Key Takeaways:
- CubicFarms has sold two DGS-66 Production Systems to Upgrowth Ag through its subsidiary, HydroGreen Inc.
- Upgrowth Ag aims to enhance sustainable livestock feed options in the US and Asia.
- The sale highlights HydroGreen’s commitment to advancing sustainable agricultural solutions.
- The DGS-66 Production System ensures consistent, year-round forage production, crucial for livestock health.
- This partnership blends traditional farming with modern agricultural technology for global scalability.
Strategic Sale to Upgrowth Ag
CubicFarm® Systems Corp. (TSXV: CUB), a prominent agricultural technology company, has announced a significant sale through its ruminant livestock feed subsidiary, HydroGreen Inc. The transaction involves the sale of two DGS-66 Production Systems to Upgrowth Ag, a Utah-based company dedicated to improving sustainable livestock feed options for the international market. The payment terms include an initial 50% payment, with the remaining 50% due upon shipment confirmation.
Upgrowth Ag’s Vision for Sustainable Agriculture
Upgrowth Ag aims to revolutionize agricultural practices and expand scalability within the United States and Asia. Founded through an East-West partnership, the company integrates traditional farming insights with modern agricultural technology. Their focus includes introducing vertical fodder growth systems to Korea, Japan, Mongolia, and eventually, the broader Asian market.
HydroGreen’s Innovative Technology
John de Jonge, President of HydroGreen, expressed the significance of this sale. “The DGS-66 systems are ideally tailored to the needs of innovative farms like those operated by Upgrowth Ag, which are both traditional and forward-looking,” he said. “These systems enable farmers to significantly enhance both the capacity and sustainability of their operations. Our technology offers the ability to produce high-energy, nutritious fresh forage 365 days a year, underpinning a revolution in how farmers approach animal agriculture.”
Benefits of the DGS-66 Production System
The DGS-66 Production System is designed for controlled environments, ensuring the daily production of fresh forage regardless of external weather conditions. This technology guarantees consistent, year-round feed quality, which is critical for livestock health and productivity. The system’s ability to produce high-energy, nutritious forage supports the sustainability and efficiency of agricultural operations.
Commitment to Sustainable Agricultural Solutions
HydroGreen’s partnership with Upgrowth Ag underscores its commitment to advancing sustainable agricultural solutions globally. By equipping Upgrowth Ag with the DGS-66 Production Systems, HydroGreen is enhancing their capability to boost productivity and provide superior, consistent livestock feed on a commercial scale. This partnership not only benefits local markets but also serves international needs, blending traditional farming practices with cutting-edge technology.
CubicFarms continues to focus on innovative solutions that promote sustainability in agriculture. The sale of HydroGreen’s DGS-66 systems to Upgrowth Ag marks a significant step towards transforming livestock feed production and supporting the global agricultural community.
CubicFarm Latest News
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HydroGreen Announces Landmark Partnership with Plainview Beef Company (2024/04/03)
CubicFarm® Systems Corp. has signed an exclusive Feed as a Service (FaaS) agreement with Plainview Beef Company to advance sustainable beef production. HydroGreen Inc., a subsidiary of CubicFarm, will construct and operate multiple commercial-scale feed centers. The initiative begins with setting up 2 DGS-66 production systems in Wray, Colorado, for an initial feed trial, followed by a larger scale operation involving 20 GLS-808 machines. This partnership aims to enhance the quality and taste of Plainview Beef’s premium grass-fed beef, aligning with the consumer shift towards health-conscious dietary choices. The collaboration is seen as a game-changer that will redefine the grass-fed beef market standards and emphasize the value of HydroGreen’s products.
Expands HydroGreen’s Global Footprint with Strategic Partnerships in Ireland and the Middle East (2024/03/26)
CubicFarm® Systems Corp. (TSXV: CUB) has announced a significant step forward in its international expansion efforts through its subsidiary, HydroGreen Inc. The company has signed an exclusivity agreement with Agrotopia Ireland Limited for the purchase of four additional HydroGreen Units, marking a pivotal moment for HydroGreen’s operations in Ireland and the Middle East. The partnership aims to offer eco-friendly, nutrient-rich feed solutions that have the potential to revolutionize farming practices, enhance livestock welfare, and mitigate environmental impacts.
HydroGreen Secures Strategic Partnership with BoomA Food Group in Australia (2024/03/21)
CubicFarm® Systems Corp (TSXV: CUB) has announced a partnership between its subsidiary, HydroGreen, and BoomA Food Group, a food producer in Australia. HydroGreen will supply BoomA with 10 HydroGreen machines and 66 units, which are expected to produce over 30 tonnes of feed daily. This partnership aims to promote sustainable food production and enhance dairy and beef production efficiency. The strategic alignment also allows HydroGreen to expand its international footprint while concentrating on FaaS in the domestic US market.
Settlement Marks a Positive Turn for HydroGreen Inc. (2024/03/18)
HydroGreen Inc. has reached a settlement with Burnett Land & Livestock, closing a lawsuit filed against them in Wyoming in 2023. The agreement has enabled HydroGreen to recover 12 commercial GLS 808 production units, alongside essential grain sizers, conveyor systems, grain bins, and other ancillary equipment. With this recovery, HydroGreen plans to establish itself as a leading producer of fresh sprouted grains in the United States.
CubicFarm® Systems Corp. Announces Share Consolidation (2024/01/18)
CubicFarm® Systems Corp. will consolidate its issued and outstanding common shares on the basis of one post-consolidation share for every ten pre-consolidation shares. The total number of common shares will be reduced from approximately 263 million to about 26 million. Shareholder approval is not required as this is a strategic step to streamline the share structure. The consolidation will adjust convertible securities and fractional shares. After the consolidation, the company will have new CUSIP and ISIN numbers. Shareholders with electronic holdings do not need to take any action. The consolidation is subject to approval from the TSX Venture Exchange and trading will begin on January 19, 2024.
HydroGreen’s Enters Irish Market (2024/01/04)
CubicFarm Systems Corp.’s HydroGreen has made a significant sale to an Irish agricultural company, marking its expansion in Ireland and potentially the UK. The sale aligns with the EU’s focus on innovative agricultural technology and Ireland’s commitment to sustainable food systems. The partnership also includes research and development trials with local agencies and universities. HydroGreen’s innovative approach to smart farming positions it as a key player in the future of agricultural technology.
CubicFarms’ Delisting From TSX (2023/12/18)
CubicFarm Systems Corp., a prominent local chain agricultural technology player, recently announced a significant change in its stock market listing. The company’s common shares and 8.00% unsecured convertible debentures, previously listed on the Toronto Stock Exchange (TSX), will be delisted after market close on December 18, 2023. This delisting is attributed to the company’s failure to meet the TSX’s continued listing requirements. After its delisting from TSX, CubicFarms will begin trading on the TSX Venture Exchange starting December 19, 2023. This move signifies a new chapter for the company in a different trading environment, potentially offering different opportunities and challenges.
CubicFarm Systems Corp Latest Financial Results (2023/11/15)
CubicFarm® Systems Corp. (TSX: CUB) reported a decrease in revenue for Q3 2023, recording $59,100, down from $325,480 in the same period last year. However, the company showed a significant reduction in net losses, which were $2.2 million for the quarter, a significant improvement from the $12.7 million loss in the previous year. The quarter was marked by significant operational progress, particularly in the Feed as a Service (FaaS) segment. CubicFarms announced a Memorandum of Terms with four new partners, expanding its reach in the dairy industry.
CubicFarms Announces Results of AGM of Shareholders 2023 (2023/10/05)
CubicFarm Systems Corp. announced the results of its Annual General and Special Meeting of shareholders. Four directors were elected by ballot, namely Janet Wood, Michael McCarthy, Daniel Burns, and George David Cole. An auditor was authorized by resolution with a high percentage of votes in favor. Shareholders also approved a resolution amending the Company’s Articles. CubicFarms continues to focus on its HydroGreen technology, which offers Automated Vertical Pastures™, producing high-performance feed ingredients for livestock throughout the year. The company is committed to developing and deploying technology to feed a changing world, providing an efficient, localized food supply solution that benefits people, the planet, and the economy.
CubicFarms and HydroGreen Expand into International Markets Through Partnership with Seehof Agrar GmBH (2023/08/26)
CubicFarm® Systems Corp.’s subsidiary HydroGreen Inc. has partnered with Seehof Agrar GmBH to promote and sell its livestock feed equipment in Europe, the Middle East, and select countries in the Asia Pacific. The partnership aims to expand internationally and target subsidized markets. This collaboration will make sustainable and efficient feed solutions more accessible worldwide, enhancing global food security, and reducing the environmental footprint of agricultural production.
HydroGreen Signs Deal with Bar None Dairy for Sprouted-Grain Feed Production (2023/08/21)
HydroGreen, a subsidiary of CubicFarm Systems Corp., has signed a deal with Bar None Dairy to provide 6 tons of sprouted-grain feed daily from its upcoming second phase facility in Riverdale, California. The facility will house 10 HydroGreen machines with a production capacity of up to 34 tons of feed each day. This collaboration paves the way for potential sales expansion to other nearby dairy and beef enterprises. The Feed as a Service (FaaS) business framework, a groundbreaking approach in agriculture, ensures peak feed production, stringent quality control, and superior animal performance outcomes for producers.
CubicFarm Q2 2023: Thriving Progress (2023/08/16)
CubicFarm Systems Corp. reported impressive Q2 2023 financial and operational results, with revenue growth, cost reduction measures, and a focus on sustainable farming practices. The company’s introduction of “Feed as a Service” through its subsidiary, HydroGreen, and successful installations of HydroGreen units for livestock feed market players exemplify its commitment to innovation and expansion in the agricultural technology landscape. The recent appointment of Michael Brendan Kyne as Interim CFO highlights the company’s focus on maintaining financial stewardship and guiding sustainable growth.
CubicFarm Systems Corp Announces Extension for Annual General Meeting Dates (2023/08/02)
CubicFarm® Systems Corp. (TSX: CUB) has announced an extension for its Annual General Meeting (AGM) for the year ending December 31, 2022. The Toronto Stock Exchange has granted a three-month extension to hold the AGM from June 30, 2023, to September 30, 2023, and the Registrar of Companies has granted a similar extension from September 16, 2023, to December 16, 2023, under section 182(4) of the Business Corporations Act. The decision to postpone the AGM was determined by the Company’s management to be in the best interest of its shareholders, allowing time to consider potential transactions requiring security holder approval or potential consolidation of share capital.
CubicFarms’ HydroGreen Scores Strategic Agreement with Johann Dairy, Expands FaaS Model in California (2023/07/23)
CubicFarms’ subsidiary, HydroGreen, has partnered with Johann Dairy in California. HydroGreen plans to set up a facility at the Wilson Dairy in Riverdale equipped with 10 HydroGreen machines, potentially producing approximately 34 tons of feed daily. As per the terms of the collaboration, HydroGreen will deliver 10 tons of their specially designed “As Fed” Feed daily. This move acts as a testament to HydroGreen’s product credibility and holds potential for further expansion of sales to other dairy and beef operations in the area.
CubicFarms’ HydroGreen and Crosswind Jerseys Embark on Innovative Feed Partnership (2023/07/07)
HydroGreen Inc. and Crosswind Jerseys have partnered up for Feed as Service deliveries. HydroGreen will deliver 45 tons of feed per month from its Sioux Falls production facilities starting July 7, 2023. Crosswind Jerseys recognized the potential of HydroGreen’s feed to enhance the performance of its 2,100-strong dairy cow herd. Trials have shown considerable improvements, including a 12% boost in rumination activity and dry matter intake, a 5% rise in milk production, and an 8% increment in conception rates.
CubicFarms Reports Its Q1 2023 (2023/05/16)
CubicFarms reported increased revenue for Q1 2023 but also posted net losses of $4.7 million. The reduction in net losses is attributed to cost-cutting measures, which decreased operating expenses. Key highlights include partnerships with Langley Indoor Produce Ltd. and Jim Cheney Inc. and the completion of an overnight marketed public offering. The interim CFO expressed satisfaction with the results and reiterated the Company’s commitment to delivering value to shareholders and pursuing sustainable growth in the agricultural sector.
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CubicFarm Systems Corp released its financial results for the year ended December 31, 2022 (2023/05/03)
CubicFarm Systems Corp reported a drop in revenue for Q4 2022, with $0.2 million compared to $0.8 million in the previous year, and annual revenue of $3.6 million compared to $5.3 million in the prior year. The net loss for Q4 2022 widened significantly to $29.8 million, up from $11.2 million during the same period in 2021, and the net loss for the full year was $60.4 million compared to $29.4 million in the prior year. However, the company is optimistic about its cost reduction plan, which is projected to yield annual savings of $15.6 million in cash-based operating expenses. Despite the challenges faced in 2022, CubicFarm Systems Corp is determined to return to financial stability by continuing to implement its cost reduction strategy while reassessing its asset values and working towards enhancing machine sales.
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Second Quarter 2022: Restructuring Process (2022/08/15)
CubicFarms focused on project execution and building a sales pipeline in Q2 2022. HydroGreen is nearing completion of its installation of AVPs at Burnett’s Land & Livestock. The company showcased its HydroGreen Innovation Center R&D facility to 400 National Holstein Convention conference attendees. Despite a net loss, the company has announced cost reduction measures, including workforce reduction and a centralized procurement structure. These measures will positively impact the company’s financial performance in Q3 2022.
Read the complete financial results here.
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