Mr. Dave Dinesen reports
CUBICFARM SYSTEMS ANNOUNCES ITS LARGEST SALE TO DATE - A 100-MACHINE COMMERCIAL-SCALE VERTICAL-FARMING SYSTEM IN SURREY, BC
Cubicfarm Systems Corp. has finalized an agreement for the sale of 100 Cubicfarm growing machines and received a deposit in the amount of $1.2-million from a commercial grower and agricultural product wholesaler based in the province of British Columbia, Canada. The customer had previously provided a deposit for a 12-machine system and now has applied its deposit toward this revised order for 100 machines.
The 100-machine system represents a total of $16.5-million in sales revenues to the company and is expected to be installed in two phases in Surrey, B.C. The first phase, consisting of the installation of 26 growing machines and an irrigation system, is planned for installation this year, with the remaining machines planned for installation by mid-2022.
The company has a current backlog at $24.7-million, representing 144 machines under deposit and awaiting installation -- demonstrating continued sales momentum due in part to growing demand for its systems. The current backlog is anticipated to be recognized in revenue in mid-2020 to mid-2022.
The sale represents Cubicfarm's largest to date, following on its 21-machine sale to a customer in Montana, United States -- its largest sale in the United States -- and its 23-machine sale to a customer in Calgary, Canada.
Due to the close proximity of the customer's Surrey site to Cubicfarm's headquarters, Cubicfarm will provide a turnkey solution to the customer, by facilitating and managing site preparation and installation of the Cubicfarm system -- leveraging the experience the company has gained from its research and development and production facility in Pitt Meadows, B.C.
Cubicfarm chief executive officer Dave Dinesen commented: "We are extremely encouraged by the growth in sales we've enjoyed and the trend toward increasingly larger facilities. It reflects the demand emerging around the world for commercial-scale growing technology. Once installed, the system in Surrey will be one of the world's largest automated vertical farming systems.
"We are excited to be working with our customer, an established multiindustry group with investments and operations in the agriculture, technology and health space. Our customer understands the importance of using technology to significantly improve yields in an environmentally sustainable manner and we look forward to helping them scale up production of fresh local vegetables for their market in southwest British Columbia and beyond.
"We are also pleased to receive ongoing feedback from our existing machine customers about the quality of produce from our systems and resulting growth in demand for that produce."
Concurrent with the 100-machine sale, Cubicfarm has entered into a shareholder agreement with the customer and its associated companies with respect to a joint venture entity that will own and operate the 100-machine venture. As consideration for Cubicfarm's 20-per-cent ownership in the joint venture, the company will provide approximately $342,000 in the form of a zero-interest loan.
About Cubicfarm Systems Corp.
Cubicfarm Systems is a technology company that is developing and deploying technology to feed a changing world. Its proprietary technologies enable farmers around the world to grow high-quality, predictable crop yields.
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