CubicFarms Announces Further Expansion into International Markets

VANCOUVER, BC, Aug. 25, 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"), is further expanding into international markets through a Manufacturer's Representative Agreement between HydroGreen and Seehof Agrar GmBH.

Seehof Agrar GmBH is led by Jürgen Bustorf, a veteran dairy industry expert with over 25 years of experience in the European dairy industry with a specialization in commercial farming. Based in Dörnick, Germany, Seehof Agrar will promote and sell HydroGreen equipment to ruminant livestock producers in Europe as a direct response to a significant increase in interest from potential customers in the European Union. As part of the Manufacturer's Representative Agreement, Seehof Agrar has been granted exclusivity in the Middle East, select countries in the Asia Pacific region, as well as the European Union, excluding Italy, which will be handled by Feed Solutions LLC, HydroGreen's distribution Partner for the Italian market.

"We've pinpointed multiple international markets that represent a significant opportunity to advance adoption of sprouted grain as a beneficial feed ingredient for ruminant livestock," says HydroGreen's President, John de Jonge. "Seehof Agrar is a widely respected leader in the dairy industry and is well integrated in the European dairy markets and is uniquely positioned to support the international expansion of HydroGreen technology."

Following a period of prioritizing cost reduction, and in light of recently announced equipment sales in Italy, this agreement is part of CubicFarms' and HydroGreen's strategy to sell equipment to customers in subsidized markets. HydroGreen's solution has the potential to improve regional food security and reduce the environmental footprint of production agriculture, but the purchase of any capital equipment, including HydroGreen units can be prohibitive for producers. As such, markets where there are government-subsidized programs to assist farmers and ranchers are becoming increasingly relevant.

This plan is being executed in tandem with HydroGreen's recently announced domestic strategy, which is to build regional feed hub facilities to offer Feed as a Service ("FaaS") to beef and dairy producers, starting in in Riverdale, California.

"We're making progress in North America to educate the market and government agencies on our value proposition, while working to help secure funding opportunities for prospective customers. As a parallel effort HydroGreen sees opportunity in international markets where producers are already eligible to access existing funding programs to subsidize their purchase of HydroGreen equipment," says de Jonge.

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.

Contact [email protected] for media or [email protected] for investor inquiries. Contact [email protected] to reach HydroGreen's Producer Education Team.