CO2 GRO Inc V.GROW

New Press Release - CO2 GRO INC. PROVIDES UPDATE ON PRIVATE PLACEMENT OF UNSECURED CONVERTIBLE DEBENTURES

/NOT FOR DISTRIBUTION TO UNITED STATES NEWSWIRE SERVICES OR FOR DISSEMINATION IN THE UNITED STATES/TORONTO, Jan. 8, 2024 /CNW/ - Toronto based CO2 GRO Inc. ("CO2 GRO" or the "Company") (TSXV: GROW), (OTCQB: BLONF), (Frankfurt: 4021) is pleased to announce that, further to its press release on...read article.

[Longholder99]

Cash for inventory to be able to respond to bigger contracts IMO.  Good sign.  Gotta have it to make it. 

[spck11]

It's a pretty terrible deal with a ton of dilution, but rhe price of the convert and warrants are far ahead of today's prices which is nice. Surprised they did 2.5M though, seems very high vs their burn rate. Hopefully that means they anticipate needing a big inventory spend soon.

[Longholder99]

I don't think burn rate is their problem.  I remind you that the BOD is taking no salary as they work toward profitability.  They are about to embark on large projects with large infrastructure needs.  Cost of Goods Sold on a big money contract is where I think the 2.5M is going.  The profits and causal raise in SP will negate any dilution that may come from a lender opting

[spck11]

Assuming they get above the warrant conversion price my earlier math was just over 40M additional shares which is a quite a lot.  If they put that money to good use and convert it to high GM sales then that's awesome, but if the next 3 years are similar to the last 3 years the company will be bankrupt 100%.