June 12, 2023

By Lynda Kiernan-Stone, Global AgInvesting Media

GoodLeaf Farms, the first and largest commercial indoor vertical farming company in Canada, has secured $78 million in debt financing, welcoming CIBC and Farm Credit Canada (FCC) as two of its newest lenders. 

Concurrently, the company announced it has gained a new equity investment from co-investors Export Development Canada and Power Sustainable Lios – a specialized agrifood investor with a focus on fostering a more sustainable and resilient food system –  commenting that the investment would add greater strategic capabilities to its ownership group. 

“We are excited to partner with CIBC, Farm Credit Canada and Export Development Canada as we continue to expand our operations and deepen our leadership position in vertical farming,” said Barry Murchie, CEO, GoodLeaf. “We look forward to working closely with these leading institutions in addressing the challenges faced by Canada’s current agricultural system.”

“The traditional sourcing of leafy greens in Canada from California and Arizona is a problem now, and will continue to be a problem,” said Murchie in December 2022. “It requires significant transportation miles, with each passing mile on the road the plants lose nutrients, and there is an increased risk of food spoilage and waste.”

Founded in Halifax in 2011, GoodLeaf Farms uses innovative hydroponic technologies, ebb-and-flood watering, specialized LED lighting that is engineered to mimic the light spectrum of the spring sun, and multi-level vertical farming to create controlled and efficient indoor farms able to sustainably grow crops of microgreens and baby greens that are free of pesticides, herbicides, and fungicides, on a year-round basis. 

These microgreens are available through most of the leading retailers in Ontario, being sold in more than 600 locations including Loblaws, Sobeys, Metro, Zehrs, Real Canadian Superstore, Foodland, Longos, Valu-Mart, Your Independent Grocer, Fortinos, Whole Foods, Voilà and other independent grocers and restaurants across the province.

The company noted that the funding gained through this debt financing and equity investment will support the acceleration of its commercial growth and the continued expansion of its network of innovative farms across Canada. 

This expansion is already well underway, with two new farms in Calgary and Montreal opening later this year that will add 200,000 square feet of production to GoodLeaf’s capacity, with each farm able to produce approximately 2 million pounds of fresh greens each year. 

The completion of these farms will serve to further reinforce GoodLeaf’s leadership position in Canada, making it the only vertical farming company in the country to produce pesticide-free, nutrient-dense baby greens and microgreens from coast-to-coast. 

“We are thrilled to support GoodLeaf through its continued growth,” said Tim Robbins, market vice-president, commercial banking, CIBC. “The company’s experienced team is developing high-quality products for Canadians in a sustainable and responsible manner, and we are proud to be involved in their journey ahead.”

Fred Oickle, senior relationship manager, Farm Credit Canada, added, “FCC is pleased to be a part of GoodLeaf expanding its operations, allowing it to provide even more nutritious food to Canadians.”

“Their growth is a tremendous example of the innovation that is driving the future of food production in Canada.”

~ Lynda Kiernan-Stone is editor in chief with GAI Media, and is managing editor and daily contributor for Global AgInvesting’s AgInvesting Weekly News and  Agtech Intel News, as well as HighQuest Group’s Unconventional Ag. She can be reached at lkiernan-stone@globalaginvesting.com.

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