VANCOUVER, BC, May 15, 2023
/CNW/ - CubicFarm® Systems Corp. ("CubicFarms" or the
"Company") (TSX: CUB), reports its quarterly financial and
operating results for three months ended March 31, 2023. All amounts are in Canadian
dollars, unless otherwise stated.
First Quarter Financial Results
- Revenue for the three months ended March
31, 2023 was $455,392, up from
$243,912 in the previous year.
- Net losses for the three months ended March 31, 2023 were $4.7
million, compared to a net loss of $8.8 million in the previous year.
- As a result of the Company's recent cost reduction measures,
operating expenses, comprising of selling, general &
administrative and research & development expenses, was
$3.9 million, reduced from
$8.1 million in the previous
year.
First Quarter Operational Highlights
- On January 17, 2023, the Company
announced the lease of FreshHub machinery and equipment to Langley
Indoor Produce Ltd., of which CubicFarms has the option to retain
up to 97.6% of the equity interest of this entity. As part of this
transaction, CubicFarms granted a license for the underlying
FreshHub intellectual property to Langley Indoor Produce Ltd. The
use of the license grant is limited to the indoor,
non-containerized implementation of the CubicFarms patented
equipment. Ongoing funding of Langley Indoor Produce Ltd. will come
from third-party investors.
- On March 7, 2023, the Company
announced that its livestock feed subsidiary company, HydroGreen,
Inc. had finalized the installation of two previously sold machines
to Jim Cheney Inc. in Utah.
- On March 17, 2023, the Company
announced that it had closed its previously announced overnight
marketed public offering, issuing a total of 56,027,000 units at a
price of $0.05 per unit for gross
proceeds of $2,801,350, including
10,261,000 units issued to reduce working capital obligations of
the Company for $513,050 in
payables.
"We are pleased to report our first quarter financial results,
which demonstrate revenue growth and a significant reduction in net
losses compared to the previous year. Our diligent cost reduction
measures have yielded positive results, with operating expenses
substantially reduced," said Interim CFO Michael Kyne. "Additionally, our strategic
partnerships and successful installations continue to drive
operational progress. We remain committed to delivering value to
our shareholders and pursuing opportunities for sustainable growth
in the agricultural industry."
The Company's first quarter financial statements and
management's discussion and analysis will be issued and filed on
SEDAR at www.sedar.com on May 15,
2023, and will be available on CubicFarms' website
at https://cubicfarms.com/investors/.
About HydroGreen
HydroGreen produces Automated
Vertical Pastures™, a type of smart farming equipment that uses a
unique process to sprout grains such as wheat and barley, in a
controlled growing environment to efficiently produce a
high-performance feed ingredient for livestock 365 days a year.
HydroGreen's equipment is simple and easy to operate and performs
all growing functions automatically, including seeding, watering,
lighting, harvesting, and re-seeding, which allows livestock
businesses to feed consistent nutrition every day with minimal
labour. When balanced correctly in the ration, HydroGreen sprouted
grain modifies animal digestion which enhances productivity and
reduces the amount of enteric methane emitted in ruminant
livestock. The result also enables environmental benefits to the
farm while helping to meet increasing demand for valuable
farm-based inset and offset carbon credits.
About CubicFarms
CubicFarms is a leading 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.
Forward looking and other cautionary statements
This release may contain certain "forward-looking statements"
or "forward-looking information" under applicable securities laws.
Such statements involve known and unknown risks, uncertainties, and
other factors and assumptions 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. 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.
SOURCE CubicFarm Systems Corp.
