Mr. Dave Dinesen reports
CUBICFARM SYSTEMS CORP. ANNOUNCES COMPLETION OF $5 MILLION PRIVATE PLACEMENT WITH OSPRAIE AG SCIENCE
Cubicfarm Systems Corp., further to its press release dated May 1, 2020, has completed the non-brokered private placement with Ospraie Ag Science LLC, involving the issuance of 21,739,130 common shares of Cubicfarm at a price of 23 cents per share for gross proceeds of approximately $5.0-million. Ospraie now holds an approximately 18.8-per-cent interest in the company on a non-diluted basis (see the early warning disclosure below).
"We are very excited to complete this transaction with Ospraie, all the more so amid the current economic and travel challenges," said Cubicfarm's chief executive officer, Dave Dinesen.
"Ospraie's strategic investment will allow Cubicfarm to execute on our vision of providing technology to feed a changing world, by driving our R&D [research and development] efforts to further optimize our machine yields, automation and functionality, as well as expand the crop varieties that can be grown in our machines -- all with a view of capturing more market share and adding value to our grower-customers.
"We look forward to working closely with Ospraie as they add incredible value to Cubicfarm through their industry expertise, and exploring potential technological and commercial synergies with the other ag-tech companies in their portfolio and network."
The shares issued in connection with the offering are subject to a statutory four-month hold period.
Early warning disclosure
Prior to the offering, Ospraie held 99,500 common shares of the company, representing approximately 0.1 per cent of the then current issued and outstanding common shares on a non-diluted basis. After giving effect to the offering, Ospraie holds 21,838,630 common shares, representing approximately 18.8 per cent of the issued and outstanding common shares on a non-diluted basis.
The company has been advised by Ospraie that the common shares were acquired under the offering by Ospraie for investment purposes and that Ospraie reviews its holdings in the company from time to time and may, based on such review, market conditions and other conditions, and subject to compliance with applicable hold periods, increase or decrease its ownership of common shares or other securities of the company or related financial instruments, whether in the open market, by privately negotiated transaction or otherwise.
A copy of Ospraie's early warning report will appear with the company's documents on SEDAR and may also be obtained by contacting Scott Baglio at 212-602-5090.
About Cubicfarm Systems Corp.
Cubicfarm is a technology company that is developing and deploying technology to feed a changing world. Its proprietary technologies enable growers around the world to produce high-quality, predictable crop yields. Cubicfarm has two distinct technologies that address two distinct markets. The first technology is its patented Cubicfarm system, which contains patented technology for growing leafy greens and other crops. The second technology is Cubicfarm's HydroGreen system for growing nutritious livestock feed.
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