BDC’s Cleantech Practice has agreed to provide CubicFarms with growth capital through a commercial debt financing.
According to CubicFarms CEO Dave Dinesen, the non-dilutive financing from BDC combined with recent capital raises from Ospraie Ag Science and dairy entrepreneur Harry DeWit will significantly boost CubicFarms’ cash reserves and position us well to strategically scale the business.
Ospraie Ag Science made a $5 million strategic investment in May 2020 and now holds an 19% interest in CubicFarms.
DeWit led a $1.16 million private placement round that was joined by CubicFarms insiders Chairman Jeff Booth, COO Rodrigo Santana, and CFO Tim Fernback.
“BDC is proud to support one of Canada’s leaders in controlled-environment agriculture in its mission to provide the world with sustainably produced food through cutting-edge machine and crop technologies,” commented BDC’s Cleantech Practice Director Karim Kennedy.
“CubicFarms helps to solve many problems plaguing traditional agriculture, namely weather inconsistencies and the declining availability of arable land, water, labour. Controlled, indoor growing is poised to become a mainstream method of farming as farmers discover its high crop quality, high yield benefits – while minimizing environmental impacts through a vast reduction of farm water usage and emissions from localizing food production.”
CubicFarms trades on the TSXV Exchange under the symbol CUB.