BlueOcean Announces Sale of its Shrimp Oil Business and CO2 Grow Solutions Focus on Food and Cannabis
October 17, 2017 (Source) — BlueOcean NutraSciences Inc. (“BlueOcean” or the “Company) (TSXV: BOC). After a strategic review, the Company is announcing the sale of its shrimp oil business and focus on its restarted CO2 grow-solutions gas infusion business. Gaining sufficient shrimp oil product sales traction in the competitive supplement industry needs more capital for sales and marketing than the Company could raise.
In contrast, the Company has no competition dissolving CO2 into water without bubbles for indoor and outdoor irrigation. No one gasses CO2 outdoors as plants cannot absorb rapidly dissipating gases in open air. According to Ontario Ministry of Agriculture Food & Rural Affairs (OMAFRA), greenhouses that gas CO2 to 1300 PPM levels will lose 60% of CO2 gassed before used by plants. Dissolved CO2 in water at 1300 PPM without bubbles stays in water. When sprayed on plants, the dissolved CO2 rapidly enters leaf stomata as nature demands, accelerating photosynthesis and plant growth.
Independent algae (300% higher yield) and limited lettuce (100% higher yield) grow trials by Canada’s National Research Council (CNRC) and the University of Guelph to-date point to likely success on a wide range of higher value plants including cannabis. The Company is in discussions with both indoor and outdoor growers and global irrigation and greenhouse infrastructure companies.
Global Addressable Market for Dissolved CO2 Irrigation
Plunkett Research estimates the global retail food and ag market was $8 Trillion/y in 2016 of which $340 Billion/y is grown in greenhouses according to Agrilyst. The global legal cannabis market by 2022 may reach $50B/y of which legal Canada and California grow markets may be $6B/y each according to Canadian cannabis analysts.
CO2 Foliar Spray Patent and Inventory
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In August 2017, the Company filed a provisional US Patent Trade Office CO2 foliar spray/irrigation patent to be 100% owned by BlueOcean.
The Company is allowed under its perpetual royalty-free CO2 license to other US PTO gas infusion patents. There are no other similar patents granted. The Company has seven large CO2 gas infusers in a control unit costing $500,000 and $100,000 of gas-infuser fibre mattes.
BlueOcean’s CO2 Grow Solutions Team
The CO2 Grow Solutions team lead by Mr. John Archibald (that will only be compensated from CO2 unit installations), is comprised of:
Dr. Matt Julius – St. Cloud University of Minnesota former BlueOcean botany science advisor whose team of 7 is retained to perform algae and hemp grow trials.
Dr. Neil Ross – former BlueOcean Science Advisor and NRC Algae scientist for non-algae device installations in east coast cannabis and greenhouse produce.
Dr. George Phillipidis – Professor at Florida International University (FIU) Tampa Florida for US algae network, Florida produce, and intra-Florida medical cannabis.
Aaron Archibald – Former Head of Bus Dev at gas infusion company InVentures Inc.
Sam Kanes – VP CO2 Grow Solutions Bus Dev (was Strategy) and IR for BlueOcean.
Lou Klevinas – Rainbird Canada irrigation background.
Iain Davies – US gas infusion installations.
Tom Cripe – Co-Founder of BlueOcean (then called CarbonAlgae for algae), greenhouse produce and Washington State cannabis greenhouse installations.
BlueOcean NutraSciences Inc. is a Canadian public listed company (TSXV:BOC) whose mission is to develop effective, innovative and sustainable products from Natural Sources, to improve the lives of its customers. This includes naturally accelerating plant growth with dissolved CO2. BlueOcean’s first specialty ingredient is its patent-protected shrimp oil which is the base for its current three consumer brands. Shrimp oil is made from sustainably managed North Atlantic cold water shrimp shells (the by-product of the cooked and peeled shrimp process) which contains phospholipid bound omega-3 fatty acids and over 40 times more natural astaxanthin compared to krill oil ingredients.
Shrimp oil’s unique nutritional properties enables the ingredient to make numerous health claims across a wide range of markets, including the $4Bn omega-3 heart health market, the $9Bn joint health market and the $10Bn sports supplement market. BlueOcean markets its shrimp oil ingredient through a number of consumer brands that are formulated to target these specific markets.
BlueOcean currently markets its shrimp oil under three consumer brands: Pure Polar(R) Omega-3 Shrimp Oil, Joint AXTM and Sport AXTM. Products may be purchased online at purepolarlabs.com
Its CO2 gas infusion technology dissolves CO2 into water to apply to plant leaves via foliar irrigation, sprays, mists and foggers. Applying dissolved CO2 enriched water to indoor plants can potentially save a greenhouse 50% of its CO2 gassing costs and further accelerate plant growth. Much higher yields are expected in arid outdoor irrigation applications as CO2 delivery outdoors has never been tried.
This news release may contain forward-looking statements that are based on BlueOcean’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.
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