CO2 GRO Inc (TSX-V:GROW, OTCQB:BLONF) CEO John Archibald told shareholders that the company’s technologies and benefits are resulting in significantly increased grower profitability while also reducing a grower’s ecological footprint.
“I believe our shared vision of CO2 GRO revolutionizing the 600 million-square-foot global protected agriculture industry making it more profitable and sustainable is achievable over time,” wrote Archibald in a letter addressed to CO2 shareholders. "Our CO2 Delivery Solutions and plant Pathogen Perimeter Protection technologies and benefits are proven in scientific and commercial settings improving grower yields by up to 30% and sharply reducing micro-pathogen growth such as E.coli and powdery mildew."
Archibald acknowledged the hardships of the global pandemic which restricted the company’s ability to travel and meet with potential customers and international marketing partners. Meanwhile, the protected agriculture market was also hit with severe labor shortages, as the horticultural industry was deemed non-essential.
READ: CO2 GRO Inc. announces biggest CO2 Delivery Solutions deal yet with commercial installation sale to Hidroexpo
CO2 GRO pivoted to a virtual organization making extensive use of readily available technology to facilitate operations, scientific research, research and development, and sales and marketing using local sales representatives and local contractors to install CO2 Delivery Solutions systems, he wrote.
“Despite the COVID challenges, in 2020 we succeeded in engaging three additional sales and marketing partners in Israel (Greenmist Ltd), South Africa (Pharmacrop Pty Inc), and the UK, Belgium, and the Netherlands (Rika Tech Ltd). In addition, we successfully implemented 26 commercial feasibilities in the hemp, lettuce, cannabis, rose, leafy greens, pepper, and strawberry markets,” Archibald wrote.
In 2020, CO2 completed a C$1.38 million non-brokered private placement. Ospraie Ag Sciences LLC — a leading global agricultural technology fund was the largest participant — now owning 11.8% of CO2 GRO's outstanding 84.5 million shares. Tom Wiltrout, a principal of Ospraie, joined CO2 GRO's board.
Archibald wrote: “Sales activity improved in 2020 with 18 CO2 Delivery Solutions systems being sold. 15 were at Missouri-based Linn County Seed and Flower Co-op, and Sacred Seeds Hemp Farms LLC.”
“The other three systems were to Canadian licensed cultivators. Sales to cannabis growers are expected to continue given the very large increases in value CO2 delivery solutions deliver to these growers. We look forward to sales to growers of non-cannabis crops in 2021 and beyond along with additional sales to cannabis growers.”
At CO2 GRO, environmental, social and governance (ESG) is a strategic element of value creation and sustainability with ESG platforms forming part of CO2 GRO's corporate value proposition, the CEO said.
Archibald told the investors that the company had established a number of business development objectives for 2021. A key focus was increased marketing in North America and internationally to highlight our CO2 Delivery Solutions and Pathogen Perimeter Protection in the protected agriculture industry.
“Specifically, objectives are increasing the number of international marketing partners, the number of commercial feasibilities, penetration of larger grow facilities, the number of direct sales, and conversion of commercial feasibilities to sales growing purchase orders and revenues,” he said.
“To date in 2021, we have performed well relative to these objectives. CO2 GRO has signed 16 commercial feasibilities. The size of the facilities disclosed in news releases excluding Canadian licensed cultivators and those that have requested anonymity range from 328,000 square feet at Plant Advanced Technologies to 861,000 square feet at the UK-based La Serra Ltd.”
Efforts to engage additional sales and marketing partners in priority markets of Mexico, Spain, and Japan have yielded good results initially, the company CEO added.
Contact Ritika at ritika@proactiveinvestors.com