letter from adm TORONTO, ON / ACCESSWIRE / November 2, 2021 / Toronto based CO2 GRO Inc. ("GROW") (TSXV:GROW)(OTCQB:BLONF)(Frankfurt:4021) is pleased to present John Archibald's CEO Letter to Shareholders.
Dear Fellow Shareholders,
On behalf of the management team and Board of Directors, I would like to thank you for being shareholders of CO2 GRO Inc. As a management team and Board of Directors, we are fully invested alongside all of you, collectively owning approximately 20% of the company's shares. 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. Our CO2 Delivery Solutions™ and plant Pathogen Perimeter Protection TM 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 andpowdery mildew. Results show significantly increased grower profitability while at the same time reducing a grower's ecological footprint. We are proud of our business development achievements to date while recognizing more can be done to deliver shareholder value while responsibly managing the earth's assets (water, air, earth, etc.).
2020 was a challenging year due to the global pandemic which restricted our ability to travel and meet with potential customers and our international marketing partners. Further, the protected agriculture market was hit with severe labor shortages while in tandem, the horticultural industry was deemed non-essential. 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 while also protecting our employees, clients and family from increased social interactions.
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 Limited). In addition, in we successfully implemented 26 commercial feasibilities in the hemp, lettuce, Cannabis , rose, leafy greens, pepper and strawberry markets. The significant distribution of business across these numerous plant types provides confidence that there is a broad worldwide market for CO2 Delivery Solutions™ and Pathogen Perimeter Protection TM .
While CO2 GRO experienced limited COVID-19 direct effects, the impact on potential customers was great: business interruptions, production rescheduling and delays, unpredictable labour and refocusing of their business lines which resulted in some commercial feasibilities being significantly delayed post announcements. While this was unfortunate, in 2020 and to date in 2021, CO2 GRO experienced zero cancellations due to a lack of results. Our CO2 Delivery Solutions™ and Pathogen Perimeter Protection TM technology has delivered results and achieved return to growers. This gives us great confidence the growth potential for CO2 GRO is significant over the coming years.
In 2020, we completed a CDN$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 84.5M shares. In addition, Tom Wiltrout, a principal of Ospraie Ag Sciences LLC., joined CO2 GRO's Board. We are very grateful for Osparie's and Tom's support and look forward to a very long relationship which we believe will benefit all of CO2 GRO shareholders.
Sales activity improved in 2020 with 18 CO2 Delivery Solutions™ systems being sold. 15 were at Missouri based Linn County Seed & Flower Co-op ("Linn County") 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™ delivers 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. CO2 GRO maintains and supports diversity, equality and inclusiveness in our workplace as well as promoting and maintaining a safe and healthy workplace. CO2 GRO's Executive and Board are committed to diversity and inclusion in its role in delivering enhanced shareholder value, short and long term.
CO2 GRO is helping growers reduce their ecological and carbon footprint. CO2 Delivery Solutions™ can significantly reduce CO 2 gas used in sealed greenhouses that CO 2 gas while maintaining plant growth of up to 95%. In protected ag facilities, CO2 Delivery Solutions™ deliver a targeted aqueous solution directly to the plant canopy resulting in over 90% of the CO 2 being absorbed by the plants. The plants in turn process the CO 2 releasing oxygen during photosynthesis.
CO2 GRO helps to shorten the food chain ecological footprint. Locally grown food minimizes GHG emissions by eliminating long distance supply chains. In addition to shortening food supply chains, it reduces food waste and lowers landfill methane emissions by minimizing spoilage.
The Path Forward 2021 and Beyond
For 2021, we established a number of business development objectives. A key focus was increased marketing in North America and internationally to highlight our CO2 Delivery Solutions™ and Pathogen Perimeter Protection TM 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.
To date in 2021 we have performed well relative to these objectives. CO2 GRO has signed 16 commercial feasibilities to date in 2021. 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. tomato greenhouse. A recent commercial feasibility with a European based grower who has 100 million square feet under cultivation will be implemented shortly.
Efforts to engage additional sales and marketing partners in priority markets of Mexico, Spain and Japan have yielded good results initially. To date, we have engaged marketing partners in Mexico and Spain. We are in discussion with potential sales and marketing partners in Japan and will report when that has been achieved.
CO2 GRO continues to diversify our crop mix in 2021 with commercial feasibilities underway or signed in lettuce, Cannabis , leafy greens, peppers, tomatoes, floriculture, orchids, macadamia tree seedlings, citrus tree seedlings and strawberries.
2021 sales to date are very encouraging at a total of nine. Seven were achieved without commercial feasibilities reflecting CO2 GRO's increased market profile. The eighth was the conversion of a commercial feasibility to a sale three months prior to completion and the ninth was the conversion of the Hidroexpo S.A de C.V commercial feasibility to a sale agreement. This is the first sale to a significant vegetable grower, which is a milestone for CO2 GRO. We will maintain our focus on converting our ongoing commercial feasibilities to sales, adding commercial feasibilities with large growers and obtaining additional direct sales not requiring commercial feasibilities.
In closing, on behalf of the management team and Board of Directors I would like to thank our shareholders for their continued support of CO2 GRO Inc. While it has been a challenging 18 months since the pandemic's onset, we continue to work very hard at building shareholder value and we look forward to keeping all shareholders informed of CO2 GRO's successes.
Sincerely
