VANCOUVER, British Columbia, March 8, 2011 /PRNewswire/ -- Urban Barns Foods Inc. (OTC Bulletin Board: URBF) ("Company" or "Urban Barns"), an authority on sustainable development of fresh fruits and vegetables, has acquired a 100% ownership interest in Non Industrial Manufacturing Inc. (NIM), a Canadian Manufacturer of Vertical Farming Equipment. The terms and provisions of the acquisition of NIM provided that Urban Barns acquire from the shareholders of NIM 100% of the total issued and outstanding class A shares of common stock of NIM in exchange for the issuance to the shareholders of NIM an aggregate 2,500,000 shares of restricted Class B common stock of Urban Barns, thus resulting in NIM becoming a wholly-owned subsidiary of Urban Barns. In one year from the date of issuance, effective March 8, 2012, each Class B share of common stock of Urban Barns will convert to twenty Class A shares of common stock of Urban Barns.
Explaining the activities that led to this acquisition, Mr. Jacob Benne, CEO of Urban Barns stated that "Over the past year and a half we evaluated and tested several vertical growing systems. Each of the systems we tested came up short in one area or another including maintenance, labor, and energy costs. Most notably, their ability to fulfill large scale commercial production of food was lacking. Conversely, we are very pleased with the proprietary growing equipment developed by NIM which is by far more efficient production output over any of the equipment we tested. The innovative growing machine is designed to be highly scalable and will be well suited for large scale commercial production of fruits and vegetables in multiple major urban locations."
Mr. Dan Meikleham, Chairman of Urban Barns stated, "With this acquisition, Urban Barns through its wholly-owned subsidiary NIM, now owns the intellectual property. We will use this acquisition to negotiate concessions from local Governments for land, buildings with leasehold improvement and access to a local work force to create new jobs in communities close to our urban barns. This will lead to a safe and secure supply of locally grown food for their urban communities."
About Urban Barns Foods Inc.:
Urban Barns uses proprietary equipment to produce affordable fruits and 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". Urban Barns and Urbanbarnsfoods.com are registered trademarks and the 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 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.
SOURCE Urban Barns Foods Inc.