Ospraie Ag Science has increased its ownership stake in CubicFarms.
Ospraie paid $5.25 million to purchase 7.5 million additional common shares in the publicly traded company. Before the Transaction, Ospraie owned approximately 18.9% of the company on a non-diluted basis.
Ospraie now owns almost 30 million common shares of CubicFarms, representing just over 25% of the issued and outstanding common shares of CubicFarms on a non-diluted basis.
According to CubicFarms CEO Dave Dinesen, in order for Ospraie to increase its shareholding in CubicFarms without triggering a takeover bid, an agreement was reached through a non-dilutive, private transaction with a few large founding shareholders, who agreed to reduce their personal holdings to enable the long term, material ownership by Ospraie.
“We are pleased that leading ag-tech investor Ospraie, whom we welcomed as our strategic investor through a $5 million private placement in May, has recognized our technology’s potential to feed a changing world, in the short time that it has been our shareholder,” said Dinesen.
“Ospraie’s deep industry and commercial expertise, in addition to its extensive network, have already added much value to CubicFarms. We look forward to the continued close relationship with our long-term strategic investor, and working together to unlock new potential synergies with other companies in its portfolio.”
CubicFarms trades on the TSXV Exchange under the symbol CUB.