CO2 GRO Inc (CVE:GROW) (OTCQB:BLONF) (FRA:4021) has entered into an automatically renewable one-year agreement with Rancho Nexo (RanchoNexo) to market and support CO2 Delivery Solutions technology in Mexico's protected agriculture market.
RanchoNexo is a corporation of both Ontario and Mexico with Mexican associates carrying on the business of promoting largely Canadian technologies in that Latin American market, according to a statement.
CO2 GRO said RanchoNexo has the capabilities to sell as well as assist in the engineering, installation, and commissioning of its CO2 Delivery Solutions systems.
READ: CO2 GRO anticipates ‘significant sales growth’ in the third and fourth quarters of 2021
Both companies will account for all project revenues and costs to deliver each project including external engineering, contracting, procurement of products, site commissioning, and related travel. Any net project revenue will be shared at an agreed-upon ratio.
CO2 GRO said the Mexican protected agriculture market includes hoop, shade and tunnel grow houses as well as greenhouses, all of which can easily employ CO2 Delivery Solutions technology to increase plant yields by up to 30% and profits by up to 100%. Mexico is the second-ranked protected agriculture market globally after China.
The company said all of Mexico's protected grow facilities can use its misting technology regardless of heat venting requirements and facility porosity.
Aaron Archibald, vice president of sales and strategic alliances for CO2 GRO, noted that the company established its Mexican connections through the Canadian Technology Accelerator cohort program which focused on the country’s agriculture-tech industry.
"Our participation in the program introduced us to a number of possible partners as well as growers and grower associations,” Archibald said.
“After extensive discussions we agreed to partner with RanchoNexo. The opportunity to work with a 20 year veteran Ag tech professional like Matt Grant, his Mexico partner Jose Moreno and local professional team is an especially good fit for us as we enter Mexico's protected agriculture market. At 5.8 billion square feet it represents an enormous opportunity to market CO2 Delivery Solution to protected agriculture growers, all of whom we believe can realize substantial benefits from employing our unique and patent protected technology."
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