Elevate Farms Inc., Tech-based Vertical Farming, Concludes $22,500,000 Seed Round & Project Equity Financings
TORONTO, March 04, 2020 (GLOBE NEWSWIRE) — Elevate Farms Inc. (“Elevate” or “Elevate Farms”), a tech-based vertical farming company focused on cost-effectively growing leafy green vegetables at mass scale, is pleased to announce the completion of a series of funding events and certain other corporate developments.
On February 10, 2020 Elevate Farms closed its seed round financing at $4,285,000 to augment two binding project financing commitment agreements of: (i) $5,000,000 for the construction of a facility in Welland, Ontario, Canada signed September 27, 2019; and (ii) $13,283,000 for the construction of a similar facility in Hamilton, New Zealand signed November 12, 2019, resulting in achieved equity investments, to date, totalling $22,568,000, all since launching Elevate’s revolutionary patent secured and patent pending technology.Seed Round Financing & New DirectorElevate Farms concluded all participation in its $4,285,000 seed round financing with a final investment of $1,860,000 from Brightspark Ventures, one of Canada’s top performing venture capital firms actively investing in Canadian entrepreneurs since 1999.The funds will help the company aggressively expand operations in Canada, the United States and globally. Mark Skapinker, Managing Partner at Brightspark Ventures, has also joined the board of directors of Elevate and we are excited to supplement our team with his exceptional corporate finance and transactional support, along with his decades-long experience providing strategic direction in entrepreneurial business growth. Project Financing Agreements – Canada & New ZealandIn addition, Elevate is pleased to announce it has entered into two binding financing commitment agreements (the “Agreements”) of: (i) $5,000,000 from Intravision Greens Niagara Inc., for a facility in Welland, Ontario, Canada with construction underway and expected to be operational in 2020; and $13,283,000 from Greenleaf Fresh Limited, for a similar facility in Hamilton, New Zealand, with construction expected to commence by the end of 2020. The Agreements contemplate a series of proposed financing transactions (the “Financing Transactions”) with each element of the Financing Transactions conditional upon the completion of the others including the approval of Elevate’s shareholders and the settlement of definitive agreements.The Financing Transactions are designed not only to provide full funding to each project’s completion but, just as importantly, to be replicable in many other countries around the world.Corporate DevelopmentsThis all builds on an exceptional year for Elevate Farms which saw a rapid series of various agreements reached, not only in Canada and New Zealand but also Spain, the Middle East and, most importantly, in the United States. Elevate’s funding successes as well our growing roster of global partners, being both suppliers and clients, along with our key executive appointments and market momentum, has all culminated at a significant inflection point in the current worldwide discussion of global food security.“Elevate’s seed round of financing was exceptionally well-timed considering the rapidly increasing concerns respecting global food security and its potential solutions,” said Amin Jadavji, Elevate Farm’s Founder and CEO. “We believe the global food market will continue to encounter quality concerns, not only at the point of sale but also during extended transport. Moreover, the environmental impact traditional agriculture is having on our planet is an issue that will only grow as an industry concern. Additionally, with respect to the environmental impacts of farming, we have no doubt Elevate Farms will be a powerful potential solution for the increasing disadvantages that come with traditional agriculture. We are very excited to collaborate with our global partners and significantly scale operations to move our company, and the whole industry, forward.” Key features and benefits of Elevate’s unique solution using hydroponics and a proprietary automation system, paired with photobiology, to grow high-quality leafy greens (such as arugula, kale and basil) in a climate controlled environment include:Integration of fully automated processing & packagingEnvironmental benefits by drastically reducing the use of land (99% reduction); use of water (98% reduction); use of labour required (80% reduction), all from the current levels of traditional farming inputsDelivery efficiencies by way of local suppliers (by definition, all products are locally grown)Analytics dashboard enabling AI and full traceability of product through entire chain of movementTravis Kanellos, Elevate Farm’s Chief Strategy Officer noted, “The vertical farming industry is only scratching the surface of its potential and we fully expect to be leaders in Canada and globally. Our scalability, the significantly reduced labour and carbon footprint we create, as well as our revolutionary IP, provides a distinct advantage over our competitors.” Travis continued, “To have completed our seed funding, anchored by an amazing partner in Brightspark, right as we executed our global agreements has provided Elevate with considerable corporate momentum. We truly have a clear and defined roadmap to the next phase of our growth and to success.”ABOUT ELEVATE FARMSElevate Farms Inc., previously operating corporately as Intravision Greens Inc., is a technology-driven vertically-stacked indoor farming enterprise focused on mass scale and cost effective operations with patent secured and patent pending technology as well as over a decade of advanced photobiology research deployed. www.elevate.farmAmin Jadavji