Ms. Kimberly Lim reports
CUBICFARMS ATTRACTS $1.16 MILLION INVESTMENT FROM LEADING DAIRY ENTREPRENEUR HARRY DEWIT AND COMPANY INSIDERS
Cubicfarm Systems Corp. has arranged a non-brokered private placement with Harry DeWit and company insiders, involving the issuance of 1,659,600 common shares of Cubicfarm at a price of 70 cents per share for gross proceeds of up to $1,161,720. Insiders participating in the offering include Jeff Booth, chairman, Rodrigo Santana, chief operating officer, and Tim Fernback, chief financial officer.
Mr. DeWit is chief executive officer and president of Blue Sky Farms, a Texas-based and Ohio-based dairy and farming business producing 1.2 million pounds of quality milk per day. He has been lauded as a forward-thinking dairy entrepreneur, having been awarded the International Dairy Foods Association's Innovative Dairy Farmer of the Year, which recognizes the valuable contributions of progressive dairy producers. His soil conservation efforts were recognized by the United States Department of Agriculture's (USDA) national resources conservation service.
Mr. DeWit commented: "Sustainability, efficiency and automation have always been at the core of my business endeavours. I have looked to technology to conserve water, reduce labour and generally improve the efficiency of my dairy operations. When Cubicfarm's board member, John de Jonge, introduced me to Cubicfarm's HydroGreen system that automates the growing of livestock feed, I had to learn more about the company.
"Cubicfarm's HydroGreen technology enables a more sustainable farming operation in that one system displaces 30 acres of land used for livestock forage production, not to mention the cost savings in labour, water, energy and fertilizers. Providing fresh HydroGreen feed on a daily basis to a herd of cows should bring the herd to a higher production level with health benefits."
Cubicfarm chief executive officer Dave Dinesen commented: "Top tier ag-tech investor Ospraie Ag Science has added tremendous value to Cubicfarms from day 1 of becoming a strategic investor just two months ago. We have benefitted from Ospraie's vast network, sector expertise and vision in our company-building efforts. We are now pleased to welcome Harry to the roster of company supporters. An investment from an industry stalwart such as Harry is a big vote of confidence in Cubicfarms and our HydroGreen livestock feed division."
The net proceeds from the offering are expected to be used for research and development to expand machine capabilities and crop varieties and working capital.
The offering is scheduled to close on or about July 28, 2020, and is subject to certain conditions, including, but not limited to, the execution of definitive documentation and receipt of all necessary approvals, including the approval of the TSX Venture Exchange. All securities issued pursuant to the offering will be subject to a hold period under applicable securities laws, which will expire four months plus one day from the closing date of the offering.
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 growers around the world to produce high-quality, predictable crop yields. Cubicfarm has two distinct technologies that address two distinct markets.
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