CO2 GRO Inc has provided a detailed business development update for its current third quarter, with the company expecting to end the year with 2023 commercial sales contracts totaling between $2 million and $2.5 million based on current Technology Adaptation Projects (TAPs) due to conclude in 4Q 2023.
A TAP is the opportunity for a grower to analyze the benefits of the technology and for CO2 GRO to adapt the technology to the grower's unique facility, with the grower typically paying for the cost of the project, according to the company.
The agricultural tech firm also said its combined sales opportunities with growers currently engaged in TAPs for 2023 and continuing into 2024 is $18 million, which includes only the initial order size from its large EU-based customer.
"Over the past 24 months, we have made tremendous progress in building our business and are now able to accelerate sales across all our target markets," CO2 GRO CEO John Archibald said in a statement.
"We are encouraged by the progress we have made; our customers are excited by the improvements we have delivered and the results they are seeing; and we look forward to a strong final stretch of the 2023 season and ramping up into 2024," he added.
CO2 GRO noted that it expects new 2024 TAPs with those who have shown serious interest to translate into a combined sales opportunity of $65 million.
The company added that its total combined sales opportunities with both serious customers and those whom it would describe as strong leads is approximately $330 million.
Furthermore, CO2 GRO stated that it expects sales to rapidly increase through 2024 by transitioning a significant portion of the $18 million of current TAP customers to commercial customers, and a significant portion of the $65 million of 2024 TAP customers to commercial customers in 2025, as the company believes its new Pay-for-Use (PFU) commercial model is being widely accepted by growers.
CO2 GRO is an innovative precision agricultural tech company focused on delivering CO2 Delivery Solutions to the global protected agricultural sector. Its patented technology helps growers increase crop yields and profits by enhancing plant growth, resilience, quality and water-use efficiency through aqueous CO2 misting.
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