/NOT FOR DISTRIBUTION TO UNITED STATES NEWS WIRE SERVICES OR FOR
DISSEMINATION IN THE UNITED
STATES/
VANCOUVER, BC, Dec. 21, 2020 /CNW/ - CubicFarm Systems Corp.
("CubicFarms" or the "Company") (TSXV: CUB), a local chain,
agricultural technology company, announced today the closing of its
previously announced equity financing consisting of a bought deal
offering (the "Offering") of common shares of the Company (the
"Common Shares"), and a concurrent private placement.
The Offering was conducted through a group of underwriters
consisting of Raymond James Ltd. as lead underwriter and sole book
runner, and Canaccord Genuity Corp. (collectively, the
"Underwriters"), by way of a prospectus supplement to the
Company's short form base shelf prospectus dated December 14, 2020 (the "Prospectus").
Pursuant to the Offering, the Company issued a total of
12,777,777 Common Shares at a price of $0.90 per Common Share for gross proceeds to the
Company of $11,499,999, which
includes the exercise, in full, by the Underwriters of the
over-allotment option granted by the Company to purchase an
additional 1,666,666 Common Shares at a price of $0.90 per Common Share.
In addition, CubicFarms closed the previously announced private
placement with existing shareholder Harry
DeWit, CEO and President of Blue Sky Farms, LLC ("Blue Sky
Farms"), a Texas and Ohio-based dairy and farming business,
pursuant to which Blue Sky Farms purchased 5,222,300 Common Shares
at a price of $0.90 per Common Share
for gross proceeds to CubicFarms of $4,700,070 (the "Concurrent Private
Placement").
The net proceeds from the Offering and Concurrent Private
Placement will be used to support CubicFarms' continued global
growth, research and development efforts to optimize machine
yields, automation and functionality, expand addressable crop
varieties and for working capital and other general corporate
purposes.
Dave Dinesen, CubicFarms' CEO, commented, "Closing this
financing is significant for the Company as it provides us with
meaningful capital to continue executing on our global growth
strategy, and represents an entry point into our capital structure
for a number of validating investors. We're very excited about our
future, and the opportunity to help break the reliance on long
distance, global food supply chains with our "Local Chain"
agriculture technology, which will allow local farmers everywhere
and anywhere to grow produce or nutritious live green animal feed
in close proximity to where food is consumed."
No securities regulatory authority has either approved or
disapproved the contents of this news release. This news release
does not constitute an offer to sell or the solicitation of an
offer to buy, nor shall there be any sale or any acceptance of an
offer to buy these securities in any jurisdiction in which such
offer, solicitation or sale would be unlawful.
The Common Shares have not been, and will not be, registered
under the United States Securities Act of 1933, as amended (the
"U.S. Securities Act"), or any United
States state securities laws, and may not be offered or sold
in the United States without
registration under the U.S. Securities Act and all applicable state
securities laws or compliance with the requirements of an
applicable exemption therefrom. This press release shall not
constitute an offer to sell or the solicitation of an offer to buy
securities in the United States,
nor shall there be any sale of these securities in any jurisdiction
in which such offer, solicitation or sale would be unlawful.
About CubicFarms
CubicFarms is a local chain, agricultural technology company
developing and deploying technology to feed a changing world. Its
proprietary technologies enable growers around the world to produce
high quality, predictable crop yields. CubicFarms has two distinct
technologies that address two distinct markets. The first
technology is its CubicFarms™ system, which contains patented
technology for growing leafy greens and other crops indoors, all
year round. Using its unique, undulating-path growing system, the
Company addresses the main challenges within the indoor farming
industry by significantly reducing the need for physical labour and
energy, and maximizing yield per cubic foot. CubicFarms leverages
its patented technology by operating its own R&D facility in
Pitt Meadows, British Columbia,
selling the system to growers, licensing its technology and
providing vertical farming expertise to its customers.
The second technology is CubicFarms' HydroGreen system for
growing nutritious livestock feed. This system utilizes a unique
process to sprout grains, such as barley and wheat, in a controlled
environment with minimal use of land, labour and water. The
HydroGreen system is fully automated and performs all growing
functions including seeding, watering, lighting, harvesting, and
re-seeding – all with the push of a button – to deliver nutritious
livestock feed without the typical investment in fertilizer,
chemicals, fuel, field equipment and transportation. The HydroGreen
system not only provides superior nutritious feed to benefit the
animal, but also enables significant environmental benefits to the
farm.
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 use of proceeds from the Offering
and the Concurrent Private Placement; and the Company's ag-tech
solutions and technology. Such statements involve known and unknown
risks, uncertainties, and other factors which may cause the actual
results, performance, or achievements of CubicFarm Systems Corp.,
or industry results, to be materially different from any future
results, performance, or achievements expressed or implied by such
forward-looking statements or information including the factors
disclosed under "Risk Factors" in the Company's annual information
form for the year ended June 30,
2020, which is incorporated by reference in the Prospectus,
and those risks described in other documents incorporated or deemed
to be incorporated by reference in the Prospectus. 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.
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.
SOURCE CubicFarm Systems Corp.