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About CubicFarm Systems Corp.
CubicFarm Systems Corp. (TSXV: CUB, OTC Pink: CUBXF) is a pioneering agricultural technology company dedicated to transforming the global food supply chain through innovative, localized farming solutions. Headquartered in Vancouver, British Columbia, CubicFarms develops and deploys proprietary ag-tech systems that enable year-round, efficient production of high-quality crops and livestock feed. The company's mission is to address critical challenges in agriculture, such as climate change, resource scarcity, and food security, by providing scalable, sustainable solutions.
Core Business Areas
CubicFarms operates across two primary segments:
- Fresh Produce Systems: The CubicFarms™ system employs patented vertical farming technology to grow leafy greens and other crops indoors. This automated, modular system minimizes land, water, and labor requirements while ensuring consistent, high-quality yields. By enabling localized food production, the system reduces supply chain dependencies and environmental impact.
- HydroGreen Nutrition Technology: A division of CubicFarms, HydroGreen focuses on livestock feed innovation. Its Automated Vertical Pastures™ technology uses a fully automated process to sprout grains like barley and wheat in a controlled environment. This system delivers fresh, nutrient-rich forage for livestock with minimal use of land, water, and labor, offering significant environmental and economic benefits to farmers.
Market Position and Differentiators
CubicFarms is uniquely positioned in the agricultural technology sector, combining advanced engineering with a commitment to sustainability. The company's patented technologies, such as the HydroGreen Automated Vertical Pastures™ and CubicFarms™ systems, set it apart from competitors. These innovations enable efficient, localized food production, reducing reliance on traditional farming methods that are resource-intensive and vulnerable to climate disruptions. Additionally, the company's Feed-as-a-Service (FaaS) model introduces a recurring revenue stream, further strengthening its market presence.
Industry Context
The agricultural technology industry is experiencing rapid growth, driven by the need for sustainable farming practices and resilient food supply chains. CubicFarms addresses these demands by offering solutions that conserve resources, reduce greenhouse gas emissions, and provide consistent output. The company's focus on both plant-based and livestock feed markets allows it to cater to diverse customer needs, from urban farmers to large-scale livestock operations.
Challenges and Opportunities
While CubicFarms faces challenges such as high upfront capital costs and market adoption barriers, its innovative solutions position it to capitalize on emerging trends. The increasing global focus on climate-smart agriculture and sustainable food systems presents significant growth opportunities. By leveraging its cutting-edge technologies and strategic partnerships, CubicFarms is well-equipped to navigate the evolving agricultural landscape.
Conclusion
CubicFarm Systems Corp. exemplifies the potential of agricultural technology to revolutionize food production. Through its innovative systems and commitment to sustainability, the company is addressing some of the most pressing challenges in modern agriculture. With a strong foundation in patented technologies and a growing global footprint, CubicFarms is poised to play a pivotal role in shaping the future of farming.
CubicFarm Systems Corp. (CUBXF) has expanded its partnership with BoomA Food Group in Australia through an extended exclusivity agreement. The company announced the sale of two DGS 66 Units for deployment in New South Wales, establishing a Proof of Concept and research program.
HydroGreen's automated feed systems offer significant advantages, using up to 95% less water than traditional field irrigation methods. This technology is particularly relevant for Australia's livestock sector, which manages approximately 28.8 million head of cattle as of 2023.
The system automates the entire feed production process, including seeding, watering, lighting, harvesting, and re-seeding, providing consistent, nutrient-dense feed while reducing labor requirements. This partnership aims to strengthen Australia's position in premium beef and dairy exports, particularly for Asian markets, while promoting sustainable agricultural practices.
CubicFarm Systems Corp. (CUBXF) has announced the successful launch of its first Feed-as-a-Service (FaaS) facility in Wakeeney, Kansas, through its subsidiary HydroGreen Inc. The facility, developed in partnership with Plainview Beef , began operations in November 2024, following plans announced in April 2024.
The Phase 1 facility produces fresh sprouted feed rich in Omega 3, Omega 6, natural sugars, and enzymes for beef cattle. Following successful three-month feed trials, Plainview Beef has committed to Phase 2 expansion, planning to add 5 GLS 808 modules in 2025.
This milestone establishes a recurring revenue model for HydroGreen through direct feed sales to livestock operations. The partnership, which has been in development for 18 months, aims to provide healthier grass-fed beef options to American consumers while improving bovine health and meat quality.
CubicFarm Systems Corp. (TSXV: CUB) has been granted four new patents for its HydroGreen hydroponic growing technology, advancing its position in sustainable agriculture. The patents cover:
1. A rotating seed bed technology that optimizes plant growth through various stages
2. An advanced moving belt system for controlled seed bed cultivation maximizing nutrient uptake
3. A unique dispensing system for streamlined harvesting in high-volume operations
4. A precision controller system that automates operations and monitors plant health while reducing water usage
These innovations aim to enhance large-scale hydroponic farming efficiency, focusing on soil-free cultivation methods that maximize yield while minimizing resource consumption.
CubicFarm Systems Corp. (TSXV: CUB) has secured a significant repeat order from Agrotopia Ireland for seven additional GLS 808 HydroGreen machines, following their initial purchase of one unit announced in January 2024. This expansion comes after a successful 90-day feed trial at Finnegan's Farm in County Meath, Ireland.
The trial demonstrated notable results including faster weight gains, improved carcass grades, and reduced feeding costs. The GLS 808 system enables daily production of fresh, nutrient-rich feed, reducing dependency on imports and improving sustainability. Since its launch in July 2024, the system has gained significant attention, particularly after its showcase at Ireland's National Ploughing Championships.
Agrotopia Ireland, which has an exclusive partnership with HydroGreen, reports strong interest from farming operators across Ireland, the UK, Europe, and the Middle East, with expectations of additional orders by Q4 2025 and further expansion in 2026.
CubicFarm Systems Corp. (TSXV: CUB) has announced that its subsidiary, HydroGreen Inc., has secured a sales agreement with Consultant BRD of Québec for their Automated Vertical Pastures™ system. The deal, valued at $809,000 USD (approximately $1,193,000 CAD), marks HydroGreen's first sale in Québec and its entry into the fourth country after the United States, Italy, and Ireland.
The agreement includes HydroGreen's advanced feed-growing equipment, accessories, and comprehensive support package with remote monitoring services. The system enables year-round, on-site production of livestock feed, supporting sustainable farming practices.
The company also highlighted its currency exposure, noting that while HydroGreen conducts all business in US dollars, the majority of CubicFarms and HydroGreen's debt is in Canadian dollars. Management views recent exchange rate changes as beneficial for strengthening the company's financial position.
CubicFarm Systems Corp. (TSXV: CUB) announced the lifting of its cease trade order and resumption of trading on the TSX Venture Exchange on January 31, 2025. This follows the completion of their 2023 audit and filing of unaudited Q1, Q2, and Q3 financial statements, bringing the company back into regulatory compliance.
The company's subsidiary, HydroGreen Inc., reported completing three sales agreements in Q4 with Agrotopia Ireland, Golden Rule Dairy of Arizona, and Advanced Dairy Systems of Arizona, totaling $629,242.82 USD (approximately $906,109.66 CAD). Revenue recognition occurs upon transfer of equipment control to customers, while installation service revenue is recognized upon completion and customer sign-off.
CubicFarm Systems Corp. (TSXV: CUB) has announced the reinstatement of its common shares trading on the TSX Venture Exchange following the revocation of a failure-to-file cease trade order (FFCTO) on January 16, 2025. The FFCTO was initially issued by the British Columbia Securities Commission on July 15, 2024.
The company disclosed that interim CEO John de Jonge and his wholly-owned company provided an unsecured, interest-free loan of $1,288,438 as of September 30, 2024, to support working capital and operational needs. This transaction, while constituting a related party transaction, is exempt from formal valuation and minority shareholder approval requirements.
Additionally, CubicFarms is involved in a legal claim from November 21, 2021, regarding an alleged breach of a consulting agreement. A mediation is scheduled for April 2025, and the company maintains a strong position in its defense, stating the claim is not expected to materially affect its business operations or financial condition.
CubicFarm Systems Corp. (TSXV: CUB) announces the full revocation of its failure-to-file cease trade order by the British Columbia Securities Commission on January 16, 2025. The company has filed all required financial documents and applied for reinstatement on TSXV.
The company faces significant financial challenges, including defaults on multiple loans: a business loan from August 2022, convertible debentures from June 2022, and a senior secured term loan from September 2022. Currently experiencing a $28 million working capital deficiency, with approximately 50% related to loans payable.
Management is actively negotiating loan extensions and amendments to clear default status, which could reduce the working capital deficit by half. The company is also pursuing several sales deals, leveraging existing inventory to fulfill orders with minimal additional costs. A positive impact from USD appreciation against CAD is expected to benefit the company's financial position.
CubicFarm Systems Corp. (TSXV: CUB) has filed its Q3 2024 financial results, reporting revenue of $57,000 and $208,000 for the three and nine months ended September 30, 2024, respectively. The company achieved significant cost reductions, with corporate overhead decreasing by 22% to $1.7 million in Q3 compared to the previous year. Net loss for Q3 was $2.6 million, up from $2.2 million last year due to foreign exchange adjustments, while the nine-month net loss improved to $7.0 million from $10.9 million.
The company remains under a failure-to-file cease trade order (FFCTO) issued by the BCSC on July 15, 2024. Following Q2 filings, CubicFarm has submitted revocation and reinstatement applications to the BCSC and TSXV respectively, and is awaiting responses after addressing their information requests.
CubicFarm Systems Corp. (TSXV: CUB) has announced its upcoming annual general meeting scheduled for January 10, 2025, to be held virtually due to ongoing postal strikes in Canada. The company will rely on CSA Coordinated Blanket Order 51-931 for exemption from sending physical proxy materials.
Key meeting agenda items include financial statements review, election of four directors, auditor appointments, and notably, approval of amendments to the company's Stock Option Plan. The proposed changes would increase shares reserved for issuance from 3,566,944 to 7,897,914 common shares, representing 20% of outstanding shares.
Meeting materials are available on SEDAR+ and the company's website. Shareholders can vote through online platforms or by contacting Computershare Investor Services for voting instructions.
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