Only this week it was announced that Canadian company Aright Greentech Canada will invest in the growth systems of CubicFarms. Now they can pop another bottle of champagne: also the team with Vertical Acres Farm has selected their automated, controlled-environment growing technology. The Indiana-based produce company will grow commercial quantities of fresh produce for the region.
The agreement with Vertical Acres is for the sale of 21 CubicFarms machines, including 17 cultivators, three propagators, and one fertigator, for a complete CubicFarm installation. The agreement, which includes a deposit received from Vertical Acres, represents approximately C$3.8 million in anticipated revenue to the Company. The technology is expected to be installed in Indiana in the first half of 2021.
"The patented CubicFarms technology will enable Vertical Acres to grow high-quality foods, with predictable crop yields indoors, all year round," CubicFarms CEO Dave Dinesen, commented. "We are looking forward to our partnership with Vertical Acres to help them successfully grow high-quality, great tasting, local produce in Indiana, and for the neighbouring regions. Our patented technology should enable them to maximize their production per cubic foot, while greatly reducing the physical footprint of their traditional farming operations."
Vertical Acres owner Fred Schakel, said: "We evaluated a large number of indoor growing systems and chose CubicFarms as the optimal commercial-scale fresh produce system solution. We love the idea of the perfect growing environment, the fraction of water it takes to grow our greens, and the freedom from contaminants that the Cubic system affords. We are excited that we will be able to supply our local community with fresh, perfect greens every day of the year without the influence of bad weather always weighing on our production model. With CubicFarms' excellent technology, we are truly looking forward to this partnership."
CubicFarms also announced that pursuant to a non-brokered private placement, the owners of Vertical Acres have agreed to purchase 225,500 common shares of the Company at a purchase price of C$0.78 per common share for gross proceeds of C$175,500.
CubicFarms intends to use the proceeds of the Offering for general working capital purposes. Closing of the Offering is subject to approval of the TSX Venture Exchange.
Mr. Schakel commented, "After performing significant due diligence on the Company's technology, we are excited to further demonstrate our conviction in CubicFarms through this investment in its business."