License Agreement with Zenabis to Expand Sales of CubicFarms Systems in New Vertical
VANCOUVER, BC / ACCESSWIRE / October 28, 2019 / CubicFarm® Systems Corp. (TSXV:CUB) ("CubicFarms" or the "Company") is pleased to announce that ZenCube, its vertical-farming machine for growing hemp and cannabis, is fully operational at a showcase and R&D facility in Langley, Canada.
The ZenCube project leverages CubicFarms' patented, undulating-path growing technology to allow hemp and cannabis growers to cultivate significant amounts of product in a smaller footprint by doing so in a completely climate-controlled environment. The ZenCube helps to address challenges faced by traditional growing methods, by providing a solution that requires less space, labour, water and energy, and is expected to result in a more consistent, higher quality product for farmers and end-users alike.
CubicFarms has developed a pipeline of sales opportunities for its ZenCube-branded growing machines that is expected to be augmented by an exclusive License Agreement signed with Zenabis Ltd. ("Zenabis"), a subsidiary of Zenabis Global, a leading Canadian licensed cannabis cultivator of medical and recreational cannabis, and propagator and cultivator of floral and vegetable products. Under terms of the agreement, Zenabis shall fulfill a minimum sales threshold of 150 ZenCube machines by year 2024 to maintain its exclusive license to operate, sell and sublicense ZenCube machines globally.
The License Agreement supersedes the Joint Venture Agreement between CubicFarms and Zenabis, announced in a Bevo Agro press release dated October 9, 2018. Bevo Agro now is Zenabis Global.
CubicFarms and Zenabis are conducting ongoing R&D on crop growth and quality at the Zenabis-owned-and-licensed Langley facility.
Dave Dinesen, Chief Executive Officer of CubicFarms, commented: "CubicFarms is excited to bring online its first growing machine for the purposes of facilitating yet another vertical in the hemp and cannabis space, and to help farmers grow more produce reliably, 12 months a year, wherever they are on earth. CubicFarms has received numerous enquiries to utilize our technology in this space and we are thrilled to serve this market, in addition to our other verticals, namely fresh produce, animal feed and nutraceuticals."
Leo Benne, Chief Growing Officer of Zenabis, added: "The Zenabis and CubicFarms partnership on the ZenCube project is a culmination of our joint vision of bringing a robust and reliable solution to the global hemp and cannabis market, to ensure we meet consistency and quality in our crop yields."
Neither the TSX Venture Exchange nor its Regulation Services Provider (as that term is defined in the policies of the TSX Venture Exchange) accepts responsibility for the adequacy or accuracy of this release.
About CubicFarm® Systems Corp.
CubicFarm® Systems Corp. ("CubicFarms") is an ag-tech company commercializing large scale, vertical farming solutions for global industrial markets. Founded in 2015, the Company's mission is to provide industries around the world with efficient growing systems capable of producing predictable crop yields. CubicFarms offers turnkey, commercial scale, hydroponic, automated vertical farm growing systems that can grow predictably and sustainably for 12 months of the year virtually anywhere on earth. CubicFarms enables its customers in the fresh produce, animal feed, nutraceutical, and hemp/cannabis industries to grow locally and to provide their markets with safe, sustainable, secure and fresh ingredients that are consistent in colour, size, taste, nutrition and allows for a longer shelf life. Further support and value is provided to customers through the Company's patent-pending germination technology and proprietary auto harvesting and processing methods.
Using its unique, undulating growing system, the Company addresses the main challenges within the indoor farming industry by significantly reducing the need for physical labour and energy, and maximizing yield per cubic foot. The Company has sold and installed systems in Canada and the US, and is currently negotiating with a global pipeline of prospective customers. It also operates one wholly owned facility in Pitt Meadows, British Columbia, and sells its produce in the province to retail and wholesale customers under the brand name Thriiv Local Garden™.
Cautionary statement on forward-looking information
Certain statements in this release constitute "forward-looking statements" or "forward-looking information" within the meaning of applicable securities laws, including, without limitation, statements with respect to the ZenCube is expected to result in a more consistent, higher quality product for farmers and end-users alike; and CubicFarms' sales pipeline is expected to be augmented by the License Agreement. Such statements involve known and unknown risks, uncertainties, and other factors which may cause the actual results, performance, or achievements of CubicFarm Systems Corp., or industry results, to be materially different from any future results, performance, or achievements expressed or implied by such forward-looking statements or information. Such statements can be identified by the use of words such as "may", "would", "could", "will", "intend", "expect", "believe", "plan", "anticipate", "estimate", "scheduled", "forecast", "predict", and other similar terminology, or state that certain actions, events, or results "may", "could", "would", "might", or "will" be taken, occur, or be achieved.
These statements reflect the company's current expectations regarding future events, performance, and results and speak only as of the date of this news release. Consequently, there can be no assurances that such statements will prove to be accurate and actual results and future events could differ materially from those anticipated in such statements. Except as required by securities disclosure laws and regulations applicable to the company, the company undertakes no obligation to update these forward-looking statements if the company's expectations regarding future events, performance, or results change.
SOURCE: CubicFarm Systems Corp