Top Ag-tech investor Ospraie Ag Science has made a $5 million strategic investment in Langley’s CubicFarm Systems.
The investment was made as a non-brokered private placement and Ospraie now holds an 18.7% interest in CubicFarms.
CubicFarms is a provider of automated controlled-environment growing systems that produce commercial-scale quantities of fresh produce and nutritious livestock feed. The systems work continuously all year, providing consistent and predictable produce and feed without the typical investment in labour, land, water and fertilizer.
Its reduced growing footprint allows growers to set up a CubicFarms system in and around large population centres, and supply their local markets while shortening distribution chains and the amount of time that food spends in transit.
“Over the past month, we’ve seen a sharp increase in inquiries from interested parties worldwide for our technology, to enhance food production and improve food security and self-sufficiency. The Covid-19 pandemic exposed fragility in supply chains, such as labour shortages, disruptions in the packing and transportation sectors, and increasing uncertainty in the domestic and international markets,” said CubicFarms CEO Dave Dinesen.
“CubicFarms’ automated growing systems have emerged as a key solution to overcoming these challenges by allowing growers to localize food production and provide their markets with fresh produce and nutritious livestock feed reliably and consistently.”
“We are thrilled to welcome Ospraie as a strategic partner as CubicFarms embarks on its exciting next chapter. The investment by Ospraie, one of the top technology investors in the agricultural space, is a testament to the CubicFarms vision, team and technology,” said Jeff Booth, CubicFarms Chairman.
“Ospraie’s deep industry and commercial expertise, in addition to its extensive network, are expected to add significant value to CubicFarms and unlock new potential synergies with other companies in the Ospraie portfolio,” Mr. Booth added.
Dwight Anderson, Chief Investment Officer at Ospraie Ag Science, commented, “The agricultural value chain is rapidly evolving and technology infrastructure to overcome the pains of traditional farming is sorely needed. CubicFarms is one part of the multivariable solution required to address this need for safe, reliable, environmentally-friendly and affordable food.”
Ospraie Ag Science is also an investor in Vancouver’s Terramera, where Booth is also the Chairman.
CubicFarms trades on the TSXV Exchange under the symbol CUB.