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CubicFarms Announces Closing of $16.2 Million Equity Financing Including Full Exercise of Over-Allotment Option

VANCOUVER, BC - CubicFarm Systems Corp. a local chain, agricultural technology company, announced today the closing of its previously announced equity financing consisting of a bought deal offering (the "Offering") of common shares of the Company (the "Common Shares"), and a concurrent private placement.
 
The Offering was conducted through a group of underwriters consisting of Raymond James Ltd. as lead underwriter and sole book runner, and Canaccord Genuity Corp. (collectively, the "Underwriters"), by way of a prospectus supplement to the Company's short form base shelf prospectus dated December 14, 2020 (the "Prospectus").
 
Pursuant to the Offering, the Company issued a total of 12,777,777 Common Shares at a price of $0.90 per Common Share for gross proceeds to the Company of $11,499,999, which includes the exercise, in full, by the Underwriters of the over-allotment option granted by the Company to purchase an additional 1,666,666 Common Shares at a price of $0.90 per Common Share.
 
In addition, CubicFarms closed the previously announced private placement with existing shareholder Harry DeWit, CEO and President of Blue Sky Farms, LLC ("Blue Sky Farms"), a Texas and Ohio-based dairy and farming business, pursuant to which Blue Sky Farms purchased 5,222,300 Common Shares at a price of $0.90 per Common Share for gross proceeds to CubicFarms of $4,700,070 (the "Concurrent Private Placement").
 
The net proceeds from the Offering and Concurrent Private Placement will be used to support CubicFarms' continued global growth, research and development efforts to optimize machine yields, automation and functionality, expand addressable crop varieties and for working capital and other general corporate purposes.
 
Dave Dinesen, CubicFarms' CEO, commented, "Closing this financing is significant for the Company as it provides us with meaningful capital to continue executing on our global growth strategy, and represents an entry point into our capital structure for a number of validating investors. We're very excited about our future, and the opportunity to help break the reliance on long distance, global food supply chains with our "Local Chain" agriculture technology, which will allow local farmers everywhere and anywhere to grow produce or nutritious live green animal feed in close proximity to where food is consumed."
 
No securities regulatory authority has either approved or disapproved the contents of this news release. This news release does not constitute an offer to sell or the solicitation of an offer to buy, nor shall there be any sale or any acceptance of an offer to buy these securities in any jurisdiction in which such offer, solicitation or sale would be unlawful.
 
The Common Shares have not been, and will not be, registered under the United States Securities Act of 1933, as amended (the "U.S. Securities Act"), or any United States state securities laws, and may not be offered or sold in the United States without registration under the U.S. Securities Act and all applicable state securities laws or compliance with the requirements of an applicable exemption therefrom. This press release shall not constitute an offer to sell or the solicitation of an offer to buy securities in the United States, nor shall there be any sale of these securities in any jurisdiction in which such offer, solicitation or sale would be unlawful.
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