MONTREAL, Aug. 21, 2014 (GLOBE NEWSWIRE) -- Urban Barns Foods Inc. (OTCQB:URBF) ("Urban Barns") is pleased to announce that it has closed a financing in the amount of $325,000 through the issuance of 6,500,000 units at a price of $0.05 per unit. Each unit consists of one share of the Company's Class A common stock and one warrant exercisable into one share of the Company's Class A common stock at a price of $0.075 per share for a term of three years. Dundee Agricultural Corporation, a significant shareholder, subscribed for 4,000,000 units and Jeremy Kendall, a director, subscribed for 1,000,000 units, respectively.
The proceeds of the financing will provide Urban Barns with working capital to operate the world's first commercial Cubic Farming™ operation, located in Mirabel, Québec.
Shareholder Update
Urban Barns is pleased to announce that it has completed the phase 1 development of its new facility in Mirabel, Québec encompassing 10 growing machines plus three research and development machines to be used by McGill University on site. The company is now growing varieties of lettuce, micro greens, and fine herbs, and is supplying many local restaurants with produce picked and delivered on the very same day.
Operations
On the operational side, all machines are in full production with weekly harvests of lettuce, basil and microgreens. Planning is underway for Phase 2 development with a new much larger Cubic Farming growing machine prototype that is scheduled to arrive in early September. The new prototype machine will be tested on site and once testing is complete, the company will build six of the large Cubic Farming machines for the planned opening of Phase 2 in early 2015. Preparations in the Food Safety program are underway for the Canada GAP audit before the end of 2014.
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About Urban Barns Foods Inc.
Urban Barns uses patent pending proprietary equipment to produce affordable vegetables in a secure and controlled indoor environment. By setting up subsidiary facilities and growing locally, Urban Barns can focus on supplying any community, irrespective of the regional climate, effectively reducing shipping times and related spoilage costs. Urban Barns has the unique ability to scale and cater to the demands of all major communities. The company's commitment to consumers is reflected through its motto, "Purely Fresh, Naturally Tasty, and Completely Healthy".
Forward-Looking Statements
Except for historical information contained herein, the matters set forth above may include forward-looking statements that involve certain risks and uncertainties. Words such as "may", "could", "anticipate", "believe", "estimate", "expect", "intend", "plan", and similar expressions are used to identify forward-looking statements. These forward-looking statements are based on the current beliefs of management, as well as assumptions made by and information currently available to management. Actual results could differ materially from those contemplated by the forward-looking statements. Urban Barns does not undertake any obligation to update any forward-looking statements and cautions investors to consider all other risks and uncertainties, including those disclosed in Urban Barns' filings with the United States Securities and Exchange Commission.