October 15, 2018 (Source) — Toronto based CO2 GRO Inc. (“GROW” or the “Company”) (TSX-V: GROW, OTCQB: BLONF) is pleased to announce that long term shareholders, holders of 6,214,035, $0.20 warrants with an expiry date of October 12, 2018, have exercised the warrants, raising proceeds of $1.24 million.
The use of proceeds will be employed to accelerate the Company’s business plan on its CO2 Foliar Spray technology roll-out in California, Colorado, Florida and Michigan, to initiate planned trials and commercial installations and for general corporate purposes. GROW’s current annual burn rate is approximately $300,000.00 following the engagement of a project engineer and a bioscientist. The Company believes it is on track to realize first revenues in Q4 2018.
John Archibald, CEO of GROW commented, “We are very pleased with the exercise by long term shareholders of warrants generating proceeds of over $1.2 million for GROW. The vision of the long term shareholders is aligned with those of senior management who own approximately 30% of the shares outstanding. We feel it is endorsement of our CO2 Foliar Spray technology and its global potential. The use of proceeds will be employed to advance the Company’s business plan, rolling out trials and commercial installations in high value markets in the United States and Canada, all activities we believe will accrete to long term shareholder value.”
Capitalization Table Post Warrant Exercise
After the exercise of the above-noted warrants, the Company has the following securities outstanding:
About CO2 GRO Inc.
GROW’s mission is to accelerate all indoor and outdoor value plant growth naturally, safely, and economically using its patented advanced CO2 foliar technologies. GROW’s global target plant markets are retail food at $8 trillion per year (Plunkett Mar 2017), retail non-food plants at an estimated $1 trillion per year and legal retail cannabis that may reach $50 billion per year by 2022 (Bay St Analyst estimates).
GROW’s CO2 technologies are commercially proven, scalable and easily adopted into existing irrigation systems. GROW’s proven crop yield enhancements and revenue model are compelling for growers and Agri-industrial partners.
GROW’s sole focus is working with its plant grower and Agri-industrial partners in proving and adopting its CO2 technologies for specific growers’ plant yield needs.
The CO2 technologies work by transferring CO2 gas into water and foliar spraying across the entire plant leaf surface area, which is a semi permeable membrane. The dissolved concentrated CO2 then penetrates a leaf’s surface area naturally like nicotine naturally dissolves through human skin from a nicotine patch.
Foliar spraying natural nutrients and chemicals on plant leaves has been used for over 60 years by millions of indoor and outdoor plant growers. To date, outdoor growers have not had any way to enhance plant CO2 gas uptake for faster growth.
Indoor use of CO2 gassing has enhanced plant yields for over 60 years. However, over 50% of the CO2 gas is typically lost through ventilation. Current greenhouse CO2 gassing levels of up to 1500 PPM are also not ideal for worker health and safety. GROW’s safer dissolved CO2 foliar spray can be used by indoor and outdoor plant growers with minimal CO2 gas lost.
Forward-Looking Statements This news release may contain forward-looking statements that are based on CO2GRO’s expectations, estimates and projections regarding its business and the economic environment in which it operates. These statements are not guarantees of future performance and involve risks and uncertainties that are difficult to control or predict. Therefore, actual outcomes and results may differ materially from those expressed in these forward-looking statements and readers should not place undue reliance on such statements. Statements speak only as of the date on which they are made, and the Company undertakes no obligation to update them publicly to reflect new information or the occurrence of future events or circumstances, unless otherwise required to do so by law.
Neither the TSX Venture Exchange nor its Regulation Services Provider (as that term is defined in the policies of the TSX Venture Exchange) accepts responsibility for the adequacy or accuracy of this release.