Better Than Expected Results Driven By Inflation?

Good morning readers, financial results for the first quarter of 2022, improved energy efficiency, a new vertical farming conference and much more!

Here are the top 10 controlled environment agriculture news articles of this week:

1- Local Bounti Announces First Quarter 2022 Financial Results

• Sales of $282 thousand in the first quarter of 2022, as compared to $57 thousand in the prior-year period. Pete's stand-alone business produced sales of $5.9 million in the first quarter of 2022.
• Gross profit of $48 thousand in the first quarter of 2022, representing a gross margin of 17%; adjusted gross margin,1?excluding depreciation, was consistent with the prior-year period at approximately 39%. The lower gross margin compared to the fourth quarter of 2021 reflects a temporary increase in research and development at Local Bounti's Montana facility associated with focused yield improvement activities in support of Pete's acquisition and other commercial facility plans, including the pending opening of the new Georgia facility. The Company continues to achieve new advancements with improved crop cycles and yield.
• Net loss of $25.8 million in the first quarter of 2022, including approximately $3.9 million of expenses associated with the Company's acquisition of Pete's, as well as $11.0 million in stock-based compensation, $1.6 million in interest expense, $0.5 million of depreciation and $0.2 in other; net loss was $9.4 million in the prior-year period.
• Adjusted EBITDA1?loss of $8.5 million in the first quarter of 2022, as compared to a loss of $3.9 million in the prior-year period.

2- Agrify Announces Record Revenue Results for First Quarter 2022

• Revenue was $26.0 million for the first quarter, an increase of 271% compared to $7.0 million for the prior-year period.
• Gross profit for the first quarter totalled $4.2 million, or 16.0% of revenue, compared to $(540) thousand, or (7.7)% of revenue, in the prior-year period.
• Operating expenses were $13.9 million for the first quarter, compared to $6.0 million in the prior-year period. The comparative increase in the first-quarter operating expenses is largely attributable to overall growth in the scale of the Company’s core business and recent acquisitions, increases in amortization expense associated with the intangible assets identified as part of the Company’s recently completed acquisitions, direct acquisition-related costs, an investment banker termination fee, and restructuring charges.
• Net loss for the first quarter was $8.9 million, or $0.36 per diluted share, compared to a net loss of $3.8 million, or $0.33 per diluted share, in the prior-year period.
• Cash flow used in operating activities was $34.2 million for the first quarter, compared to $7.3 million in the prior-year period. First-quarter 2022 cash flows used in operating activities related to the increase in inventory associated with the current and future construction of the Company’s VFUs, current quarter operating performance, first quarter renewals of insurance policies, and the capitalization of debt issuance costs.
• Adjusted EBITDA (a non-GAAP financial measure) was a loss of $6.1 million in the first quarter (see “Non-GAAP Financial Measures” below for a further discussion of this non-GAAP term, including a reconciliation to the most comparable GAAP measure), compared to a loss of $4.2 million in the prior-year period.

3- Gotham Greens to build high-tech indoor farm in Monroe

Gotham Greens, an indoor farming pioneer, will invest $34 million and create 45 new jobs at the company's first Southeast greenhouse facility in Monroe.

The Development Authority of Walton County announced the new project Tuesday. The new Monroe location is part of Gotham Greens' plans to double the size of its greenhouse capacity from 600,000 to more than 1.2 million square feet this year and expand into new regions of the U.S.

"Gotham Greens is incredibly excited to further expand our greenhouse operations across the country, including to the Southeast for the very first time," said Viraj Puri, co-founder and CEO of Gotham Greens. "Building on the continued growth and momentum that Gotham Greens has sustained over the past several years, we are proud to bring our national brand of sustainably grown salad greens and herbs to Monroe and throughout Georgia."

4- CubicFarm says it uses 50+% less energy than average vertical farms

CubicFarm Systems Corp., a leading local chain agricultural technology company, today announced new data that demonstrates 54% to 62% less energy is used in a CubicFarm System module compared to results reported by other vertical farms surveyed globally.

With electricity being the number one input cost in vertical farming, this is a significant advantage to customers using the CubicFarm System technology for indoor growing.

The Company initiated new data collection to effectively measure energy usage in the CubicFarm System. Patented Crop Motion Technology? moves plants to one layer of LED grow lights, unlike typical rack and stack layouts of other vertical farms that use multiple layers of energy-intensive LEDs. Findings include:

• 17.6 kilowatt-hours (“kWh”) per pound in typical vertical farms2
• 8 kWh/pound in a CubicFarm System module (54% less than typical vertical farms)
• 6.67 kWh/pound in a CubicFarms FreshHub System (62% less than typical vertical farms)

5- UK Government Acknowledges Vital Role Vertical Farming Will Have

Intelligent Growth Solutions, which manufactures vertical farming solutions, was one of three technology businesses invited to participate in this year’s event, which was attended by Prime Minister Boris Johnson and fellow ministers.

While at the showcase, Andrew Lloyd used the opportunity to discuss some of the major challenges affecting sustainable agriculture and the adoption of vertical farming. These included:

1. Encourage greater investment in the indoor growing industry:?A discount on the tax of renewable electricity used for growing food to help stimulate investment in and use of vertical farms, to support net-zero targets while levelling up the support for vertical farmers and encouraging wider adoption.
2. Evolve outdated planning processes to speed up implementation:?Amending the planning legislation for building vertical farms, which would change the use class from a ‘building’ to a ‘growing machine’, to reduce the time and cost associated with gaining planning approval.
3. Take full advantage of brownfield and vacant land:?Encouraging the use of brownfields for vertical farming locations, to bring farming and fresh, affordable, nutritious food into the centre of the urban communities where it is needed most.

6- Kalera Appoints James Leighton as President and Chief Executive Officer

Kalera AS (Euronext Growth Oslo: KAL, Bloomberg: KSLLF), one of the preeminent leafy green vertical farming companies and a leader in plant science for producing high-quality produce in controlled environments, announced today that it has named James Leighton as President and Chief Executive Officer. Leighton is an accomplished executive with a strong reputation within the consumer-packaged goods and food industries.

“Jim is a true Level 5 leader with a deep and varied background in leading companies in the food and CPG sectors. His focus on people and his disciplined approach to operations and execution will serve Kalera and its shareholders well in the years to come,” said Curtis McWilliams, the current Interim CEO and the incoming Chairman of Kalera’s Board of Directors following its announced merger with Agrico Acquisition Corp.

7- Woolworths partners with startup InvertiGro to launch Australia’s first in-store vertical farm

Customers at a flagship Woolworths (ASX: WOW) inner-city store in Sydney will now be able to see their herbs growing in the fruit and vegetable section as part of a novel partnership between the leading grocery retailer and AgTech start-up InvertiGro.

The Sydney-based business is on a mission to feed the world in a smarter way,?and from this week onwards will showcase its vertical indoor farming solution at Woolworth’s Metro Park Sydney Village store.

Under “the Urban Garden” branding, InvertiGro’s in-store InvertiWall will demonstrate vertical farming in action, with commonly-used herbs basil, mint, coriander and parsley available for sale at $3 per bunch.

8- Smallhold Opens First Certified Organic Mushroom Farm in Los Angeles County

California will be the new home of the agtech startup, introducing the wonder of mushrooms to more people. Mushrooms will start to hit retailer shelves in early May across Southern California, including Los Angeles, Orange County, and San Diego metropolitan areas.

9- Green Bronx Machine Is Proud To Announce Partnership With NYC Department of Housing Preservation

The New York City Department of Housing Preservation and Development (HPD) joins NYC Housing Authority (NYCHA) and the NYC Housing Development Corporation (HDC) today to announce plans to build approximately 195 deeply affordable homes for seniors in the neighbourhood of Morrisania Bronx. The Sol on Park development will give rise to a 15-story mixed-use building paired with a new community health centre, a nutrition education facility, and a career-training space accessible to residents and the community at large.

10- iGrow News Is Pleased To Be Once Again Partners of the GVF's show

With the remarkable success and responsiveness of our first Global Vertical Farming Expo–GVF2021 (Virtual Connect) last year, we present you its successor, a more dynamic and trailblazing of its kind—-2nd Global Vertical Farming Show–GVF2022 27th|28th July 2022–Now in Conrad, Dubai!

We picked Dubai as the GVF2022 destination due to its geographic significance in the Middle East. Dubai, one of the UAE’s six emirates, has historically relied on food imports and has placed an emphasis on food security in recent years.

The UAE has developed a National Food Security Strategy with the goal of making the country the best in the world in terms of food security by 2051—including vertical farming as a possible alternative.

The entire Middle East is equipped with every possible invention required to scale up this new innovative vertical farming industry—which will aid international companies in finding the right channel partner and establishing long term commercial relationships.

Aside from establishing right channel partners, there are several prospects for commercial and long-term networking platforms.

Register now?here.