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CubicFarms Announces $4.4M CubicFarm System Sale and North American Manufacturing Agreement

a leading local chain agricultural technology company, today announced that it has entered into agreements with NTE Discovery Park Ltd. ("NTE Discovery Park") for the purchase of 26 CubicFarm System modules at a sale price of CAD$4.4 million, the manufacturing of those initial 26 modules, as well as the future manufacturing of major components for contracts within North America. 

At Discovery Park, a former pulp mill located in Campbell River, British Columbia ("B.C."), NTE Discovery Park will operate the manufacturing and fabrication of the cold-formed steel framing for modular construction of the CubicFarm System modules. The CubicFarm System controlled environment agriculture ("CEA") technology grows commercial scale amounts of fresh produce in modular, food-grade steel systems using the Company's proprietary Crop Motion Technology™ moving plants throughout the system using less water, land, energy, and labour. 

CubicFarms has signed an agreement with NTE Discovery Park to purchase an initial 26 CubicFarm System indoor growing modules, which will be installed at Discovery Park in Campbell River, B.C., with the intention to expand with the sale and manufacturing of an additional 100 modules in the near future. NTE Discovery Park is committed to repurposing existing facilities and evaluating sustainable initiatives to ignite a circular economy, localize food production, and reinvigorate local labour with jobs in the community. 

"We're excited about operating the CubicFarm System and diversifying our operations by manufacturing major hardware components, installing CubicFarms' impressive indoor farming technologies, and localizing fresh produce for communities in B.C.," said John Tang, Chief Executive Officer, NTE Discovery Park. "Building and operating vertical farms in Western Canada has a dual purpose of providing communities with better access to delicious fresh food year-round without importing 90% of it over long distances, thereby reducing the carbon footprint of food delivered to consumers. We are also providing new jobs with the ongoing manufacturing of CubicFarm System modules for installation across Canada and North America. We were impressed by the CubicFarm System's lower energy usage compared to other vertical farms, and we're proud to use power sourced BC Hydro with a hydroelectric dam located 4 kilometres from the site." 

As the Company's North American manufacturing partner, NTE Discovery Park will be manufacturing major hardware components for CubicFarms. Supply chain delays have impacted the Company's delivery and installation of CubicFarm System modules during the ongoing global pandemic. This new manufacturing agreement with NTE Discovery Park will mitigate supply chain constraints and allow increased efficiencies and new Farmer Partner installations for larger commercial scale commitments. 

"We're honoured to partner with NTE Discovery Park and parent company New Times Energy Limited in manufacturing CubicFarm Systems," said Dave Dinesen, Chief Executive Officer, CubicFarms. "The visionary leaders of this successful, international company are aligned on the importance of all the ways we can localize food production and improve food security in Canada. This manufacturing agreement for hardware made in Canada is in addition to the Company's existing manufacturing facilities in China, allowing CubicFarms to meet increasing demand for our technology and leading CEA platform."   

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