- The conclusion of a wholesale finance arrangement for its animal feed sector has been announced by CubicFarm Systems Corp.
- Leo Benne leaves his positions as director of innovation and board member.
In order to provide floor plan financing for the sales of Automated Vertical Pastures™ to HydroGreen’s dealership network, CubicFarm® Systems Corp. (TSX: CUB) has announced that its animal feed division, HydroGreen, Inc., has entered into a wholesale program and support agreement with DLL Finance LLC. DLL is a part of the Rabobank Group, a global supplier of financial services with a focus on the food and agricultural sectors.
Subject to DLL’s credit approval, the Program offers interest-free financing for up to 180 days on all items sold by HydroGreen to its dealers. The sales proceeds will be paid to HydroGreen directly by DLL when the sales invoice is issued and DLL has approved the necessary dealer documents, less an initial charge rate that is compared to the 1-month Term Secured Overnight Financing Rate (“SOFR”). Dealers that meet the program’s qualifications will be subject to a number of curtailment schedules, ancillary fees, and interest rates depending on SOFR, plus a margin in the event that the term is extended over 180 days.
According to John de Jonge, President of HydroGreen and Interim CEO of CubicFarms, “We are very excited to partner with DLL and launch an effective wholesale financing solution that will help facilitate HydroGreen’s sales growth, accelerate our cash collection cycle, and enhance financial flexibility for our network of dealers. As we continue to market-penetrate the dairy and beef industries with our technology to increase feed nutrition, efficiency, and animal health, we think the Program will greatly reinforce our worldwide sales strategy.”
Leo Benne, who served as the company’s head of innovation and a member of the board of directors, has resigned from his positions at CubicFarms, the company also reports. “Mr. Benne, who worked closely with his father, Jack Benne, to create CubicFarms’ technology, has contributed his strategic insight and expertise in utilizing technology to produce large quantities of healthy plants. The Board appreciates his dedication and knowledge, according to Dan Burns, Chair of the Board of Directors. The future of ag-tech is bright, and I am looking forward to witnessing the Company’s next steps toward expansion in this fascinating industry, Leo Benne continued. “I appreciate all the great leaders and management at CubicFarms for all we have established and done together,” he said.