CUB CubicFarm Systems Corp

VANCOUVER, BC, Aug. 3, 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"), has signed a Memorandum of Terms ("MOT") with Daniel Van Der Kooi, owner of Van Der Kooi Dairy, which is a large dairy farm based in Riverdale, California. Van Der Kooi has signed on to purchase 10,000 tons of sprouted-grain feed per year from HydroGreen's future feed facility in Riverdale, California.

Feed from the planned first building at the future Riverdale facility has been committed, so Van Der Kooi Dairy will purchase feed from a second building that will house 10 additional HydroGreen GLS 808 commercial-scale machines. A system of 10 GLS 808 machines can produce up to 34 tons of feed per day, which amounts to approximately 12,000 tons of feed per building annually. Therefore, Van Der Kooi's purchase of 10,000 tons per year represents most of the capacity of that second building.

This project not only serves to validate HydroGreen's in-field product, but it also presents an opportunity to expand its sales to other dairy and beef operations in the region. Furthermore, the undertaking aims to demonstrate the viability of HydroGreen's innovative Feed as a Service ("FaaS") business model and facilitate accelerated product adoption.

FaaS is an innovative agricultural model where HydroGreen will operate a regional feed facility and harvest the sprouted-grain nutrition from HydroGreen machines to sell to livestock feeding operations in the area. Having HydroGreen run operations at the feed facilities guarantees optimal feed production, quality control, and enhanced animal performance outcomes for producers.

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 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.

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.

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.