MONTREAL, Jan. 31, 2013 (GLOBE NEWSWIRE) -- URBAN BARNS FOODS INC. (OTCQB:URBF) ("the Company" or "URBAN BARNS"), is pleased to announce it has signed a Letter of Intent with an unrelated third party (the "Party"), to explore the possibility of establishing growing facilities in each of Barbados, Trinidad & Tobago and Jamaica (the "Territories") to offer food security, food safety and traceability of local grown vegetables, including lettuce, basil, watercress, mint, Swiss chard, cilantro and spinach, for local hotels and other food retailers (the "Project").
In accordance with the terms and provisions of the Letter of Intent, the Party will fund and conduct a market study of the Territories for the Project and, upon successful completion of the market study, will jointly negotiate and execute a memorandum of understanding outlining the structure of the Project (the "MOU"). Following execution of the MOU, the Party will undertake to raise funds to finance a growing facility in each of the countries and the Company will supply technical services to assist the growing function to maintain quality control for an agreed upon fee. It is anticipated that the MOU will culminate in a definitive and binding agreement for the implementation of the Project, which will include documentation for the establishment and operation of a local entity, a licensing agreement between the local entity and the Company and a technical service agreement between the local entity and the Company for provision of technical services, training, support and know-how.
Dan Meikleham, Chairman of Urban Barns, commented, "Over the past year we have been approached by a number of interested parties waiting for Urban Barns to establish proof of concept of our business model. Since our recent launch our initial clients are a testimony in our ability to grow and deliver just-in-time inventory within 2 hours of a purchase order."
Richard Groome, President and Director of Strategic Marketing, added, "Now that we have established our first niche market our Cubic Farming innovation has the attention of a number of potential domestic and international strategic business partners. We have identified and commenced discussions with business entities and individuals in select territories such as Canada, the USA, the Caribbean, Europe, the Middle East, Asia, and South America. We are pleased that our first agreement is with a local third generation business family from the target territory."
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 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. Our commitment to our consumers is reflected through our motto, "Purely Fresh, Naturally Tasty, and Completely Healthy". Urban Barns and Urbanbarnsfoods.com and Cubic Farming are registered trademarks and the copyright of Urban Barns Foods Inc. All other company and product names mentioned are used only for identification purposes and may be trademarks or registered trademarks of their respective companies.
Forward-Looking Statements:
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 forward-looking statements. Investors are also directed to consider all other risks and uncertainties.