equipment is dependent on the completion of the product sales and shipping and delivery course of action – consisting of the signing of the buy settlement, deposit payments, manufacture of devices, customer’s site planning, delivery and set up.

Machine installation is progressing well at our customer's site in Calgary. The project is scheduled for completion in November. (CNW Group/CubicFarm Systems Corp.)

Reflecting on a pivotal foundational calendar year that positions CubicFarms for advancement

Considering the fact that our listing on the TSX Enterprise Exchange very last July, we realized quite a few lessons on how to be a general public business, specifically the only Canadian public company in the vertical farming, managed-setting agriculture area. We ramped up outreach to retail and institutional traders to tell our special tale, and it has resonated especially nicely with ESG-centered traders who are ever more trying to find to make investments in organizations that positively effect food stuff protection, sustainability and the natural environment.&#13

We have strategically augmented our capitalization table with major ag-tech investor Ospraie Ag Science and dairy entrepreneur Harry DeWit, who are similarly as passionate about our technology and offer tremendous price to our company as a result of their field skills and community. 

A company is only as extraordinary as its folks, so we’ve taken measures to invest in our tradition and talent. In January 2020, we welcomed Jeff Booth as Chairman of our board. Jeff is a tech visionary and imagined chief who has assisted push lifestyle from the working day he received included in the business. He prospects our company strategic conferences each and every quarter, in addition to sitting on the board’s audit committee, and can help us set and obtain our goals. Chris Papouras from Ospraie Ag Science joined us last thirty day period as our most recent board member. We seem ahead to his properly-rounded abilities in production functions, finance, technological innovation and automation as we scale the business enterprise.

We also bolstered our administration workforce and their respective departments with appointments in vital roles, like Leo Benne as Chief Item Officer, Jo-Ann Ostermann as Main Purchaser Officer, Tim Fernback as Main Financial Officer, Sandy Gerber as Head of Marketing, and Dan Schmidt as Senior Vice President of Global Product sales. We’re happy to have assembled a substantial-calibre administration staff at the intersection of encounter in engineering, cultivation, production, revenue and advertising and marketing, to drive development at an intercontinental stage.

In January 2020, we shut our initial acquisition via an all-share transaction at an implied benefit of C$1.50 per CubicFarms frequent share. The acquisition of HydroGreen, Inc. opened a new enterprise vertical for CubicFarms, enabling us to provide a completely-automated indoor program for growing wholesome livestock feed to a new client phase – beef, dairy, equine, sheep, goats, poultry and swine producers. Feeding animals hugely digestible reside, environmentally friendly feed manufactured by the HydroGreen method not only accrues animal health rewards, but also delivers farmers with area, on-demand from customers availability of new feed all year spherical, unaffected by drought, snow or rain. With the world’s inhabitants nearing 10 billion individuals by 2050, and with grazing and arable lands under pressure and generally further than ability, the timing is suitable to bring HydroGreen to industry.  

Industrial-size HydroGreen system that is being tested at our newly upgraded South Dakota manufacturing facility. This system is a significant upgrade from the largest HydroGreen system currently for sale, and will enable us to serve even larger, industrial customers in the livestock production space. (CNW Group/CubicFarm Systems Corp.)

Innovation remains at the heart of our enterprise. We proceed to innovate both of those our devices and crops  to further more push program gross sales. We are fast paced studying means to refine our increase protocols to expand far more crop versions, as very well as make improvements to crop wellness and quality. We are also searching for techniques to make our devices additional economical, from each a hardware and application standpoint. At the ask for of our buyers, we produced and released our Control Home in June 2020, which allows growers to have finish manage more than the developing environment that is so vital for high yields and quality – a capacity especially very well suited for R&D. Within our Regulate Room, the temperature, humidity, lights and air stream can be appropriately calibrated to suit crop needs. In collaboration with Terramera – a further Ospraie Ag Science portfolio business – we are developing farming synthetic intelligence (AI) by integrating several facts sources, and applying machine studying and information science tactics to optimize crop yields inside of our method. Glance out for much more updates on our R&D development and breakthroughs soon.

R&D team members working on developing a light-sensor diagnosis tool to analyze data and simulated tests from crop trials to accelerate R&D discoveries. (CNW Group/CubicFarm Systems Corp.)

This year, our Purchaser Expertise staff labored to streamline the profits method and eliminate shopper discomfort factors. We launched CubicFarms Backyard garden, a consulting support for probable shoppers to aid tutorial them on the economics of CubicFarms units, including:

  • Economic approach: ROI calculation dependent on price of inputs, financing form, trade charge, etcetera.
  • Market place evaluation: Research outlining our customers’ agriculture market place possibilities, measurement, scope, opportunity distributors and constraints.
  • Govt summary: A thorough, strategic pitch deck tailor-made to support clients secure funding for a CubicFarms procedure.

As a revenue incentive, CubicFarms Backyard consumers can choose to utilize the prices of our consulting expert services towards a potential technique order.

Our Consumer Expertise workforce also formalized our Farm University instruction application, a in depth curriculum to get ready our shoppers and their employees with all they need to know to appropriately function their CubicFarms procedure. They are skilled on the equipment to support with preventative maintenance and troubleshooting routines, equipment functions, farm administration, environment up good quality management units, and escalating methods. Farm University also handles meals safety and compliance with the tools of Very good Agricultural Procedures. We are enthusiastic to construct out these providers to guidance our customers in each and every step of their journey to commercial manufacturing.  &#13

Our Calgary customers Marc Schulz and Joy Peacock attended our Farm School in July, where they learned how to operate a CubicFarms system safely and efficiently once it is fully installed at their site (CNW Group/CubicFarm Systems Corp.)

A search in advance

We will continue to strategically make and promote our brand name by differentiating our one of a kind know-how methods that assist our buyers to expand sustainably and profitably. We will execute our global product sales method of producing relationships with our distributors and dealers and tapping into their present shopper network, in addition to creating our in-house product sales teams. 

Our focused R&D team is concentrated on increasing our unique merchandise offerings to seize more whole addressable current market share. We program to grow our recurring income foundation by rolling out an expanding array of value-added services, this sort of as CubicFarms Garden consulting, as talked about higher than. Also, demanding margin growth is an ongoing aim, by pursuing offer chain efficiencies via enhanced sourcing methods, and improving upon procurement electricity and diminished producing for each device expenditures by way of boosting scale.

At last, the prosperous acquisition and integration of HydroGreen keeps us on the look out for other complementary companies that have opportunity as strategic acquisition targets, or synergistic partnerships that could arise with other corporations in the sector or Ospraie’s portfolio. &#13

In the coming 12 months, we count on more and more smoother sales cycles to support present for the capital needs to pursue our advancement objectives. We diligently laid the groundwork in the past yr to placement our business for achievement. We want to continue doing the job challenging to make certain all our endeavours up to this stage are worthwhile.

Thank you for staying on this journey with us.

Dave Dinesen

CubicFarms documents fourth quarter and 12 months-stop monetary outcomes

The Q4 and yr-conclusion financial statements and management’s discussion and assessment are accessible underneath the CubicFarm Methods profile on SEDAR at, or on the CubicFarms internet site at

Neither the TSX Venture Trade nor its Regulation Expert services Service provider (as that term is outlined in the policies of the TSX Undertaking Trade) accepts responsibility for the adequacy or precision of this release.

About CubicFarm® Devices Corp.

CubicFarm Methods Corp. (“CubicFarms”) is a technological know-how corporation producing and deploying engineering to feed a switching entire world. Its proprietary systems help growers about the earth to produce high good quality, predictable crop yields. CubicFarms has two distinctive systems that deal with two unique marketplaces. The initial technology is its CubicFarms™ procedure, which is made up of patented technological know-how for rising leafy greens and other crops indoors, all 12 months round. Applying its exclusive, undulating-route developing technique, the Enterprise addresses the key problems in just the indoor farming business by appreciably decreasing the need to have for physical labour and strength, and maximizing yield for every cubic foot. CubicFarms leverages its patented technology by functioning its personal R&D facility in Pitt Meadows, British Columbia, selling the system to growers, licensing its technological innovation and supplying vertical farming experience to its consumers.

The second know-how is CubicFarms’ HydroGreen system for escalating healthy livestock feed. This program makes use of a exceptional system to sprout grains, these types of as barley and wheat, in a controlled environment with nominal use of land, labour and drinking water. The HydroGreen program is completely automated and performs all expanding functions including seeding, watering, lighting, harvesting, and re-seeding – all with the press of a button – to provide nutritious livestock feed without the common expense in fertilizer, chemical substances, gasoline, industry tools and transportation. The HydroGreen process not only offers exceptional healthy feed to benefit the animal, but also enables major environmental added benefits to the farm.

Cautionary statement on forward-on the lookout information and facts&#13

Specific statements in this release constitute “ahead-searching statements” or “ahead-looking facts” within just the this means of relevant securities legislation, including, without having limitation, statements with regard to money position, enterprise technique, development procedures, budgets, operations, monetary results, plans, goals and other details that is not historical simple fact. This sort of statements entail identified and unfamiliar challenges, uncertainties, and other elements which may bring about the precise final results, efficiency, or achievements of CubicFarm Devices Corp., or business results, to be materially different from any foreseeable future results, overall performance, or achievements expressed or implied by these kinds of forward-hunting statements or details which includes the Business obtaining the acceptance of the Featuring from the TSX Venture Trade. These kinds of statements can be recognized by the use of text these as “may perhaps”, “would”, “could”, “will”, “intend”, “hope”, “believe”, “program”, “foresee”, “estimate”, “scheduled”, “forecast”, “forecast”, and other identical terminology, or state that certain actions, activities, or outcomes “may possibly”, “could”, “would”, “may well”, or “will” be taken, arise, or be obtained.  Forward-seeking statements are primarily based on the views and estimates of administration as of the date this kind of statements are manufactured and they are subject matter to regarded and unfamiliar pitfalls, uncertainties and other elements that may cause the precise final results, degree of action, performance or achievements of the Business to be materially distinct from individuals expressed or implied by this sort of ahead-searching statements or forward-seeking information. See “Cautionary Observe Regarding Ahead-Seeking Details” and “Risk Variables” in the Firm’s Once-a-year Info Variety which is out there on for a dialogue of the uncertainties, dangers and assumptions connected with these statements. We caution that the record of danger factors and uncertainties is not exhaustive and other aspects could also adversely have an effect on our final results. There can be no assurance that this sort of statements will establish to be precise, as precise benefits and long run occasions could vary materially from those expected in such statements. Accordingly, visitors must not area undue reliance on forward-on the lookout statements and ahead-wanting facts. Other than as expected by securities disclosure regulations and regulations applicable to the Corporation, the Firm undertakes no obligation to update these forward-hunting statements if the Company’s expectations regarding future functions, performance, or results modify. 

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