CubicFarm Systems readies for expansion into cannabis sector as Bevo Agro Inc. prepares to become Zenabis Global
Bevo Agro Inc. – which is merging with licensed cannabis producer Sun Pharm to become Zenabis Global – introduces CubicFarm Systems Corp., an agriculture technology business that intends to disrupt the vertical farming space with patented technology that automates large-scale commercial farming operations. CubicFarms operates its own facility and is installing climate-controlled growing systems for clients around the world.
Vancouver, British Columbia – October 9, 2018 – On October 4, 2018, Bevo Agro Inc. (TSXV: BVO) (“Bevo”) announced that it had signed an Arrangement Agreement dated October 4, 2018 with Sun Pharm Investments Ltd. (“Sun Pharm”) for a reverse take-over of Bevo, and announced its intent to change its name to Zenabis Global Inc (“Zenabis”). Zenabis will have nearly 3.5 million square feet of available production space.
Today, Bevo introduces CubicFarm Systems Corp. (“CubicFarms”), an innovative, agriculture technology business that was developed by the Bevo management team. As part of the Arrangement Agreement cited above, Bevo’s ~43% equity ownership in CubicFarms will be spun out to Bevo’s existing shareholders, and CubicFarms intends to simultaneously list on the TSXV as a separate company. Zenabis (through Sun Pharm) also holds a stake in CubicFarms that it will retain post-amalgamation. This investment will be held by Zenabis Ventures, Zenabis’ wholly-owned cannabis venture platform.
CubicFarms is the developer of patented technology that automates large-scale commercial farming operations in climate controlled growing chambers. By recycling water, each crop uses a fraction of the water required under traditional farming methods. Further, each machine is constructed inside an individually climate controlled growing chamber, allowing optimized climate, lighting, nutrients and other plant-specific needs, leading to faster growing cycles and year-round production. Utilizing CubicFarms’ patented “undulating path” conveyor system, all plants are brought to those harvesting and planting, reducing labour significantly and increasing yield per cubic foot compared to other growing systems. CubicFarms currently grows lettuce and leafy greens; microgreens; and basil and herbs. CubicFarms is also exploring cannabis cultivation applications in a joint venture with Zenabis named ZenCube. In addition, CubicFarms is further optimizing the technology for the nutraceutical and animal feed space.
CubicFarms has been building and selling systems since 2016, with its systems shipped from a state-of-the-art manufacturing facility. This facility is ramping up production to meet CubicFarms’ growing global sales pipeline. CubicFarms operates its own commercial scale CubicFarm system, which it installed this summer in Pitt Meadows, British Columbia. This facility grows and sells a wide variety of leafy greens to the local retail and wholesale market, and also accommodates research and development.
CubicFarms has assembled a world class management team comprised of agriculture industry and business veterans and is entering the ramp up and execution phase of its business plan.
“I am delighted that Zenabis sees the value in automating the growing process and reducing the space and labour requirements through utilizing CubicFarms technology to advance their growing capacity,” said Dave Dineson, CEO of CubicFarm Systems Corp. “The joint venture between CubicFarms and Zenabis will make available cannabis-optimized growing machines for global customers who want to lower their growing costs, increase yields, reduce labour, water and energy usage, eliminate pesticides, and enjoy consistent quality growing.”
“It’s exciting that CubicFarms can expand on its patented technology to enter into a whole new vertical market,” said Leo Benne, Chief Growing Officer of Bevo (Zenabis Global). “CubicFarms offers growers unparalleled accuracy and predictability, so that no crop ever goes to waste, while saving money and time by using a fraction of the resources.”
“As a leading licensed producer of cannabis, we have long admired the pioneering technology introduced by CubicFarms,” said Rick Brar of Sun Pharm Investments, the new CEO of Zenabis. “We look forward to working in partnership to help CubicFarms expand into worldwide markets as Zenabis continues to meet the growing global demand for cannabis.”
CubicFarms Management Team
Dave Dinesen – Chief Executive Officer
Dave is an expert in global operations management, corporate client acquisition, and non-traditional sales approaches. As the Chief Executive Officer of BackCheck, Dave grew the company from a small business based in Surrey, British Columbia to an industry-leading, internationally-renowned company operating on three continents. Dave has a passion for agriculture, and has been working with Bevo to develop CubicFarms since 2015.
Dean Drysdale – President of Cubic Capital
Dean has extensive experience growing early-stage ventures into large international companies. Working in a variety of industries, Dean’s two most successful ventures were Carmanah Technologies and BackCheck. At BackCheck, Dean led the team as the Chief Financial Officer and in various board positions. Dean is currently the Chairman of Merchant Advance Capital, an innovative financial firm.
John Hoekstra – Chief Financial Officer
John is currently the Executive Vice President and Chief Financial Officer of Bevo. He joined Bevo in 2004, shortly after Bevo went public. Prior to joining Bevo, John worked as a Supply Chain Manager at Air Liquide Canada, and at Unitor Ships Service as Branch Manager. He is a Chartered Professional Accountant (CPA, CGA) and holds a Business Administration degree from Redeemer University.
Leo Benne – Chief Innovation Engineer
Leo is currently Vice President and Director of Bevo. Leo gained advanced knowledge of modern horticultural methods at Rijks Middelbare Tuinbouwschool in Holland. With experience in the application of computer technology to the production of plants, he has been a key figure in the development of Bevo. Leo has overseen every stage of the company’s operations, from planting to shipping. Leo has led Bevo to become the leading plant propagator in North America.
John de Jonge – Chief Design Engineer
John is a seasoned agriculture and manufacturing executive. John first entered the agriculture industry in 1995 when he purchased Artex Barn Solutions. While at Artex, John oversaw the shift of manufacturing from Canada to China. As a result of this shift, he has become well-known in the industry for bringing quality manufactured products to markets around the world and has invested in multiple equipment dealerships in both Canada and the United States.
Zenabis Key Milestones
- On October 4, 2018 Bevo and Sun Pharm announced the RTO and the intent of Bevo to change their name to Zenabis Global Inc. upon completion of the amalgamation
- On October 5, 2018, Zenabis released a presentation introducing the combined business
- As of October 9, 2018, Zenabis has secured purchase orders from government and third party retailers/distributors in New Brunswick, Nova Scotia, and British Columbia, in addition to distribution in Europe.
About Bevo Agro
Bevo Agro is North America’s leading supplier of propagated agricultural plants, operating approximately 53 acres of state-of-the-art greenhouse facilities on 98 acres of land in Langley, British Columbia and 20 acres of land in Pitt Meadows, British Columbia. The company has entered into a binding agreement to acquire 10.4 acres of greenhouse space on 50 acres of land in Aldergrove, British Columbia (the “Greenhouse Acquisition”). The Company’s main products have been the propagation of vegetable plants such as tomatoes, peppers, cucumbers, and other plants such as bedding plants, flowers and grasses. The Company markets its products to established greenhouse growers, nurseries and retail outlets throughout North America.
For more information, visit: http://www.bevofarms.com.
About Sun Pharm
Sun Pharm is currently a leader in agriculture, technology, pharmaceutical sales, consumer packaged goods, international distribution and brand marketing, with cannabis and cannabis-related purchase orders from the provinces of New Brunswick, British Columbia, Nova Scotia, and Yukon Territory. The company’s Zenabis brand serves the medical-use market, and their Namaste brand serves the adult-use market. Sun Pharm is currently a privately-held cannabis company which has one of the largest, federally licensed indoor medical cultivation footprints in Canada, operating two licensed production facilities in British Columbia and New Brunswick, with a third expect to be coming online shortly in Nova Scotia. These facilities encompass 660,000 square feet of indoor pharmaceutical grade cannabis production space, strategically positioned on Canada’s coasts, facilitating national distribution and access to international markets. Sun Pharm is currently working towards globally recognized EU GMP certifications. Sun Pharm has one of the most experienced management teams in the industry, with expertise in retail consumer packaged goods, global pharmaceutical sales and manufacturing, quality assurance, and commercialized cultivation. The growing team has more than two decades of experience in organic cultivation and distribution of herbs and nutraceutical products throughout the Americas, North Africa, and the Middle East. Sun Pharm’s sales team has more than two decades in product development, commercialization, and retail and pharmaceutical sales including international distribution.
For more information, visit: https://www.zenabis.com.
CubicFarms Systems Corp. is an Ag Tech and vertical farming technology company that utilizes revolutionary, patented technology to cultivate high-quality produce. Founded in 2015, the company’s mission is to provide farmers around the world with efficient growing systems capable of producing predictable crop yields. Using its unique undulating growing system, CubicFarms solves the two main challenges within the indoor farming industry: high electricity and labor costs. Currently, CubicFarms cultivates living lettuce, living basil and microgreens at its own facility in Pitt Meadows, British Columbia and is partnering with other farmers to establish facilities around the world.
For more information, visit: http://www.cubicfarms.com/.