Vancouver, British Columbia--(Newsfile Corp. - March 6, 2025) - CubicFarm® Systems Corp. (TSXV: CUB) (OTC Pink: CUBXF) ("CubicFarms" or the "Company"), a leading agricultural technology innovator, is pleased to announce the completion and full commissioning of its HydroGreen GLS 808 machine, as part of its previously announced sale to Redmond Heritage Farms in Redmond, Utah. This marks the fourth successfully commissioned project in the last two quarters, highlighting the growing demand for natural, sustainable livestock feed solutions.
The sale, valued at USD $340,308 (CAD $493,000), aligns with the Company's mission to support healthier, more sustainable food production. Redmond Heritage Farms is a fully integrated, large-scale pioneer in the direct-to-consumer production of raw, unprocessed dairy products, prioritizing animal health and nutrition as key drivers of milk quality.
Originally announced on October 31, 2023, the Redmond Heritage Farms installation is now fully operational, enabling the farm to grow fresh, nutrient-rich feed year-round for its pasture-raised dairy cattle.
"The completion of this project is another step forward in our commitment to supporting regenerative agriculture and healthier livestock nutrition," said Michael Kyne, CFO, HydroGreen. "We are seeing a clear trend where farms and food producers are prioritizing grass-fed, natural livestock diets to meet consumer demand for cleaner, more nutrient-dense food products. Our expanding customer base reflects this shift, as more farms recognize the value of growing fresh, chemical-free feed on-site to improve animal health and product quality."
Revenue Recognition & Financial Impact
CubicFarms follows a conservative revenue recognition policy, only recognizing revenue once projects are fully commissioned and operational.
"In accordance with our conservative accounting policy, the revenue from the Redmond Heritage Farms project will be recognized in Q1 2025, now that the project is complete," said Michael Kyne, CFO of HydroGreen. "Similarly, revenue from the three previously announced commissioned projects in late 2024 will be recognized in Q4 2024. This ensures transparency in our financial reporting and reflects our commitment to recognizing revenue only when projects are fully delivered and operational."
The Growing Market for Grass-Fed, Healthier Livestock Products
The completion of this project comes at a time of significant growth in the grass-fed beef and dairy markets. The grass-fed beef market alone is projected to reach USD $13.3 billion in 2025, growing at a CAGR of 4.4%. Consumer demand for antibiotic-free, naturally raised livestock is at an all-time high, driven by increasing awareness of the health risks associated with conventional feed additives and hormones.
Redmond Heritage Farms is at the forefront of this movement, ensuring that its cows are pasture-fed and supplemented with fresh, roughage-based diets during winter months-free from hormones, antibiotics, and chemical additives. This aligns with HydroGreen's mission to provide innovative indoor growing solutions that empower farmers to grow fresh, high-quality feed on-site, year-round, reducing reliance on imported feed and improving farm sustainability.
"Redmond Heritage Farms is proud to be a productive member of the Utah agricultural community, dedicated to natural and sustainable farming practices that support our local economy," said Zairen Brady, Farm Manager, Redmond Heritage Farms. "We are investing in controlled environment agriculture to create more self-sufficient farming in Central Utah, optimizing our livestock's nutrition, using less water, and reducing our farm's environmental impact.
With the installation of a HydroGreen GLS 808 fodder machine, we expect to produce half of our farm's daily feed using about 95% less water than traditional farming techniques. The water is recycled and reused, benefiting both our livestock and crops. We are excited about the opportunities this investment brings and optimistic about the future of farming, especially with the integration of more sustainable technologies."
A Strong Foundation for Growth
The successful commissioning of Redmond Heritage Farms follows CubicFarms' previously announced projects, including installations at Plainview and other leading natural dairy and beef operations. With increasing regulatory focus on livestock nutrition and a growing consumer shift towards natural, traceable food sources, HydroGreen remains well-positioned to expand its footprint in the sustainable agriculture sector.
For more information please contact:
Michael B. Kyne, CFA Chief Financial Officer & Chief Investment Officer CubicFarm Systems Corp. and HydroGreen Inc. Phone: 236-305-6091 Email: Michael.Kyne@cubicFarms.com
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 estimated harvesting capabilities of the machines, nutritional benefits of feed produced by the machines and quality of the feed in general. Such statements involve known and unknown risks, uncertainties, and other factors which may cause the actual results, performance, or achievements to be materially different from any future results, performance, or achievements expressed or implied by such forward-looking statements. Such statements can be identified by the use of words such as "intend", "expect", "believe", "plan", "anticipate", "estimate", "scheduled", "forecast", "predict", and other similar terminology, or state that certain actions, events, or results "may", "can", "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.
About HydroGreen
HydroGreen produces Automated Vertical Pastures™, a type of smart farming equipment that uses a unique process to sprout grains such as wheat and barley, in a controlled growing environment to efficiently produce a high-performance feed ingredient for livestock 365 days a year. HydroGreen's equipment is simple and easy to operate and performs all growing functions automatically, including seeding, watering, lighting, harvesting, and re-seeding, which allows livestock businesses to feed consistent nutrition every day with minimal labor. When balanced correctly in the ration, HydroGreen sprouted grain modifies animal digestion which enhances productivity and reduces the amount of enteric methane emitted in ruminant livestock. The result also enables environmental benefits to the farm while helping to meet increasing demand for valuable farm-based inset and offset carbon credits. For more information, please visit www.hydrogreenglobal.com.
About CubicFarms
CubicFarms is a leading local chain agricultural technology company developing and deploying technology to feed a changing world. Its proprietary ag-tech solutions enable growers to produce high quality, predictable produce and fresh livestock feed with HydroGreen Nutrition Technology, a subsidiary of CubicFarm Systems Corp. The CubicFarms™ system contains patented technology for growing leafy greens and other crops on-site, indoors, all year round. CubicFarms provides an efficient, localized food supply solution that benefits our people, planet, and economy. For more information, please visit www.cubicfarms.com.
About Redmond Heritage Farms
Redmond Heritage Farms is dedicated to providing real, natural farm products for health-conscious consumers. The farm is a leading producer of raw milk in Utah, testing milk nutrition quarterly to ensure optimal quality and sustainability. Its cows are pasture-fed, free from hormones and chemical additives, and raised with a focus on animal welfare and nutrient-rich production methods. In addition to dairy, Redmond Heritage Farms offers pasture-fed beef, pork, and raw cheese, aligning with the growing consumer demand for clean, minimally processed foods. For more information, please visit www.redmondfarms.com.
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