MONTREAL, June 3, 2013 (GLOBE NEWSWIRE) -- URBAN BARNS FOODS INC. (URBF.QB) ("URBAN BARNS"), is pleased to announce it has signed a Memorandum of Understanding (MOU) with Newfoundland Fresh Produce Inc. ("NFP") to establish an Urban Barns licensed growing facility in Newfoundland and Labrador, Canada (the "Growing Facility").
The Growing Facility will enable NFP to grow vegetables locally that offers food security, food safety and traceability of multiple varieties of vegetables including; lettuce, basil, cilantro and spinach. Urban Barns has also granted NFP the right of first refusal on future exclusive licenses to set up additional Growing Facilities in P.E.I, New Brunswick and Nova Scotia. Under the terms of the agreement, NFP and Urban Barns will enter into a definitive licensing agreement where specific milestones, royalty rates, and technical services will be agreed to no later than August 30th, 2013.
Richard Groome, President of Urban Barns and Director of Strategic Marketing stated, "We are delighted to welcome NFP as our growing partner in Newfoundland with plans to cover the three Canadian Maritime Provinces. Groome added, "The Newfoundland Growing Facility is a step in our national coast-to-coast expansion plan on establishing Growing Facilities in key target markets including Quebec and Ontario."
Stephen W. Bruce, President and CEO of Newfoundland Fresh Produce Inc. said, "We are delighted to become an Urban Barns licensee on the East coast of Canada and bring our fellow Canadians fresh produce grown locally 12 months per year. As a Newfoundlander, it is with great pride and joy that we bring this revolutionary Cubic Farming technology to Newfoundland and Labrador to provide local grown produce of superior freshness never dreamed of before due to remote growing fields. Over 90% of the produce consumed in Newfoundland is brought in via trans-continental road transportation then by ship. With the Urban Barn's growing technology and methods, NFP will be able to supply fresh produce picked the same day, year-round and at a competitive price. This is indeed a major breakthrough in the Newfoundland food supply chain eliminating multiple thousands of "miles-to-market." Bruce added, "We plan to have the initial Growing Facility operational by the fall of 2013 starting with four Cubic Farming machines adding additional machines and new locations throughout the province to supply our customers comprising the food service and hospitality sector in addition to food retail chains."
Based on a study published in 2007 by the Department of Natural Resources of Newfoundland and Labrador, it was estimated that in 2005, less than 3% of the lettuce consumed in the province was locally produced. The same study established that the combined potential for locally-produced vegetables in the province was at over $42 million per year.
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.
About Newfoundland Fresh Produce Inc.
Newfoundland Fresh Produce aims to grow and distribute locally grown, fresh produce year-round in the Atlantic Provinces, starting with Newfoundland and Labrador. Through its exclusive licensing agreement with Urban Barns, Newfoundland Fresh Produce will be able to grow affordable and tasty produces in a secure and controlled indoor environment, providing food security and quality. Restaurants and grocers will be able to offer their customers local fresh produce picked the same day, and this, year-round. Newfoundland Fresh – Locally Grown - Freshness Guaranteed. For more information, please visit NewfoundlandFresh.com
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.
CONTACT: Urban Barns Foods Inc. Dan Meikleham (403)807-8263 firstname.lastname@example.org Richard Groome (514)907-4989 email@example.com Newfoundland Fresh Produce Inc. Stephen W. Bruce (514)970-7355 firstname.lastname@example.org Media Contact: email@example.com www.urbanbarnsfoods.comSource:Urban Barns Foods Inc.