- CO2 GRO Inc. reports a cash reserve of $430,000 as of June 30, 2023, and additional receivables of over $250,000.
- The company has secured financing for its Pay-for-Use (PFU) contracts, totaling $1.3M in the first half of 2023.
- CO2 GRO expects to end 2023 with commercial sales contracts ranging from $2M to $2.5M.
- The company’s technology aims to increase crop yields by 10-30%, and it has been successfully tested in various Technology Adaptation Projects (TAPs).
CO2 GRO Inc. (TSXV: GROW)(OTCQB: BLONF)(Frankfurt: 4021) has released a comprehensive Business Development Update for Q2 2023, providing insights into its financial performance, contract acquisitions, and technological advancements.
As of June 30, 2023, the company reported a cash reserve of $430,000. Additionally, it has collected over $250,000 in receivables since that date. The company also announced that it has secured financing for its Pay-for-Use (PFU) contracts with a Canadian greenhouse grower, which will be recorded as Q3 2023 revenue. The financing was arranged with a Canadian financial entity, allowing the company to receive cash upfront while maintaining a long-term recurring revenue stream.
CO2 GRO Inc. has secured two PFU contracts in the first half of 2023, totaling $1.3 million. The first contract was worth approximately $500,000 with a significant Canadian greenhouse grower. The second contract, valued at $800,000, was with El Salvador-based Hidroexpo, bringing their total sales contracts to $1 million.
The company expects to conclude 2023 with commercial sales contracts totaling between $2 million to $2.5 million. These projections are based on the current Technology Adaptation Projects (TAPs) set to conclude in Q4 2023. The company also revealed that its combined sales opportunities for 2023 and 2024 could reach up to $18 million.
CO2 GRO focuses on increasing production in fruiting crops by about 2-4 kg/m^2 annually, representing a 10-30% yield increase depending on the baseline production. The company has successfully completed various TAPs, including projects with Hidroexpo in El Salvador and Cucumber Man in Alberta. These projects have shown promising results, such as increased fruit production and disease resistance.
CO2 GRO Inc. is optimistic about its growth prospects, expecting a solid finish to the 2023 season and a ramp-up into 2024. The company has developed a new Control System and a Chain-Link Optimizer concept to ensure consistent results in all its projects. “Our business fundamentals are the strongest they have ever been,” said Aaron Archibald, Vice-President Sales at CO2 GRO Inc.
The company will continue to update stakeholders on its business plan and opportunities while advancing its unique technology globally.