CUB CubicFarm Systems Corp

VANCOUVER, BC, June 27, 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 J&D Wilson, a dairy and beef farming operation based in Riverdale, California. This collaboration marks a significant step towards the rapid closure of a definitive consulting agreement and purchase agreement between the two parties.

Under the terms of the MOT, HydroGreen will deliver 24 tons of HydroGreen "As Fed" Feed ("Feed") per day to J&D Wilson. 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 farmers 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.

"We are thrilled to forge this strategic partnership with J&D Wilson," said John de Jonge, Interim CEO and President of HydroGreen. "This collaboration will enable us to showcase the outstanding capabilities of our Automated Vertical Pastures™ and the positive impact they can have on livestock feed production. We believe this project will serve as a compelling testament to the effectiveness and sustainability of our solutions, while opening doors to future partnerships within the agricultural industry."

To service this collaboration, HydroGreen aims to establish a facility in Riverdale, California, equipped with an initial phase of 10 HydroGreen GLS 808 machines. Ten GLS 808 machines have the capacity to provide up to 34 tons of feed per day which amounts to approximately 12,000 tons of feed annually per building. HydroGreen's technology enables daily harvesting, resulting in up to 365 harvests annually, surpassing the typical two harvests achieved through traditional farming methods.

Jim Wilson, owner of J&D Wilson, stated, "We are excited to join forces with HydroGreen in this groundbreaking endeavor. The FaaS model enables us to count on consistent, highly digestible livestock feed every day, so we can continue to ensure the highest standards of animal nutrition and welfare at our farm."

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.