MONTREAL, March 4, 2013 (GLOBE NEWSWIRE) -- URBAN BARNS FOODS INC. (URBF.QB) ("the Company" or "URBAN BARNS"), is pleased to announce it has signed a Memorandum of Understanding (MOU) with one of its minority shareholders (the "Local Partner"), to explore the possibility of establishing growing facilities (the "Project") in Alberta, Canada, (the "Territory") to offer food security, food safety and traceability of local grown vegetables, including lettuce, basil, cilantro and spinach, for the food service and hospitality sector in addition to food retailers.
In accordance with the terms and provisions of the MOU, the Local Partner will fund 100% of the Project and the Company will supply a licensing agreement and technical services including training, support and know-how to assist the growing function to maintain quality control for an agreed-upon fee. Urban Barns will construct the machines, and provide the nutrients and the approved seeds during the license period of 5 years with a 5 year renewal clause, provided that certain volume milestones are reached.
Dan Meikleham, Chairman of Urban Barns, commented, "Urban Barns has invested extensively in research and development for over three years in the creation of its unique, proprietary Cubic Agriculture growing system. Our initial facility in Langley, British Columbia opened for business last month and now produces leafy salad greens and herbs under the Urban Barns Local Grown brand to some of Vancouver's leading hotels and restaurants. The Company has successfully secured sales commitments and interest for all of its current production capacity."
Richard Groome, President and Director of Strategic Marketing added, "The Company's short term strategy is to develop local growing facilities in major cities across Canada. It is contemplated that the proposed new facility be 7,500 square feet and start with 10 machines expandable up to 40 as the need arises. We expect the Alberta facility to be operational by the fall of 2013. Additionally, since we declared commercial production there has been substantial interest in the Urban Barns business model and we have identified and commenced discussions with target business partners in several Provinces across Canada and in over 15 countries around the world."
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.