VANCOUVER, BC, Nov. 14,
2022 /CNW/ - CubicFarm® Systems Corp.
("CubicFarms" or the "Company") (TSX: CUB), reports its
quarterly financial and operating results for the three and nine
months ended September 30, 2022. All
amounts are in Canadian dollars, unless otherwise stated.
"With the recent leadership transitions now in place at the
board and executive level, CubicFarms is strategically focused to
be a leaner, profit-focused operation exercising financial
discipline," said Dan Burns, Board
Chair of CubicFarms. "The Special Committee of the Board of
Directors continues to review and evaluate our corporate structure
to explore strategic directions and options for HydroGreen and
CubicFarms. Our strategy is to achieve fiscal prudence through
continued cost controls while seeking new market potential for our
lines of business and new financing prospects."
"As a team we are expanding our pipeline and I am excited to see
the growing interest in our technologies from both domestic and
international markets," said John de
Jonge, Interim CEO. "We have implemented effective cost
control measures to continuously right-size our business and are on
track to reduce forward cash expenses by roughly 50%."
Highlights of 2022 Third Quarter Financial Results
- Revenue for the three months ended September 30, 2022, was $0.3 million, up from $0.2
million in the prior year. Revenue for the nine months ended
September 30, 2022, was $3.5 million, compared to $4.5 million in the prior year.
- Net losses for the three and nine months ended September 30, 2022, was $12.7 million and $30.5
million respectively, compared to net losses of $8.0 million and $18.1
million in the prior year. Included in the third quarter net
losses was a non-cash impairment of $3.5
million relating to the Company's CubicFarms business
unit.
- The Company's operating expenses, comprising of selling,
general & administrative and research & development
expenses, was $8.5 million for the
three months ended September 30, 2022
($8.3 million net of estimated
one-time expenses relating to employee terminations), reduced from
$8.8 million in the prior year and
$9.3 million for the three months
ended June 30, 2022. As a result of
the Company's recent implementations of cost reduction measures,
management expects further reductions in its run-rate expenses and
expects annualized savings of $15.6
million, or 49.4% of the Company's cash-based operating
expenses for the trailing 12-month period ended September 30, 2022.
The Company's third quarter financial statements and
management's discussion and analysis will be issued and filed on
SEDAR at www.sedar.com on November
14, 2022, and will be available on CubicFarms' website
at https://cubicfarms.com/investors/.
For more information, please visit www.cubicfarms.com.
On behalf of the Board of Directors
"Daniel Burns"
Daniel Burns, Chair of the Board
of Directors
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 strategy in respect of
cost controls while seeking new market potential and new financing
prospects, and expected savings from the Company's cost reduction
measures. 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.