CubicFarms has increased equity ownership in Swiss Leaf Farms, sold another System, and is shipping produce to major retailers.
VANCOUVER, Dec. 4, 2018 /CNW/ - Bevo Agro Inc. (TSXV: BVO) ("Bevo") and CubicFarm Systems Corp. ("CubicFarms") are pleased to announce the following updates regarding CubicFarms.
Increase in Equity Ownership in Edmonton Joint Venture
CubicFarms has executed a binding operating agreement with Swiss Leaf Farms that will increase CubicFarms' equity ownership of the 12-machine operation in Edmonton from 40% to 50%. As consideration for the increase in ownership, CubicFarms will loan a further $450,000 to Swiss Leaf Farms. This loan will be in the form of a zero-interest shareholder loan, repayable in five years. In addition to the previously disclosed capital arranged for this facility, the remainder of the facility will be funded by a loan from the Bank of Montreal. CubicFarms is currently in the process of installing machines at Swiss Leaf Farms and expects the facility will be operational by the end of this year.
Signed Equipment Sale Agreement for a 12 Growing Machine Facility
CubicFarms is excited to announce that it has executed an equipment sale agreement with a third-party located in Richmond, British Columbia. This equipment sale agreement is for 12 growing machines, two germination machines and one irrigation machine (collectively, a "System"). This will be the fifth CubicFarms facility in Canada and is expected to be installed in the second calendar quarter of 2019.
Strong Demand for Produce Grown in Pitt Meadows
CubicFarms is now shipping produce from its Pitt Meadows, British Columbia facility to local retailers, including Fresh Street Market and IGA. CubicFarms sold out of all produce on November 29, 2018. This was the first time CubicFarms' wholly-owned Pitt Meadows facility sold out of all produce.
"We are extremely excited to increase our ownership in the Swiss Leaf Farms facility and to have executed a sale agreement for another System," said Dave Dinesen, Chief Executive Officer of CubicFarms. "The demand for our produce shows that the market is strong for fresh, local, sustainably grown produce."
As previously announced on October 4, 2018, Bevo and Sun Pharm Investments Ltd. have entered into an arrangement agreement with respect to a reverse take-over of Bevo the distribution of shares of CubicFarms to Bevo shareholders by way of a plan of arrangement (collectively, the "Transaction").
About Bevo Agro
Bevo Agro is North America's leading supplier of propagated agricultural plants, operating approximately 53 acres of state-of-the-art greenhouse facilities on 98 acres of land in Langley, BC and 20 acres of land in Pitt Meadows, BC. The company has entered into a binding agreement to acquire 10.4 acres of greenhouse space on 50 acres of land in Aldergrove, British Columbia (the "Greenhouse Acquisition"). The Company's main products have been 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. Zenabis intends to convert the Bevo Langley greenhouse (2.1 million square feet) by March 2020. Zenabis will build and/or acquire additional propagation greenhouse space over the coming year in order to maintain all of Bevo's current food/floral propagation capacity while the current Langley facility is being converted.
CubicFarms® Systems Corp. is an Agriculture Tech and Vertical Farming technology company that utilizes revolutionary, patented technology to cultivate high-quality produce. Founded in 2015, the company's mission is to provide farmers around the world with efficient growing systems capable of producing predictable crop yields. Using its unique undulating growing system, CubicFarms® solves the two main challenges within the indoor farming industry: high electricity and labour costs. Currently, CubicFarms® cultivates living lettuce, living basil and microgreens at its own facility in Pitt Meadows, British Columbia and is partnering with other farmers to establish facilities around the world.
This news release contains statements that may constitute "forward-looking information" within the meaning of applicable Canadian securities legislation. Forward-looking information may include, among others, statements regarding the future plans, costs, objectives or performance of Bevo and CubicFarms, or the assumptions underlying any of the foregoing. In this news release, words such as "may", "would", "could", "will", "likely", "believe", "expect", "anticipate", "intend", "plan", "estimate" and similar words and the negative form thereof are used to identify forward-looking statements. Forward-looking statements should not be read as guarantees of future performance or results, and will not necessarily be accurate indications of whether, or the times at or by which, such future performance will be achieved. No assurance can be given that any events anticipated by the forward-looking information will transpire or occur. Forward looking information includes, without limitation, information and statements regarding the completion of the Transaction and related to the acquisition and installation of CubicFarms' Systems as referenced above. Forward-looking information is based on information available at the time and/or management's good-faith belief with respect to future events and are subject to known or unknown risks, uncertainties, assumptions and other unpredictable factors, many of which are beyond Bevo and CubicFarms' control. These risks, uncertainties and assumptions include, but are not limited to, those related to Bevo and CubicFarms described Bevo's Management Information Circular dated November 23, 2018, a copy of which is available on SEDAR at www.sedar.com. Actual events or results could differ materially from those projected in any forward-looking statements. Neither CubicFarms nor Bevo undertake any obligation, to update or revise any forward-looking information contained in this news release to reflect subsequent information, events or circumstances or otherwise, except if required by applicable laws.
SOURCE Bevo Agro Inc.
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