VANCOUVER, BC, Sept. 12,
2022 /CNW/ - CubicFarm® Systems Corp.
("CubicFarms" or the "Company") (TSX: CUB) a leading
local chain agricultural technology company, today announced
additional cost reduction measures to optimize operating efficiency
and accelerate its path to profitability. All amounts are in
Canadian dollars.
In addition to previously announced cost reduction measures, the
Special Committee of the Board of Directors has been working
closely with management to prioritize the Company's lines of
business. In order to focus on key ongoing strategic initiatives
and realign its corporate structure, the Company is further
reducing operating expenses by approximately $9.0 million on an annualized basis, consisting
of $6.4 million of payroll related
expenses and $2.6 million of
non-payroll related expenses.
Combined with previously announced cost reduction measures on
August 15, 2022, the Company has
provided notice to 87 employees or 50.4% of its workforce. This
translates to an estimated annualized savings of $15.6 million, or 50.3% of cash-based operating
expenses on a 12-month basis as of July 31,
2022.
"Today was a tough day at CubicFarms because exceptional people
will be leaving our company. I am grateful to each person for what
they have contributed; their world-class talents will continue to
have positive ripple effects, not only in our company, but for the
future of ag-tech and we owe them a debt of gratitude," said
Edoardo De Martin, interim Chief
Executive Officer.
De Martin added, "Going forward, CubicFarms will operate and
succeed as a nimble, cost-conscious business, driven by disciplined
growth and data from key strategic initiatives. In particular, our
HydroGreen systems put us in a great position with on-site US-based
manufacturing capability and an expanding dealer network, giving us
immediate access to the farm and cattle industries where there is
strong demand for our technologies. We must conserve agricultural
resources such as land, water, and energy using innovative indoor
growing technologies. Farmers around the world want nutritious
livestock feed for their animals and they need innovative solutions
to address drought, water shortages, and land scarcity
issues. As climate change, persistent drought, and long supply
chains continue to disrupt populations and economies, the demand
for our on-farm solutions has never been greater."
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 enables
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 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 Company's
growth strategy, the results of 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 may prove to be
inaccurate. 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.