Vancouver, British Columbia--(Newsfile Corp. - March 15, 2024) - CubicFarm® Systems Corp. (TSXV: CUB) ("CubicFarms" or the "Company"), a leading agricultural technology company, announced that its ruminant livestock feed subsidiary company, HydroGreen Inc. ("HydroGreen"), has reached a negotiated settlement with "Burnett Land & Livestock, Ltd., LLLP" concerning a lawsuit that "Burnett Land & Livestock, Ltd., LLLP" had filed against HydroGreen Inc and CubicFarm Systems Corporation in the State of Wyoming in 2023. The resolution brings an end to a dispute that had raised questions as to the impact on HydroGreen and its parent company CubicFarm Systems Corporation.
The resolution allows HydroGreen Inc to recover 12 commercial GLS 808 production units along with grain sizers, conveyor systems, grain bins, and a host of additional ancillary equipment directly involved in the installation of a HydroGreen feed center. HydroGreen agreed to settle with Burnett Land & Livestock, Ltd., LLLP for the investment made in the physical facility construction.
"This successful resolution of the dispute between "HydroGreen Inc" and "Burnett Land & Livestock, Ltd., LLLP" creates immediate value for HydroGreen by increasing the company's Inventory of commercial GLS 808 units to 18 along with all the ancillary equipment. This brings the commercial value of HydroGreens inventory to over 9.4 million Canadian dollars based on MSRP 2024 pricing," said HydroGreen CFO, Michael Kyne.
This settlement lays the groundwork for HydroGreen to direct this significant inventory of 18 GLS 808 units to the planned initial Feed as a Service (FaaS) installation in Visalia, California. "Having such an immediate substantial inventory gives us a significant head start in our planning for the deployment of 40 GLS 808 systems needed to build the first feed center in Visalia, California," says HydroGreen CFO, Michael Kyne.
"HydroGreen is in an excellent position to become the leading fresh sprouted grain producer in the US with its list of identified feed opportunities in Central California, Oklahoma, Kansas, and Arizona to name a few. The company has communicated this strategy to investors over the last 6 months regarding the opportunity to build and operate regional feed hubs in areas of high concentration of beef and dairy cattle thus benefitting the company and its shareholders from the development of a highly predictable recurring revenue business," said CubicFarms chairman, Daniel Burns.
Forward-looking and other cautionary statements 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 and the Company's ability to build the first feed center in Visalia, California. 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 labour. 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.
