CubicFarm Systems Corp. Announces FreshHub Validation Project Update

VANCOUVER, BC, Nov. 9, 2022 /CNW/ - CubicFarm® Systems Corp. ("CubicFarms" or the "Company") (TSX: CUB), a leading agricultural technology company, announces the preliminary results from Phase II of its project to validate its larger FreshHub configuration. CubicFarms' FreshHub System are a configuration of 96 modules occupying one acre with the potential to replace 100 acres of outdoor growing space.

FreshHub Validation Project

CubicFarms has completed Phase II of its project for the commercial validation of its larger FreshHub configuration using CubicFarm Systems' patented technology. CubicFarms recently completed its first successful harvest from the FreshHub configuration prototype project with two machines at its research and development facility in Langley, BC.

Prior to conducting Phase II testing, CubicFarms was targeting a viable cultivation output weight of 32 kg per machine per day of lettuce, with a target of this output level achieving a 20% return on invested capital in order to validate commercial earnings by the end of Phase III. The recently completed harvest achieved a maximum weight of 40 kg per machine, per day equivalent for a specific test configuration. On the basis of the data collected from this phase, the Company believes that there are many process optimizations that can further increase output per machine, per day.

Based on the Phase II cultivation output, the Company expects that the commercial earnings targets of FreshHub remain achievable, in particular that the larger FreshHub configurations will be able to achieve or outperform the target objective of a return on invested capital of 20%.

John de Jonge, Interim Chief Executive Officer of CubicFarms, stated, "I am very excited about the outcome of Phase II of our FreshHub validation project. The results are extremely promising, and I believe there is a clear path to commercialization for the FreshHub project alongside the current focus on our HydroGreen division."

Daniel Burns, Chair of the Board of Directors and Special Committee, added, "The FreshHub prototype project can demonstrate the potential for at-scale success of the patented CubicFarms technology, bringing the approach from a small-farm agriculture solution to an industrial-scale solution competitive with field-grown produce."

Phase III of the validation project will include three sub-phases, of which Phase III - A is currently underway:

	Intention	Target Commercial Outcome	Progress
Phase I	Proof of concept using latest CubicFarm System technology	Build and manufacture the FreshHub prototype modules	Complete
Phase II	Validate produce output	Growing the volume of produce necessary at scale and quality to run a FreshHub operation	Complete; validation achieved
Phase III - A	Validate commercial earnings	Optimize output for crops from the first harvest	Targeting November 2022
Phase III - B		Grow at least one alternative crop type (beyond lettuce)	Targeting December 2022
Phase III - C		Confirmation and validation of economics on the basis of optimized saleable product outcomes	Targeting February and March 2023

For more information, please visit www.cubicfarms.com.

On behalf of the Board of Directors

"Daniel Burns"

Daniel Burns, Chair of the Board of Directors

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 anticipated dates for completion of Phase III A, Phase III B, and Phase III C of the FreshHub Commercial Validation Project; and targeted commercial outcomes of the project. 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'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 enable 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.

SOURCE CubicFarm Systems Corp.

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