URBAN BARNS FOODS 1 Disclaimer Except for historical information contained herein, the matters set forth above may be forward-looking statements that involve certain risks and uncertainties that could cause actual results to differ from those in the forward-looking statements. Words such as "anticipate", "believe", "estimate", "expect", "intend" and similar expressions, as they relate to Urban Barns or its management, identify forward-looking statements. Such 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 as a result of certain factors such as the level of business and consumer spending, the amount of sales of Urban Barns ' products, the competitive environment within the industry, the ability of Urban Barns to continue to expand its operations, the level of costs incurred in connection with Urban Barns ' expansion efforts, economic conditions in the industry and the financial strength of Urban Barns ' customers and suppliers. Urban Barns does not undertake any obligation to update such forwardlooking statements. Investors are also directed to consider all other risks and uncertainties. 2 December 2009 Urban Barns went public 2009 September 2009 Commenced R&D January 2011 Constructed Cubic Farming™ prototype machine 2010 May 2012 First success in producing quality results in quantity. 2011 May 2011 PCT Patent Protection filed 2012 Grand Opening of Commercial Production Mirabel, Qc. Phase 2 - December 2014 –Expected installation of six new GEN4 machines June – Expected Phase 3 Launch in Mirabel 2013 October 2013 Dundee Agricultural Corporation buys ~ 30% of Urban Barns. December 2013 purchased additional 10% ownership. 2014 October 2014: Planning for Phase 2, 3 & 4 Launch in 2015 2015 Expected Next Barn 2016 November – Expected Phase 4 Launch in Mirabel 3 WHAT IS CUBIC FARMING? 4 What Is Cubic Farming? Propriety, patent-pending growing system Internal growth system that maximizes space & yields Looped conveyer system = easy planting and harvesting Automated watering & nutrients Advanced uniform LED technology Controlled environment that creates the perfect setting for plant growth 5 6 WHY CUBIC FARMING? 7 Why Cubic Farming? • • • • • • • • • • • Growing 365 days a year 100% controlled environment No pesticides, herbicides or fungicides No GMOs Minimal water requirements Superior nutritional values Longer shelf life Consistency Customizable sizing & weights Traceability Small labour force 8 THE RESULTS 9 Heads of Lettuce Produced Per Square Foot 10 FRANK MICROGREENS ROYALE BASIL 11 Compare To A Greenhouse? Cubic Farming™ Greenhouse Advantage Lighting Energy Efficient LEDS + Solar Solar, Fluorescent, Incandescent, LED Cubic – uniform light & wavelengths. Fully controllable photoperiod, irradiance level and position of light. Temperature HVAC Furnace Cubic – as greenhouses are subject to large temp changes from external weather, cubic farming™ is a 100% controlled environment where all systems are set to the desired climate. Relative Humidity Humidification & Dehumidification system Dumping air outside of greenhouse Cubic – greenhouse relative humidity can range from 60% to 100%, Cubic Farming levels are kept between 70 and 75%. Atmosphere Carbon Dioxide Carbon Dioxide Due to the open structure of a greenhouse any CO2 injected into a greenhouse typically leaves the greenhouse within 5 minutes, Cubic Farming™ can hold onto this CO2 for over 1hr (up to 6hrs) for improved control and growth. Energy Recovery Beginning to be used Generally rare but beginning to be used. Both systems need energy recovery systems but the urban agriculture system would be easier to install. Typically less energy is required in the Cubic Farming™ system but exact values have not been measured Management Practices Grower monitoring the production of the plants Grower monitoring the production of the plants Less issues with pests and diseases in the Cubic Farming (can be basically zero). Pests are always a challenge in greenhouses. This results in no pesticides, herbicides or fungicides used in Urban Barns while greenhouses have to use conventional pesticides or organic pesticides. 12 WHY URBAN BARNS 13 Why Urban Barns Technology? • Automation & ease of monitoring • PCT Patent Pending – 50+ Countries • Collaboration with the Canada’s leading university • Consistent pricing & product availability • Year round consistent climate conditions means the Cubic Farm™ is operated by staff with minimum required of training 14 Why Urban Barns Technology? • Can be setup anywhere in the world • Solar panels and dehumidification systems make Urban Barns facility possible in remote areas • No limit to height restrictions as natural light not a factor • Controlled environment prevents entry of nearly all pest & diseases that greenhouses and conventional farms battle with on daily basis 15 McGill University Research & Development 1. LED lighting wavelength selection for maximum growth and production Growth chamber High intensity LED testing Narrow spectrum LED testing (PAR definition) 2. LED testing and optimization within the Urban Barns growing system 3. Substrate testing – hemp fibre 4. Variety selection and cultivar selection 16 Cultivars in Research & Development Arugula/Rocket Beet Broccoli Baby Tomatoes Bell Peppers Chard Chives Cilantro Collard Dill Kale Kohlrabi Lettuce Mustard greens Parsley Radish Spinach Tatsoi 17 Exceptional Nutritional Values USDA STANDARD VS. URBAN BARNS - MAXXAM ANALYTICS 2012 Urban Barns Butterhead P ROT E IN (G/ 1 0 0 G) 0.21 0.22 1.1 1.35 1.77 2.23 2.9 3.7 5.5 6.5 USDA Standard Reference Butterhead TOTAL LIP ID (G/ 1 0 0 G) CARBOHY D RAT E (G/ 1 0 0 G) F IBE R (G/ 1 0 0 G) V ITA M IN C (M G/ 1 0 0 G) 18 McGill University Nutritional Testing – August 2014 6 5 4 3 2 1 0 URBF Breen URBF Sweet Valentine Mirabel Co. Butterhead Protein (g/100g) Store Bought Romaine URBF Microgreens (7 days) URBF Microgreens (14 days) Carotenoids (mg/100g FM) 19 LED Lighting Wavelength 20 Our Team Board of Directors: Jeremy Kendall, Richard Groome, Robyn Jackson & Horst Hueniken Richard Groome President & CEO Robyn Jackson Director of Business Development Director, VP Logistics Jo-Ann Ostermann General Manager, Mirabel Andrei Ostermann Facilities Manager Theo Stefanescu Production Development & Food Safety Horst Hueniken Eric Craig Greg Hough Business Development & Jr. Sales Associte New Hire Agronomist Meredith Lindsay Media Relations Interm CFO Alex Groome Inside Sales Kent Vaesen Accounting Manager New Hire Financial Controller McGill University Dr. Mark Lefsrud Head Researcher Dr. Valeria Gravel Agronomist Technical Support Graduate Students21 Why Our Team • Mix of talent! Youth and experience • Motivation! All 9 fulltime employees/consultants are share holders • All from outside the industry – no predisposed biases • Proven corporate governance at the board level • Board & Management has vast network & experience in startups and creating shareholder value 22 WHAT THE FUTURE HOLDS 23 How we are further automating our process • Germination • • • • Seeding Monitoring sensors Optimizing already automated watering Transferring to planting cue • Production • Planting • Monitoring sensors • Harvesting • Packaging 24 Montreal Planned Expansion NUMBER OF NEW MACHINES 2014 10 April PHASE II** 7 December PHASE III** 48 PHASE IV** 250 PHASE I* TOTAL 2015 2016 2017 July May 315 Machines *3RD GENERATION MACHINES **4TH GENERATION MACHINES CapEx Per Machine - $150,000 25 Expected Production Capabilities Per Machine Generation Machine Generation Size (Cubic Feet) Spacing Capability Tray Count at Indicated Spacing Lettuce Revenue Per Cycle Revenue Per Cubic Foot 3 1280 12 inches 108 $2,316.60 $1.81 4A 6400 9 inches 720 $30,888.00 $4.83 4A 6400 12 inches 540 $23,166.00 $3.62 4A 6400 13 inches 498 $21,364.20 $3.34 4B 7680 9 inches 864 $37,065.60 $4.83 4B 7680 13 inches 598 $25,654.20 $3.34 26 PHASE II LAYOUT 27 PHASE III LAYOUT Unused Space: Germination room Packing room Operations Staffing quarters # of Machines: 48 total 50,000 sq ft facility $17m CapEx expected 28 Capital Expenditures for Mirabel, QC. Est. CapEx Requirements Sq.Ft Required Phase 1 $1.4m 17,000 sq ft (phase 1&2) Phase 2 $1.4m 17,000 sq ft (phase 1&2) Phase 3 $17.0m 50,000 sq ft Phase 4 $84.7m 210,000 sq ft Total $104.5m 277,000 sq ft 29 Research & Development Relationships. Present and Future. VANCOUVER MONTREAL LAS VEGAS ARIZONA FRANCE SOUTH KOREA 30 The Next Barn 50,000 SQ FT 100,000 SQ FT 200,000 SQ FT # of Machines PHASE I 45 PHASE II 90 PHASE III & PHASE IV 180 TOTAL 4TH GEN MACHINES 315 90 days 120 days 180 days 31 Additional Opportunities 1) Value Added Products 2) Pharmaceuticals 3) Nutraceuticals 4) Medical Marijuana 32 Present & Future Discussions • National & Local Distributors • Major Canadian Retailers • North American Airlines • Food Services 33 URBAN BARNS IS THE FUTURE OF FOOD 34 Richard Groome President & CEO [email protected] 514.907.4989 35
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