MIRABEL, QC / ACCESSWIRE / March 17, 2016 / Urban Barns Foods Inc. (URBF) ("Urban Barns" or "the Company"), a vertical farming company that produces Kosher-certified leafy vegetables using its proprietary Cubic FarmingTM technology, is pleased to announce its results for the quarter ended January 31, 2016.

Revenue from the sales of Urban Barns' products for the three months ended January 31, 2016 was $29,357 as compared to $24,084 for the same period in 2015. Despite the slowdown following the Christmas holidays, the Company continues to experience an increase in customer demand for all of its products, including its Kosher-certified lettuce and basil. Similarly, production is increasing steadily at the Company's first growing facility in Mirabel, Québec. As the Company's proprietary Cubic FarmingTM technology and processes continued to improve during the second quarter, the Company began a program of increasing the machine cycles, which will allow it to increase production by up to 40% at minimum additional cost.

Operating expenses for the Company were $108,031 for the three months ended January 31, 2016, compared to $363,614 for the corresponding period last year, a decline of $255,583. This significant decrease is attributable to the ongoing focus of management to reduce essential expenditures to be more in line with current operations, and to eliminate all non-essential cost items.

Net income for the three months ended January 31, 2016 was $1,008,580 or $0.04 per Class A share as compared to a net loss of $346,514 or $0.02 per Class A share in the corresponding period in 2015.

During the second quarter, the Company signed a license agreement with Bevo Agro Inc. which allows Bevo Agro to lease or sell Urban Barns' Cubic FarmingTMmachines to third parties around the globe. This is a mutually beneficial agreement that is expected to provide the Company with ongoing licensing royalties along with the ability to collaborate strategically with Bevo Agro and its President, Mr. Jack Benne. Mr. Benne was the individual who designed and built the first Cubic FarmingTM machine.

On February 16, 2016, the Company completed a 1 for 20 reverse split of the Class A shares and effected a corresponding decrease in its authorized capital. As a result of the reverse split, the Company's authorized capital decreased from 500,000,000 Class A shares to 25,000,000, and its issued and outstanding Class A shares decreased from 499,948,520 to approximately 24,997,426, with each fractional share being rounded up to the nearest whole share.

On February 26, 2016, the holders of a majority of the Company's issued and outstanding stock approved an increase in the Company's authorized capital from 25,000,000 Class A shares and 25,000,000 Class B shares to 350,000,000 Class A shares and 25,000,000 Class B shares (the "Authorized Capital Increase"). The purpose of the Authorized Capital Increase was to reorganize the Company's capital structure in connection with the 1 for 20 reverse split, which management believes will better position the Company to attract financing.

Recently, the Company secured additional financing by issuing convertible notes to two investors. The proceeds will be used to complete the Generation IV growing machine prototype, and to replace certain barn equipment currently being leased on a monthly basis.

Mr. Robyn Jackson, President and CEO of Urban Barns, commented, "I am very pleased with the progress being made on all fronts and am confident in our ability to meet our goals and to retain our leadership in the controlled environment agriculture market."

About Urban Barns Foods Inc.

Urban Barns uses patent pending and proprietary growing equipment to produce premium quality, chemical-free and non-GMO leafy vegetables in a secure and controlled indoor environment, including lettuce and basil that is Kosher-certified.

Forward-Looking Statements

Except for historical information contained herein, the matters set forth above may include forward-looking statements that involve certain risks and uncertainties. Words such as "may", "could", "anticipate", "believe", "estimate", "expect", "intend", "plan", and similar expressions are used to identify forward-looking statements. These 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. Urban Barns does not undertake any obligation to update any forward-looking statements and cautions investors to consider all other risks and uncertainties, including those disclosed in Urban Barns' filings with the United States Securities and Exchange Commission.

For further information, contact:

Urban Barns Foods Inc.
Robyn Jackson, President and CEO
rjackson@urbanbarns.com
Tel: +1 (403) 831-6720
www.urbanbarns.net

SOURCE: Urban Barns Foods Inc.