CubicFarms Announces Closing of $ 25.3 Million Equity Financing Including Full Exercise of Over-Allotment Option



VANCOUVER, BC, June 3, 2021 / CNW / – CubicFarm Systems Corp. (“CubicFarms” or the “Company”) (TSXV: CUB), a local agricultural technology chain, today announced the closing of its previously announced bought deal offering (the “Offer”) of the company’s common shares (the “Common Shares”). “).

The offering was made through a group of underwriters consisting of Raymond James Ltd. as Principal Underwriter and Sole Bookrunner, Roth Canada ULC, Canaccord Genuity Corp. (the “prospectus supplement”) to the simplified base shelf prospectus of the Company dated April 20, 2021 (the “Prospectus”).

In connection with the placement, the Company issued a total of 18,740,742 common shares at a price of C $ 1.35 per common share for gross proceeds to the Company of C $ 25,300,001, which includes the exercise, in full, by the underwriters of the over-allotment option granted by the Company to purchase 2,444,445 additional common shares at a price of Cdn $ 1.35 per common share.

The net proceeds of the offering of approximately 23.8 million Canadian dollars will be used to support the continued global growth of CubicFarms, research and development efforts to optimize yields, automation and machine functionality, expand addressable crop varieties, and for working capital and other corporate goals of the company.

“We are delighted with the overwhelming support of our global institutional shareholders, like Handelsbanken, and their confidence in our vision,” said Dave Dinesen, CEO of CubicFarms. “The strong demand for this bought deal financing allowed us to increase and fully allocate the over-allotment option with the closing of $ 25.3 million. This funding allows us to fully capitalize on our accelerated growth in our sales pipeline and our market-leading R&D program. “

No securities regulatory authority has approved or disapproved of the contents of this press release. This press release does not constitute an offer to sell or the solicitation of an offer to buy, nor will there be a sale or acceptance of an offer to buy such securities in any jurisdiction. in which any such offer, solicitation or sale would be illegal.

The common shares have not been and will not be registered under the United States Securities Act of 1933, as amended (the “US Securities Act”), or any other United States state securities laws, and may not be offered or sold in United States without registration under the US Securities Act and any applicable state securities laws or compliance with the requirements of an applicable exemption therefrom. This press release does not constitute an offer to sell or the solicitation of an offer to buy any securities in United States, nor will there be any sale of such securities in any jurisdiction in which such offering, solicitation or sale would be illegal.

CubicFarms Completes Previously Announced Debt Reduction

CubicFarms also announced that following its press release dated May 3, 2021 (the “initial press release”), the Company has completed its previously announced issuance to the Business Development Bank of Canada (“BDC”) of 128,205 ordinary shares of the Company (the “Issue”) at a deemed price of $ 1.56 per common share.

“We are delighted to be working with our long-term lending partner to reduce the debt associated with our C $ 2.5 million a growth capital loan with more favorable terms for the company, ”said Dave Dinesen, CEO of CubicFarms. “This demonstrates continued confidence in our continued development and the growth of the company. “

The initial transaction was classified as a share purchase transaction under policy 4.3 of the TSX Venture Exchange (the “Exchange”), and upon review by the Exchange, the issue was considered as a Loan premium in accordance with Exchange policy 5.1.

CubicFarms approves grant of options

The Company also announced today that its Board of Directors has approved the granting of 700,000 stock options (the “Options”) to certain directors and officers of the Company pursuant to the Stock Option Plan. ‘purchase of Company shares. The Options have an exercise price of $ 1.47 per share, acquired at the rate of one third (1/3) each of the 12, 24 and 36 months from the grant date, and have a term of 5 years. The grant of options is subject to the approval of the TSX Venture Exchange.

About CubicFarms

CubicFarms is a local chain, an agricultural technology company that develops and deploys technology to feed a changing world. Its proprietary agricultural technology solutions enable producers to produce high quality, predictable products and fresh feed for livestock with HydroGreen Nutrition Technology, a division of CubicFarm Systems Corp. The CubicFarms â„¢ 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, the planet and the economy.

For more information, please visit

On behalf of the board of directors

“Dave Dinesen”

Dave Dinesen, CEO

Forward-looking statements and other caveats

Certain statements contained in this press release constitute “forward-looking statements” or “forward-looking information” within the meaning of applicable securities laws, including, without limitation, statements regarding: the offering; the use of the proceeds of the Offer; the jurisdictions in which the Offer will be made; the supplement ; closing of the Offer; and the Company’s products. Such statements involve known and unknown risks, uncertainties and other factors that may cause CubicFarm Systems Corp.’s actual results, performance or achievements, or industry results, to be materially different from any results. , future performance or achievement expressed or implied. by such forward-looking statements or information, including obtaining by the Company the approval of the placement from the TSX Venture Exchange and other factors disclosed under “Risk Factors” in the Company’s annual information form for the year ended December 31, 2020, which is incorporated by reference into the Prospectus, and the risks described in other documents incorporated or deemed to be incorporated by reference into the Prospectus. Such statements can be identified by the use of words such as “intend”, “expect”, “believe”, “plan”, “anticipate”, “estimate”, “foresee”, “foresee” , “Predict” and other similar terminology, or state that certain actions, events or results “may”, “may”, “could”, “would”, “could” or “would” be undertaken, 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 press release. Accordingly, there can be no assurance that such statements will prove to be accurate and that actual results and future events could differ materially from those anticipated in such statements. Unless required by securities disclosure laws and regulations applicable to the Company, the Company assumes no obligation to update these forward-looking statements if the Company’s expectations regarding future events, performance or results change. .


SOURCE CubicFarm Systems Corp.

For more information: Media contact: Andrea Magee, T: 236.885.7608, E: [email protected]; Investor contact: Tom Liston, T: 416.721.9531, E: [email protected]

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