CubicFarm Systems Corp. Announces Reinstatement of Trading on the TSX Venture Exchange and Company Updates
Rhea-AI Summary
CubicFarm Systems Corp. (TSXV: CUB) has announced the reinstatement of its common shares trading on the TSX Venture Exchange following the revocation of a failure-to-file cease trade order (FFCTO) on January 16, 2025. The FFCTO was initially issued by the British Columbia Securities Commission on July 15, 2024.
The company disclosed that interim CEO John de Jonge and his wholly-owned company provided an unsecured, interest-free loan of $1,288,438 as of September 30, 2024, to support working capital and operational needs. This transaction, while constituting a related party transaction, is exempt from formal valuation and minority shareholder approval requirements.
Additionally, CubicFarms is involved in a legal claim from November 21, 2021, regarding an alleged breach of a consulting agreement. A mediation is scheduled for April 2025, and the company maintains a strong position in its defense, stating the claim is not expected to materially affect its business operations or financial condition.
Positive
- Trading reinstatement approved on TSX Venture Exchange
- Secured $1,288,438 in interest-free financing for working capital
Negative
- Previously suspended from trading due to failure-to-file cease trade order
- Facing legal claim for alleged breach of consulting agreement
News Market Reaction 1 Alert
On the day this news was published, CUBXF gained 125.00%, reflecting a significant positive market reaction.
Data tracked by StockTitan Argus on the day of publication.
Vancouver, British Columbia--(Newsfile Corp. - January 28, 2025) - CubicFarm® Systems Corp. (TSXV: CUB) ("CubicFarms" or the "Company"), a local chain agricultural technology company, is pleased to announce, further to its previous press release of July 15, October 2, October 17, October 29, 2024, and January 17, 2025, that the TSX Venture Exchange (the "Exchange") has accepted its application for reinstatement of trading of the Company's common shares on the Exchange. The Exchange suspended trading in the common shares as a result of a failure-to-file cease trade order (the "FFCTO") issued by the British Columbia Securities Commission on July 15, 2024. The FFCTO was revoked on January 16, 2025. The Company expects its common shares to reinstate trading on the Exchange soon.
Company Updates
As of September 30, 2024, John de Jonge, interim CEO of the Company, and a company wholly owned by him provided a loan of
The Company is party to a claim that arose in the ordinary course of business on November 21, 2021, asserting that the Company was in breach of a consulting agreement by failing to make required payments and by purporting to terminate the services of the plaintiff, contrary to the terms that were agreed. The Company has a scheduled mediation in April 2025 and believes strongly in its position. As at today's date, the potential exposure the Company faces cannot be measured reliably, and the claim is not expected to have a material effect on the business, operations or financial condition of the Company.
About HydroGreen
HydroGreen's Automated Vertical Pastures™ technology utilizes a unique process to sprout grains, such as barley and wheat, in a controlled environment with minimal use of land, labour and water. HydroGreen's fully automated indoor growing technology performs all growing functions including seeding, watering, lighting, harvesting, and re-seeding-all with the push of a button-to deliver nutritious fresh forage for livestock without the typical investment in fertilizer, chemicals, fuel, field equipment, and transportation. Automated Vertical Pastures™ not only provide superior nutritious feed to benefit the animal but also enable significant environmental benefits to the farm.
About CubicFarms
CubicFarms is a local chain agricultural technology company developing and deploying technology to feed a changing world. Its proprietary ag-tech solutions enable growers to produce high quality, predictable produce and fresh livestock feed with HydroGreen Nutrition Technology, a division of CubicFarm Systems Corp. The CubicFarms™ system contains patented technology for growing leafy greens and other crops onsite, indoors, all year round. CubicFarms provides an efficient, localized food supply solution that benefits our people, planet, and economy.
For more information, please visit https://cubicfarms.com or contact:
Michael Kyne
Chief Financial Officer
+1 236 305 6091
Email: info@cubicfarms.com for media or investors@cubicfarms.com for investor inquiries.
Neither TSX Venture Exchange nor its Regulation Services Provider (as that term is defined in policies of the TSX Venture Exchange) accepts responsibility for the adequacy or accuracy of this release.
Forward looking and other cautionary statements
Certain statements in this release constitute "forward-looking statements" or "forward-looking information" within the meaning of applicable securities laws, including, without limitation, statements with respect to the trading of the Company's common shares on the Exchange, repayment of the related party loan or the outcome of litigation. Such statements involve known and unknown risks, uncertainties, and other factors and assumptions which may cause the actual results, performance, or achievements of CubicFarm Systems Corp., or industry results, to be materially different from any future results, performance, or achievements expressed or implied by such forward-looking statements or information including, without limitation, the risk of the Company not being reinstated with the TSXV and the other factors disclosed under "Risk Factors" in the Company's annual information form for the year ended December 31, 2022, and those risks described in other documents incorporated or deemed to be incorporated by reference in the prospectus. Such statements can be identified by the use of words such as "intend", "expect", "believe", "plan", "anticipate", "estimate", "scheduled", "forecast", "predict", and other similar terminology, or state that certain actions, events, or results "may", "can", "could", "would", "might", or "will" be taken, occur, or be achieved.
These statements reflect the Company's current expectations regarding future events, performance, and results and speak only as of the date of this news release. Consequently, there can be no assurances that such statements will prove to be accurate and actual results and future events could differ materially from those anticipated in such statements. Except as required by securities disclosure laws and regulations applicable to the Company, the Company undertakes no obligation to update these forward-looking statements if the Company's expectations regarding future events, performance, or results change.
To view the source version of this press release, please visit https://www.newsfilecorp.com/release/238796
FAQ
When will CUBXF resume trading on the TSX Venture Exchange?
What was the size of the loan provided to CUBXF in September 2024?
Why was CUBXF suspended from trading in July 2024?
What legal challenges is CUBXF currently facing?
