CubicFarm Systems Corp. Announces Completion of Wholesale Financing Program for HydroGreen and Resignation of Leo Benne
- CubicFarm Systems Corp. announces the completion of a wholesale financing program for its animal feed division
- Leo Benne resigns as Head of Innovation and member, Board of Directors
VANCOUVER, BC, Nov. 23, 2022 /CNW/ - CubicFarm® Systems Corp. ("CubicFarms" or the "Company") (TSX: CUB), announces its animal feed division, HydroGreen, Inc. ("HydroGreen"), is entering into a wholesale program and support agreement (the "Program") with DLL Finance LLC ("DLL") to provide floor plan financing for the sales of Automated Vertical Pastures™ to HydroGreen's dealership network. DLL is a division of Rabobank Group, a European-based international financial services provider specializing in the food and agriculture industries.
The Program provides interest-free financing for all products sold by HydroGreen to its dealers for up to 180 days, subject to DLL's credit approval. Upon issuance of the sales invoice and DLL's approval of the required dealer documentation, HydroGreen will receive the proceeds of sales directly from DLL, net of an initial charge rate which is benchmarked with the 1-month Term Secured Overnight Financing Rate ("SOFR"). Dealers qualified under the Program will be subject to certain curtailment schedules and ancillary fees customary to the financing, as well as interest rates based on SOFR, plus a margin in the event of a term extension beyond 180 days.
"We are very excited to partner with DLL and launch an effective wholesale financing solution that will help facilitate HydroGreen's sales growth, accelerate our cash collection cycle, and enhance financial flexibility for our network of dealers," said John de Jonge, Interim CEO of CubicFarms and President of HydroGreen. "We believe the Program will significantly strengthen our global sales strategy as we continue our market penetration into the dairy and beef industry with our technology to improve feed nutrition, efficiency, and animal health."
The Company also announces that Leo Benne, Head of Innovation, and member of the Board of Directors, has resigned from his roles at CubicFarms. "Mr. Benne played a key role in developing CubicFarms' technology along with his father Jack Benne, and has offered his strategic vision and knowledge in applying technology to grow high yields of healthy plants. The Board is grateful for his commitment and expertise," said Dan Burns, Chair of the Board of Directors. Leo Benne added, "I thank all the talented leaders and management at CubicFarms for what we have built and accomplished together, the future of ag-tech is bright, and I look forward to watching the Company's next steps towards growth in this exciting sector."
For more information, please visit www.cubicfarms.com.
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 sales growth and global sales strategy and financial flexibility provided to HydroGreen's dealers as a result of the Program. 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.
HydroGreen's Automated Vertical Pastures™ technology produces high-energy fresh forage at commercial scale 365 days a year using a unique process to sprout grains, such as barley and wheat, in a controlled environment with minimal use of land, labour, and water. Automated Vertical Pastures™ not only provides a superior nutritious feed to benefit the animal, improving feed efficiency, cow health, nutrition, and performance outcomes, but also enables significant environmental benefits to the farm while helping to meet increasing demand for valuable farm-based inset and offset carbon credits.
CubicFarms is a leading agricultural technology company developing and deploying proprietary ag-tech technologies to 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 on-site, indoors, year-round.
SOURCE CubicFarm Systems Corp.
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