VANCOUVER, BC, Aug. 30, 2021 /CNW/ - CubicFarm® Systems
Corp. ("CubicFarms" or the "Company") (TSXV: CUB), a local
chain agricultural technology company, today reported its second
quarter financial and operating results for the three and six
months ended June 30, 2021.
"Throughout this quarter, we continued to focus on creating and
delivering world-leading technology that enables farmers to be
successful and grow," said Tim
Fernback, Chief Financial Officer, CubicFarms. "We're
equipping our current farmer partners with the newest version of
equipment available and ensuring our upcoming installations deliver
the highest possible productivity and efficiency for our customers.
Edoardo De Martin, our Chief
Technology Officer, is leading our highly-skilled technology and
product teams as we build the next generation of our CubicFarm
System and HydroGreen Grow System technologies. The work performed
by Edoardo's team in the quarter has allowed us to meet the recent
customer demand for larger CubicFarms and HydroGreen installations.
Site readiness for our HydroGreen Vertical Pastures™ is progressing
well at Burnett Land & Livestock Ltd. in Carpenter, Wyoming, with 12 commercial scale
modules announced on April 6, 2021.
Once installed, this HydroGreen Vertical Pastures™ will be the
largest automated indoor fresh livestock feed facility in the
world."
"Localizing food and feed production on a commercial scale
requires more than just product market fit," said Jeff Booth, Chair of CubicFarms' Board of
Directors. "It requires a system that can meet the needs of the
world's largest food and feed buyers. I am more excited than ever
about the opportunity in front of CubicFarms, and its ability to
execute to meet the demand."
Second Quarter Financial Results
- Revenue for the six months ended June
30, 2021, was $4,262,815, from
systems sales and revenue from other services and consumables,
slightly higher than the amount recorded in the same period of the
previous calendar year.
- The Company currently has a total of 176 modules under contract
and deposit. The amount of system sales orders that are pending
manufacturing and installation is approximately USD$23.3 million.
- The Company increased its workforce from 52 to 116 full-time
employees and contractors as of June 30,
2021, compared to the same period ending June 30, 2020.
- Revenue for the three months ended June
30, 2021, was $356,005.
Revenue in the three and six months ended June 30, 2021, includes HydroGreen equipment,
customer seeds and other consumables, and CubicFarm Gardens
consulting services sold in the period.
- Working capital increased from $15,244,610 as of December
31, 2020, to $30,133,283, as
of June 30, 2021, an increase of
98%.
- Net loss for the three months ended June
30, 2021, was $6,472,041, a
177% increase from the same period ending June 30, 2020. For the six months ended
June 30, 2021, the net loss was
$10,149,129, a 74% increase from the
same period of the previous calendar year.
- Research and development (R&D) expenses of $1,320,935 were incurred in the three months
ended June 30, 2021, an increase of
115% from the same period of the previous calendar year.
- General administrative expenses increased 43% to $3,279,358 for the three months ended
June 30, 2021, reflecting the
continued expansion of the Company's business and necessary
staffing additions.
Second Quarter Operational Highlights
- On April 5, 2021, the Company
announced a non-brokered private placement with Burnett Land &
Livestock Ltd.
- On April 6, 2021, the Company
announced an agreement with Burnett for 12 HydroGreen Grow System
beta modules, daily feed production supply, and includes
collaboration on a research program and feed analysis with
HydroGreen. This beta project, called HydroGreen Vertical
Pastures™, will include the first installation of the commercial
scale HydroGreen GLS808 modules on a large-scale farm.
- On April 20, 2021, the Company
was awarded a Nexus Innovation Award for HydroGreen's Vertical
Pastures™ Grow System, an automated, on farm fresh livestock feed
technology.
- On April 23, 2021, the Company
announced the sale of 18 modules of the CubicFarm System at a sale
price of US$2.7 million to BoomA Food
Group in Australia.
- On April 29, 2021, the Company
amended its loan with BDC Capital Inc.
- On May 14, 2021, the Company
announced the appointment of technology industry leader
Janet Wood to the Company's Board of
Directors.
- On May 17, 2021, the Company
announced that 12 HydroGreen Grow System modules have been
purchased by wholesale distributor Dihl Gros International for his
beef cattle customers. The sale of 12 HydroGreen Grow System
modules represents equipment sales of approximately C$2 million by the Company.
- On June 3, 2021, the Company
announced the closing of an Underwriting involving Raymond James
Ltd. as lead bookrunner, on behalf of a syndicate of underwriters,
pursuant to which the underwriters have agreed to purchase, on a
"bought deal" basis, 18,472,742 common shares of the Company at a
price of C$1.35 per common share for
aggregate gross proceeds of the Company of approximately
C$25.3 million. The financing was
originally announced on May 26, 2021,
and upwardly revised by announcement on May
27, 2021.
- The Company is contributing to the Sustainable Development
Goals outlined by the United Nations and will expand its reporting
in future quarters to include Environmental, Social, and Governance
(ESG).
The Company's second quarter financial statements and
management's discussion and analysis will be issued and filed on
SEDAR at www.sedar.com on August 30,
2021, and will be available on the same day on CubicFarms'
website at https://cubicfarms.com/investors/.
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
Neither the TSX Venture Exchange nor its Regulation Services
Provider (as that term is defined in the policies of the TSX
Venture Exchange) accepts responsibility for the adequacy or
accuracy of this release. This news release may contain
forward-looking statements which include, but are not limited to,
comments that involve future events and conditions, which are
subject to various risks and uncertainties. Forward-looking
statements are not guarantees of future performance and actual
results may vary materially from those statements. General business
conditions are factors that could cause actual results to vary
materially from forward-looking statements.
SOURCE CubicFarm Systems Corp.
