LANGLEY, BC, Dec. 5, 2016 /CNW/ - Bevo Agro Inc. (BVO:TSXV) announces the completion of a private placement in CubicFarm Systems Corp. ("Cubic") pursuant to which Cubic has issued 64,250 Class A preferred shares at a price of $8.95 per share, for total proceeds of $575,037.50. The Class A preferred shares are convertible on 1:1 basis without payment of further consideration at the option of the holder, and are subject to automatic conversion if Cubic achieves certain milestones. Cubic is a private B.C. company of which Bevo currently owns 54% of the issued common shares. Bevo will own 51% of the issued common shares once the Class A preferred shares are converted in full, assuming no other common shares have been issued in the intervening period.
The proceeds of the placement will be used by Cubic for research, development and general working capital purposes.
Bevo Agro is North America's leading supplier of propagated agricultural plants, operating 53 acres of greenhouse facilities on 98 acres of land in Langley, BC and 20 acres of land in Pitt Meadows, BC. The Company's main products are the propagation of vegetable plants such as tomatoes, peppers, cucumbers, and other plants such as bedding plants, flowers and grasses. The Company markets its products to established greenhouse growers, nurseries and retail outlets throughout North America. The majority of Bevo's sales result from repeat orders through recurring multiyear contracts.
CubicFarm Systems Corp. is the worldwide licensee of Bevo Agro's patent pending Cubic Farming technology which has been several years in development and production. Incorporated in 2016, CubicFarms Systems is dedicated to managing the opportunity for businesses and entrepreneurs to own and operate a cubic farm by providing world- class systems, processes and support to the cubic farmer. Local and international marketing of the CubicFarm System will soon commence.
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 Bevo Agro Inc.
For further information: Jack Benne, President, Bevo Agro Inc., Phone: (604) 888-0420, Fax: (604) 888-8048, Email: firstname.lastname@example.org; Dave Dinesen, CEO, CubicFarm Systems Corp., Phone: 604-220-1370, Email: email@example.com