CO2 GRO Inc V.GROW

Feasibility Project with a Canadian Cannabis MicroCultivator

[Brisco24]

https://stockhouse.com/news/press-releases/2020/05/13/co2-gro-inc-announces-a-commercial-feasibility-project-with-a-canadian-cannabis

TORONTO, ON / ACCESSWIRE / May 13, 2020 /Toronto based CO2 GRO Inc. ("GROW") (TSXV:GROW)(OTCQB:BLONF)(Frankfurt:4021) is pleased to announce that it will install a CO2 Delivery Solutions™ VCO2 model with a Canadian cannabis micro-cultivator ("Customer") for a Commercial Feasibility.

The Customer will evaluate the growth effects of CO2 Delivery Solutions™ on cannabis for up to 12 months focusing on grow cycle time, bud production and CO2 gas use. Upon completion of the Feasibility, Customer has the option to purchase the system for all their grow rooms.

The Canadian Micro-Cultivation Market under the Cannabis Act

To date, Health Canada under the Cannabis Act has issued 26 licenses to Canadian cannabis micro-cultivators out of 365 licenses granted. Their cultivation areas cannot exceed 200 square meters or 2,150 square feet. While small, these micro-growers focus on high end craft premium cannabis plants.

Micro-cultivators are categorized as "Regular" to those who want to grow and harvest material from those plants, "Nursery" to authorize the growing of cannabis plants for starting material, namely seeds and clones, and "Industrial Hemp"for growing industrial hemp plants. GROW intends to work with growers in all three categories to install its highly efficient smaller VCO2 model which can service the aqueous CO2 misting needs of grow rooms up to 10,000 square feet.

Other Sub 10,000 Square Foot Grow Facilities

Smaller hoop houses, shade houses and tunnel designs require extractor fans that pull hot air out of the houses or have open venting roofs or sides for air to flow through. This makes CO2 gassing uneconomical and impractical. They typically have 2,000 to 10,000 square foot grow areas that are ideal for our smaller VCO2 model to deliver aqueous CO2 to those plants. GROW's recently announced fifteen VCO2 model installations at hemp greenhouses in Missouri are examples of these types of micro-grow facilities.

Some larger cannabis grow facilities are segmented into sub 10,000 square foot individual grow rooms. GROW's smaller VCO2 model can be individually installed in each of these grow rooms. The VCO2 model also provides customers the flexibility to install CO2 Delivery Solutions™ in a room-by-room phased plan.

According to John Archibald, GROW's CEO, "We are excited to be working with our first micro-cultivator customer in Canada. Our new smaller VCO2 model is designed to serve the micro-cultivation market, which we have identified as an important vertical for our technology. It is affordable, easily scalable and provides a much higher ROI for customers compared to standard CO2 gassing which can be very expensive, especially for smaller facilities."