Mr. Dave Dinesen reports
CUBICFARM SYSTEMS CORP. ANNOUNCES EXECUTION OF LETTER OF OFFER WITH BDC FOR C$5 MILLION IN FINANCING
Cubicfarm Systems Corp. has entered into a letter of offer of financing with BDC Capital Inc., a wholly owned subsidiary of Business Development Bank of Canada.
BDC's clean tech practice has agreed to provide Cubicfarm with growth capital in the amount of $5-million through a commercial debt financing. The loan will bear interest at an annual fixed rate of 10 per cent, which will be decreased as the company meets performance targets set by BDC. The secured loan is payable by June, 2025.
Cubicfarm chief executive officer Dave Dinesen commented: "I would like to recognize BDC and its commitment to helping high-growth technology companies in Canada to thrive. Cubicfarms fits within the BDC's clean tech practice's mandate of investing in companies with commercially validated IP-protected [intellectual property] technologies that positively impact the environment as well as companies demonstrating proven market traction with significant potential for revenue growth and commercial contracts. This non-dilutive financing from BDC -- combined with our recent raises with Ospraie Ag Science and dairy entrepreneur Harry DeWit -- will significantly boost Cubicfarm's cash reserves and position us well to strategically scale the business."
BDC's clean tech practice director, Karim Kennedy, commented: "BDC is proud to support one of Canada's leaders in controlled-environment agriculture in its mission to provide the world with sustainably produced food through cutting-edge machine and crop technologies. Cubicfarms helps to solve many problems plaguing traditional agriculture, namely weather inconsistencies and the declining availability of arable land, water [and] labour. Controlled, indoor growing is poised to become a mainstream method of farming as farmers discover its high-crop-quality, high-yield benefits while minimizing environmental impacts through a vast reduction of farm water usage and emissions from localizing food production."
Cubicfarm closes $1.16-million private placement with leading dairy entrepreneur Harry DeWit and company insiders
Further to its press release dated July 15, 2020, the company has completed the non-brokered private placement with Mr. 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 $1,161,720. Insiders who participated in the offering include Jeff Booth, chairman; Rodrigo Santana, chief operating officer; and Tim Fernback, chief financial officer.
"Cubicfarms is so fortunate to have such outstanding support from some of the best farming industry leaders and our own colleagues. Great customers and a great team can together achieve truly great things. Thank you Harry, Jeff, Rodrigo and Tim!" said Mr. Dinesen.
The net proceeds from the loan and offering are expected to be used for research and development to expand machine capabilities and crop varieties as well as for working capital.
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 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 leverages its patented technology by operating its own research and development facility in Pitt Meadows, B.C., selling the system to growers, licensing its technology and providing vertical farming expertise to its customers.
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