VANCOUVER, British Columbia, October 17, 2024 – CubicFarm® Systems Corp.
(“CubicFarms” or the “Company”) (TSXV:CUB), a leading local chain agricultural technology
company, announces that, further to its previous press release of October 2, 2024, the
Company is pleased to announce that is has filed its first quarter financial and operating results
for the three months ended March 31, 2024, and the related management’s discussion and
analysis for the three months ended March 31, 2024 and related filings (collectively, the “Q1
Filings“). The Q1 Filings can be accessed under the Company’s profile at www.sedarplus.ca
and will be available on the same day on CubicFarms’ website at
https://cubicfarms.com/investors/.
First Quarter Operational Highlights
• Revenue for the three months ended March 31, 2024, was $0.02 million, compared to
$0.5 million in the prior year. As none of the ongoing projects were completed in the
period, there was no significant revenue recognized. In the first quarter, however, the
Company signed two significant sales agreements for the sale of eleven HydroGreen
GLS 808 and two DGS machines as announced in the January 3, 2024, and March 20,
2024 press releases .
• Corporate overhead, which included general and administrative, selling, and research
and development expenses was $3.8 million for the three months ended March 31,
2024, reduced by $4.4 million or 54% compared to $8.1 million in the prior year due to
the Company’s cost reduction plan that has continued through the year 2024.
• Net loss for the three months ended March 31, 2024 was $4.7 million, compared to $9.0
million in the prior year. The lower net loss in Q1 2024 was primarily due to the lower
operating expenses as mentioned above.
“As we move forward, CubicFarms is committed to continue operating as a lean, efficient
business focused on disciplined growth,” said Interim CEO of CubicFarms and President of
HydroGreen, John de Jonge. We continue to explore all options. With HydroGreen, we are wellpositioned
to serve the dairy and cattle industries, which have a strong demand for our technology and feed solution. The world continues to face challenges such as climate change, drought, and land scarcity, and so we remain dedicated to providing innovative indoor growing solutions that conserve agricultural resources and provide superior nutritious feed to benefit dairy and beef animals.”
The Company anticipates filing the interim financial statements for the three and six-month
period ended June 30, 2024, the related management’s discussion and analysis for the three month
period ended June 30, 2024, and related filings in respect of the period ended June 30,
2024 on or about October 25, 2024 (the “Q2 Filings”).
The British Columbia Securities Commission (the “BCSC”) as the principal regulator of the
Company issued a failure-to-file cease trade order (the “FFCTO”) against the Company on
July 15, 2024, under Multilateral Instrument 11-103 – Failure-To-File Cease Trade Orders In
Multiple Jurisdictions, prohibiting the trading in or the purchasing of any securities of the
Company by any person or company in Canada, including trades in the Company’s common
shares made through the TSX Venture Exchange, except in accordance with the following
conditions for so long as the FFCTO order remains in effect: a beneficial securityholder of the
Company who is not, and was not at the date of the FFCTO an insider or control person of the
Company, may sell securities of the Company acquired before the date of July 15, 2024 if both
of the following apply: (a) the sale is made through a “foreign organized regulated market”, as
defined in section 1.1 of the Universal Market Integrity Rules of the Canadian Investment
Regulatory Organization; and (b) the sale is made through an investment dealer registered in a
jurisdiction of Canada in accordance with applicable securities legislation. A copy of the FFCTO
has been posted to the BCSC website.
Following the filing of the Q2 Filings, the Company will file a revocation application to revoke the
FFCTO. The Company will provide further updates as they become available.
About HydroGreen
HydroGreen’s Automated Vertical Pastures™ technology utilizes a unique process to sprout
grains, such as barley and wheat, in a controlled environment with minimal use of land, labour
and water. HydroGreen’s fully automated indoor growing technology performs all growing
functions including seeding, watering, lighting, harvesting, and re-seeding—all with the push of
a button—to deliver nutritious fresh forage for livestock without the typical investment in
fertilizer, chemicals, fuel, field equipment, and transportation. Automated Vertical Pastures™ not
only provide superior nutritious feed to benefit the animal but also enable significant
environmental benefits to the farm.
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 https://cubicfarms.com.
Contact info@cubicfarms.com for media or investors@cubicfarms.com for investor inquiries.
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: statements regarding the timing, review, completion and filing of the
Q2 Filings, the revocation of the FFCTO, the two significant sales agreements for the sale of
eleven HydroGreen GLS 808 and two DGS machines, potential growth, a strong and future
prospects and demand for our technology and solutions. 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 or information including, without limitation, the risk of the Company not filing the Q2 Filings on time and the other factors disclosed under “Risk Factors”
in the Company’s annual information form for the year ended December 31, 2022, 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.