CubicFarm Systems announces its animal feed division, HydroGreen, is entering into a wholesale program and support agreement with DLL Finance to provide floor plan financing for the sales of Automated Vertical Pastures to HydroGreen's dealership network. DLL is a division of Rabobank Group, a European-based international financial services provider specializing in the food and agriculture industries.
The Program provides interest-free financing for all products sold by HydroGreen to its dealers for up to 180 days, subject to DLL's credit approval. Upon issuance of the sales invoice and DLL's approval of the required dealer documentation, HydroGreen will receive the proceeds of sales directly from DLL, net of an initial charge rate which is benchmarked with the 1-month Term Secured Overnight Financing Rate. Dealers qualified under the Program will be subject to certain curtailment schedules and ancillary fees customary to the financing, as well as interest rates based on SOFR, plus a margin in the event of a term extension beyond 180 days.
"We are very excited to partner with DLL and launch an effective wholesale financing solution that will help facilitate HydroGreen's sales growth, accelerate our cash collection cycle, and enhance financial flexibility for our network of dealers," said John de Jonge, Interim CEO of CubicFarms and President of HydroGreen. "We believe the Program will significantly strengthen our global sales strategy as we continue our market penetration into the dairy and beef industry with our technology to improve feed nutrition, efficiency, and animal health."
The company also announces that Leo Benne, Head of Innovation, and member of the Board of Directors, has resigned from his roles at CubicFarms. "Mr. Benne played a key role in developing CubicFarms' technology along with his father Jack Benne, and has offered his strategic vision and knowledge in applying technology to grow high yields of healthy plants. The Board is grateful for his commitment and expertise," said Dan Burns, Chair of the Board of Directors. Leo Benne added, "I thank all the talented leaders and management at CubicFarms for what we have built and accomplished together, the future of ag-tech is bright, and I look forward to watching the company's next steps towards growth in this exciting sector."