CubicFarm Systems announces global Reseller Agreement with Groviv with minimum sales threshold of 200 machines
Wednesday, November 6, 2019 7:30 AM
New partnership significantly expands CubicFarms' machine sales pipeline into strategic international markets
VANCOUVER, BC / ACCESSWIRE / November 6, 2019 / CubicFarm® Systems Corp. (TSXV:CUB) ("CubicFarms" or the "Company") is pleased to announce that it has entered into a global Reseller Agreement (the "Agreement") with Groviv, a leader in the science and technology of controlled-environment agriculture (CEA). Groviv, a division of Nu Skin Enterprises - a minority investor in CubicFarms - will lead global sales for CubicFarms and has appointed Joe Huston, its Vice President of Business Development to direct the effort. Mr. Huston has extensive retail sales and distribution experience, working with brands such as Walmart, Kroger and Costco.
The authorized Reseller Agreement, while global in nature, will be focused initially on the sales of vegetable-growing machines in key territories such as China, the Middle East and other strategic areas. The Agreement complements CubicFarms' own sales and marketing efforts for its machines. CubicFarms is also focused on growing machine sales in its other verticals - animal feed, hemp/cannabis and nutraceutical ingredients - through its own sales pipeline or in partnership with other resellers.
In January 2019, CubicFarms signed a binding term sheet with Nu Skin to work together in the long term to market and sell CubicFarms systems in China. This Reseller Agreement expands upon CubicFarms' relationship with Nu Skin to allow its Groviv division to act as an exclusive, authorized reseller globally, with the provision that Groviv fulfills a minimum semi-annual sales threshold of 60 and 140 CubicFarms growing machines by June 30, 2020 and December 31, 2020, respectively.
"The expansion of the China binding term sheet to this global Reseller Agreement is a testament to Nu Skin and Groviv's confidence in CubicFarms' patented technology. We are excited to work with Joe and his team to bring the best automated vertical farming technology to China, the Middle East and other strategic areas where population growth, water, soil and farmland challenges present a huge need for high-value leafy vegetables, herbs and other crops," said Dave Dinesen, Chief Executive Officer of CubicFarms.
"Joe and the rest of the Groviv team have already established relationships with key growers, customers and partners worldwide, resulting in a significant sales pipeline. Joe's leadership experience in building businesses and driving revenue, coupled with his deep experience operating in China, are an enormous boon to our partnership."
Steve Lindsley, President of Groviv, stated: "We are excited to combine both our sales and marketing expertise with CubicFarms. Together we have the science, technology and experience to provide sustainable solutions that will grow safe, clean and nutritious fresh produce around the world."
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 Groviv, a division of Nu Skin Enterprises - a minority investor in CubicFarms - will lead global sales for CubicFarms; and the authorized Reseller Agreement, while global in nature, will be focused initially on the sales of vegetable-growing machines in key territories such as China, the Middle East and other strategic areas. 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