CO2 GRO Inc said its contracted sales target of $1.5 million to $2.5 million is unchanged at the end of 2Q, 2022 as the company has seen rising inbound interest from protected growers around the globe due to positive data from its ongoing technology trials.
In a statement accompanying its second-quarter results, the Toronto-based company said it expects to secure these sales in 4Q 2022 and 1Q 2023 as a number of trials are ending during these quarters.
CO2 GRO said it also expects to be in negotiations for Commercial Technology Purchases and related contract sales with growers after full analyses of their trial results and value accreditation during 4Q 2022 and 1Q 2023.
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As of June 30, 2022, the company reported $1.6 million in cash on hand.
CO2 GRO said its target is to generate positive operating cash flow within the next 12 months with cash proceeds from Commercial Technology Purchases and faster cash realization through export financing.
The company's CEO John Archibald said with a sales pipeline of over 200 million square feet of commercial production space, CO2 GRO's potential for commercial sales was huge.
“Most of these customers are in international markets, allowing us to work with Canada's government export agencies and other private financing options when our customers want multi-year payment plans,” he said.
“Financing multi-year sales will provide us with faster cash and revenue realization and security.”
He added that the company’s current focus was on executing its existing trials to ensure the delivery of the results that growers expected.
“This will enable us to convert these trials into commercials sales and generate the revenue and cash flow growth our shareholders are anticipating,” Archibald said.
“We look forward to a strong finish to 2022 by signing more trials with new customers around the world, and we are excited about the foundation we are laying for rapid growth in 2023 and beyond."
CO2 GRO is a precision ag-tech, clean-tech company with a focus on people, the planet, and prosperity.
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