VANCOUVER, BC, July 21,
2023 /CNW/ - CubicFarm® Systems Corp.
("CubicFarms" or the "Company") (TSX: CUB), a leading local
chain agricultural technology company, announced that its ruminant
livestock feed subsidiary company, HydroGreen Inc.
("HydroGreen"), has signed a Memorandum of Terms
("MOT") with John Verway,
owner of Johann Dairy, which is a large dairy farm based in
Fresno, California. This
collaboration marks a step toward the rapid closure of a definitive
purchase agreement and is the second MOT signed with a large
California dairy in two weeks.
To service this collaboration, HydroGreen aims to establish a
facility in Riverdale, California
located at the Wilson Dairy, equipped with an initial phase of 10
HydroGreen GLS 808 machines housed in one building. Ten GLS 808
machines have the capacity to provide up to 34 tons of feed per day
which amounts to approximately 12,000 tons of feed annually per
building. HydroGreen has now sold out the full capacity of the
initial phase of the Riverdale Feed Facility.
Under the MOT with Johann Dairy, HydroGreen will deliver 10 tons
of HydroGreen "As Fed" Feed ("Feed") per day to Johann
Dairy. This project not only serves to validate HydroGreen's
in-field product, but it also presents an opportunity to expand its
sales to other dairy and beef operations in the region.
Furthermore, the undertaking aims to demonstrate the viability of
HydroGreen's innovative Feed as a Service ("FaaS") business
model and facilitate accelerated product adoption.
FaaS is an innovative agricultural model where HydroGreen builds
a regional feed hub facility equipped with Automated Vertical
Pastures™ and sells the sprouted-grain nutrition to livestock
feeding operations in the area. Having HydroGreen run operations at
the feed hub facilities guarantees optimal feed production, quality
control, and enhanced animal performance outcomes for
producers.
"It's a mutually beneficial solution—producers have a consistent
feed ingredient that optimizes digestion within their herd, and it
creates a recurring revenue stream for HydroGreen," says
John de Jonge, Interim CEO and
President of HydroGreen. "This collaboration will enable us to
showcase the outstanding capabilities of our Automated Vertical
Pastures™ and the positive impact they can have on animal
performance. We believe this project will serve as a compelling
testament to the effectiveness and sustainability of our solution,
while opening doors to future partnerships within the agricultural
industry."
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 estimated harvesting capabilities
of the machines, nutritional benefits of feed produced by the
machines and quality of the feed in general. 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. 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.
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 subsidiary
of CubicFarm Systems Corp. The CubicFarms™ system contains patented
technology for growing leafy greens and other crops on-site,
indoors, all year round. CubicFarms provides an efficient,
localized food supply solution that benefits our people, planet,
and economy.
SOURCE CubicFarm Systems Corp.
