MONTREAL, April 14, 2014 (GLOBE NEWSWIRE) -- URBAN BARNS FOODS INC. (URBF.QB) (the "Company" or "Urban Barns"), announces that it has completed the conversion of US$407,732.52 of debts owed to insiders, consultants, suppliers and their related parties into class A common shares ("Shares") of the Company (the "Debt Conversion") at a conversion price equal to the 20-day weighted average trading price as at April 7, 2014, being US$0.0234 per Share. The Company has issued 17,424,082 Shares under the Debt Conversion, which represents 6.4% of the aggregate number of Shares issued and outstanding Shares following the Debt Conversion. The Company now has 270,746,981 Shares issued and outstanding. Shares issued under the Debt Conversion are subject to a six month hold period as required under applicable securities laws.
Richard Groome, CEO , states "We are very pleased that the balance sheet of the company has improved dramatically with some $407,732.52 dollars in debt now converted into equity and new equity injections of $1.5m US ( post-closing of the recent equity financing ) since October of 2013, leaving the company with zero long-term debt and minimal current debt to suppliers."
Urban Barns invites all interested parties to follow the building and progress of the world's first commercial Cubic Farm — live, in real time — currently underway in Mirabel, Quebec. Phase 1 of the build out consists of 10 machines. The Cubic Farming machines are now assembled with LED lights and the Company expects to be in production within the next 30 days.
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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. Our commitment to our consumers is reflected through our motto, "Purely Fresh, Naturally Tasty, and Completely Healthy". The websites www.urbanbarns.com and www.urbanbarnsfoods.com are registered trademarks and Cubic Farming and Cubic Agriculture are copyright of Urban Barns. All other company and product names mentioned are used only for identification purposes and may be trademarks or registered trademarks of their respective companies.
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 expanding 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.