Initial Sales Commitments Valued Over
CAD$10 Million
VANCOUVER, BC, Oct. 5, 2021 /CNW/ - CubicFarm® Systems Corp.
("CubicFarms" or the "Company") (TSX: CUB), a local chain
agricultural technology company, today announced two initial
dealers of its HydroGreen Certified Dealer Network to meet
increasing distribution demand for the Company's automated
HydroGreen technology for on farm growing of fresh green livestock
superfeed.
"We're thrilled to welcome seasoned on farm consultants Total
Dairy Solutions and Settje, our first two dealers, to help get this
technology into the hands of the farmers who need it now," said
Dan Schmidt, President, HydroGreen.
"With an established ag-tech customer base, they bring decades of
direct experience working with farmers in the dairy and beef
industries. Just like buying a tractor from a certified local
dealer, our HydroGreen Certified dealers will support local sales,
installations, and customer experience."
Total Dairy Solutions US, LLC ("TDS"), a global leader in dairy
farm solutions, signed a non-binding letter of intent ("LOI") to
become an official member of the HydroGreen Certified Dealer
Network selling the HydroGreen Grow System indoor growing
technologies to their customers. Settje Agri Services &
Engineering Inc. ("Settje"), the U.S. Midwest's premier provider
for livestock engineering and design systems with a focus on the
beef cattle industry, signed a LOI with HydroGreen to provide
consulting and engineering services in building out this new
Certified Dealer Network.
In aggregate, the HydroGreen Certified Dealer Network members
TDS and Settje have committed to an initial 54 HydroGreen Grow
System modules under contract by the end of 2022, to be installed
once the Farmer Partners have confirmed site readiness. The first
tranche of committals for 2022 will provide a minimum value of
CAD$10 million for the Company. With
the new Certified Dealer Network, HydroGreen has a total production
pipeline of over 100 modules, with revenue recognized once
installations are complete.
"We're thrilled about this new partnership with HydroGreen,"
said Kevin Fiske, Chief Executive
Officer, TDS. "With over 200 employees servicing more than 400
dairies, our job is to source best-in-class ag-tech like HydroGreen
to deliver to farmers in our network. TDS is a trusted source of
innovation and on farm ag-tech solutions that focuses on
sustainability for the future. Drought is causing feed prices
to increase for farmers and dairies that cannot get access to high
quality feed. Cows are smaller, weighing an average of 15 pounds
less at market than last year. We believe HydroGreen provides the
high-quality feed needed for a high-performance herd."
"We immediately understood the growing demand for HydroGreen
when we toured the HydroGreen's Innovation Center," said
Steve Westerbuhr, Head of
Engineering, Settje. "More than one third of cattle in the U.S.
have grazed under drought conditions in 2021. HydroGreen enables
farmers to grow their feed using 90 percent less water, providing
up to 365 harvests per year, both key factors in becoming more
independent and continuing to grow sustainably."
"This is an important go to market strategy as we enter a growth
and expansion phase of the business," said Dave Dinesen, Chief
Executive Officer, CubicFarms. "Our intention is to continue adding
best-in-class HydroGreen Certified dealers like Settje and TDS to
better serve our Farmer Partners across North America."
About CubicFarms
CubicFarms is a 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.
These forward-looking statements are based on certain
assumptions that the Company has made in respect thereof as at the
date of this press release regarding, among other things, the
negotiation of a definitive agreement in respect of the
transactions contemplated by the LOIs on satisfactory terms.
SOURCE CubicFarm Systems Corp.