CubicFarm Systems Corp. announced a non-brokered private placement with Harry DeWit and company insiders, for gross proceeds of up to $1.162 million.
Insiders participating in the offering include chairman Jeff Booth, chief operating officer Rodrigo Santana and chief financial officer Tim Fernback.
Harry DeWit is chief executive officer and president of Blue Sky Farms, a Texas and Ohio-based dairy and farming business producing 1.2 million lb. of milk per day.
"Sustainability, efficiency and automation have always been at the core of my business endeavors. I have looked to technology to conserve water, reduce labor and generally improve the efficiency of my dairy operations. When CubicFarms' board member John de Jonge introduced me to CubicFarms' HydroGreen system that automates the growing of livestock feed, I had to learn more about the company," DeWit said.
"CubicFarms' HydroGreen technology enables a more sustainable farming operation in that one system displaces 30 acres of land used for livestock forage production, not to mention the cost savings in labor, water, energy and fertilizers. Providing fresh HydroGreen feed on a daily basis to a herd of cows should bring the herd to a higher production level with health benefits," he noted.
CubicFarms CEO Dave Dinesen added, "Top tier ag-tech investor Ospraie Ag Science has added tremendous value to CubicFarms from day one of becoming a strategic investor just two months ago. We have benefitted from Ospraie's vast network, sector expertise and vision in our company-building efforts. We are now pleased to welcome Harry to the roster of company supporters. An investment from an industry stalwart such as Harry is a big vote of confidence in CubicFarms and our HydroGreen livestock feed division."
The net proceeds from the offering are expected to be used for research and development to expand machine capabilities and crop varieties and working capital, the announcement said.
The offering is scheduled to close on or about July 28, 2020 and is subject to certain conditions.
CubicFarms is a technology company that is developing and deploying technology to feed a changing world. Its proprietary technologies enable growers around the world to produce high-quality, predictable crop yields. CubicFarms has two distinct technologies that address two distinct markets. The first technology is its patented CubicFarm System, which contains patented technology for growing leafy greens and other crops. The second technology is its HydroGreen System for growing nutritious livestock feed, which utilizes a unique process to sprout grains, such as barley and wheat, in a controlled environment with minimal use of land, labor and water