CubicFarm Systems Corp. Announces Full Revocation of Cease Trade Order and Company Updates
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) annuncia la revoca completa del suo ordine di cessazione per inadempienza emesso dalla British Columbia Securities Commission il 16 gennaio 2025. L'azienda ha presentato tutti i documenti finanziari richiesti e ha fatto domanda per la reintegrazione su TSXV.
L'azienda affronta sfide finanziarie significative, inclusi inadempimenti su più prestiti: un prestito commerciale dell'agosto 2022, un'obbligazione convertibile di giugno 2022 e un prestito senior garantito dell settembre 2022. Attualmente sta affrontando un deficit di capitale circolante di $28 milioni, di cui circa il 50% è legato a prestiti da pagare.
La direzione sta negoziando attivamente estensioni e modifiche ai prestiti per annullare lo stato di inadempienza, il che potrebbe ridurre il deficit di capitale circolante della metà. L'azienda sta anche perseguendo diverse operazioni di vendita, sfruttando l'inventario esistente per soddisfare gli ordini con costi aggiuntivi minimi. Si prevede un impatto positivo dall'apprezzamento del USD rispetto al CAD, il quale dovrebbe avvantaggiare la posizione finanziaria della società.
CubicFarm Systems Corp. (TSXV: CUB) anuncia la revocación total de su orden de cese de operaciones por falta de presentación emitida por la Comisión de Valores de Columbia Británica el 16 de enero de 2025. La empresa ha presentado todos los documentos financieros requeridos y ha solicitado la reincorporación en TSXV.
La empresa enfrenta desafíos financieros significativos, incluidos incumplimientos en múltiples préstamos: un préstamo comercial de agosto de 2022, bonos convertibles de junio de 2022 y un préstamo a plazo senior garantizado de septiembre de 2022. Actualmente experimenta un déficit de capital de trabajo de $28 millones, con aproximadamente el 50% relacionado con préstamos a pagar.
La dirección está negociando activamente extensiones de préstamos y enmiendas para eliminar el estado de incumplimiento, lo que podría reducir el déficit de capital de trabajo a la mitad. La empresa también está persiguiendo varios acuerdos de ventas, aprovechando el inventario existente para cumplir con los pedidos con costos adicionales mínimos. Se espera que un impacto positivo del aprecio del USD frente al CAD beneficie la posición financiera de la empresa.
큐빅팜 시스템즈 Corp. (TSXV: CUB)는 2025년 1월 16일 브리티시컬럼비아 증권위원회에 의해 발부된 서류 미제출로 인한 거래 중지 명령의 전면 철회를 발표했습니다. 이 회사는 모든 필요한 재무 문서를 제출했으며 TSXV 재가입을 신청했습니다.
회사는 2022년 8월의 사업 대출, 2022년 6월의 전환 사채, 2022년 9월의 고정 담보 대출 등 다수의 대출에서 발생한 기본적인 금융 어려움에 직면해 있습니다. 현재 2800만 달러의 운영 자본 부족을 겪고 있으며, 이 중 약 50%가 변제해야 할 대출과 관련 있습니다.
경영진은 기본적인 불이행 상태를 해소하기 위해 대출 연장 및 수정 협상을 적극적으로 진행하고 있으며, 이는 운영 자본 적자를 절반으로 줄일 수 있습니다. 회사는 또한 최소한의 추가 비용으로 주문을 이행하기 위해 기존 재고를 활용하여 여러 거래를 추진하고 있습니다. CAD에 대한 USD의 상승으로 인해 회사의 재무 상태에 긍정적인 영향을 미칠 것으로 예상됩니다.
CubicFarm Systems Corp. (TSXV: CUB) annonce la révocation totale de son ordre de cessation d'activité en raison d'un défaut de dépôt émis par la Commission des valeurs mobilières de la Colombie-Britannique le 16 janvier 2025. L'entreprise a soumis tous les documents financiers requis et a demandé à être réintégrée sur TSXV.
L'entreprise fait face à d'importants défis financiers, notamment des défauts sur plusieurs prêts : un prêt commercial d'août 2022, des obligations convertibles de juin 2022 et un prêt à terme senior garanti de septembre 2022. Actuellement, elle connaît un décit de fonds de roulement de 28 millions $, dont environ 50 % sont liés à des prêts à rembourser.
La direction négocie activement des prolongations de prêts et des modifications pour annuler le statut de défaut, ce qui pourrait réduire le déficit de fonds de roulement de moitié. L'entreprise recherche également plusieurs accords de vente, tirant parti de l'inventaire existant pour exécuter des commandes avec des coûts additionnels minimes. Un impact positif de l'appréciation du USD par rapport au CAD devrait bénéficier à la position financière de l'entreprise.
CubicFarm Systems Corp. (TSXV: CUB) gibt die vollständige Aufhebung der von der British Columbia Securities Commission am 16. Januar 2025 ausgesprochenen Handelsaussetzung aufgrund von Nichterfüllung bekannt. Das Unternehmen hat alle erforderlichen Finanzdokumente eingereicht und einen Antrag auf Wiederherstellung an der TSXV gestellt.
Das Unternehmen steht vor erheblichen finanziellen Herausforderungen, darunter Zahlungsausfälle bei mehreren Krediten: einem Geschäftskredit aus August 2022, wandelbaren Anleihen aus Juni 2022 und einem senioren gesicherten Terminkredit aus September 2022. Aktuell leidet das Unternehmen unter einem Liquiditätsdefizit von 28 Millionen Dollar, von denen etwa 50 % auf ausstehende Kredite zurückzuführen sind.
Die Geschäftsführung verhandelt aktiv über Kreditverlängerungen und -änderungen, um den Status der Nichterfüllung zu klären, was das Liquiditätsdefizit halbieren könnte. Darüber hinaus verfolgt das Unternehmen mehrere Verkaufsabschlüsse und nutzt bestehende Bestände, um Bestellungen mit minimalen Zusatzkosten zu erfüllen. Ein positiver Effekt durch die Aufwertung des USD gegenüber dem CAD wird erwartet, der der finanziellen Situation des Unternehmens zugutekommen sollte.
- Potential reduction of working capital deficit by 50% if loan amendments are successful
- Expected revenue from upcoming sales deals using existing inventory with minimal additional costs
- Positive financial impact from USD appreciation against CAD
- Cease trade order fully revoked by BCSC
- Currently in default on multiple loans (business loan, convertible debentures, and senior secured term loan)
- $28 million working capital deficiency
- Risk of default, liquidity constraints, and legal issues if loan negotiations fail
- Trading remains suspended pending TSXV reinstatement review
Vancouver, British Columbia--(Newsfile Corp. - January 17, 2025) - CubicFarm® Systems Corp. (TSXV: CUB) ("CubicFarms" or the "Company"), a local chain agricultural technology company, announces that, further to its previous press release of July 15, October 2, October 24 and October 29, 2024, the Company is pleased to announce that on January 16, 2025, the British Columbia Securities Commission (the "BCSC"), as the principal regulator of the Company, issued a full revocation (the "Revocation") of the failure-to-file cease trade order that it previously issued against the Company dated July 15, 2024 (the "FFCTO").
The Company has filed (i) its audited annual financial statements, management's discussion and analysis and related certifications for the year ended December 31, 2023, (ii) its unaudited interim financial statements, management's discussion and analysis and related certifications for the three months ended March 31, 2024 and 2023, and (iii) its unaudited interim financial statements, management's discussion and analysis and related certifications for the three and six months ended June 30, 2024 and 2023 (collectively, the "Financial Disclosure Documents").
Copies of the Financial Disclosure Documents are available on the Company's SEDAR+ profile at www.sedarplus.ca. The Company has applied to the TSX Venture Exchange (the "TSXV") for reinstatement for trading. However, there can be no assurance of the outcome of the TSXV's reinstatement review.
Company Updates
The Company is in default on its business loan obtained on August 28, 2022, as amended from time to time, the convertible debentures issued on June 2, 2022, and its senior secured term loan dated September 20, 2022. The Company is in the process of negotiating extensions and amendments to these loans that will clear the default status of the loans. If successful, such extensions will also result in the loans becoming non-current and therefore reduce the working capital deficit by approximately
There are associated risks if the Company is not able to negotiate loan amendments as it can lead to challenges such as default, liquidity constraints, and potential legal risks. Operational flexibility may be limited, affecting business opportunities and workforce management. Additionally, there could be reputational impacts, credit rating downgrades, and pressure on stock price or investor confidence.
The Company is also negotiating several sales deals which it expects to be signed in the coming months. As the Company has a substantial amount of inventory with additional stock that has been previously impaired, this will be used to fulfil the sales with minimal additional costs incurred. As the Company's sales network grows, and as the Feed centers are completed, the Company will be able to generate more consistent revenue which will in turn reduce the working capital deficit.
In addition, the Company is experiencing a positive impact from the appreciation of the USD relative to the Company's functional currency of CAD. Deposits held in USD, which were previously made at lower exchange rates, have increased in value due to the strengthening of the currency. This will result in a gain on the Company's balance sheet and as deposits are converted to revenue at the higher exchange rates, this will also positively impact on the financial results.
The Company currently has a working capital deficiency of approximately
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 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.
For more information, please visit https://cubicfarms.com.
Contact info@cubicfarms.com for media or investors@cubicfarms.com for investor inquiries.
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: statements regarding the timing, review, completion and filing of the TSXV reinstatement application, the impact of the appreciation of the USD relative to the CAD; the renegotiation of the Company's debt; ongoing project completions, new contract signings and the future sale deals. Such statements involve known and unknown risks, uncertainties, and other factors and assumptions which may cause the actual results, performance, or achievements of CubicFarm Systems Corp., or industry results, to be materially different from any future results, performance, or achievements expressed or implied by such forward-looking statements or information including, without limitation, the risk of the Company not being reinstated with the TSXV and the other factors disclosed under "Risk Factors" in the Company's annual information form for the year ended December 31, 2022, and those risks described in other documents incorporated or deemed to be incorporated by reference in the prospectus. 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.
To view the source version of this press release, please visit https://www.newsfilecorp.com/release/237599
FAQ
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