CO2 GRO Inc. Provides a 2021 Review Highlighting Significant Progress and a 2022 Outlook

Rhea-AI Summary

CO2 GRO Inc. (OTCQB: BLONF) provided an update on its operations for 2021, revealing strong revenue growth despite challenges from COVID-19. The company anticipates 2022 revenues between $1.5M and $2.5M, driven by ongoing and new technology trials. Key highlights include a 33% QoQ revenue growth and 391% YoY growth for Q3 2021. Expanding internationally, CO2 GRO entered markets in Mexico, Spain, Japan, and Malaysia, completing significant sales, including a $127,750 contract without prior trials. The company aims to leverage trade commissioner support for further expansion.

Positive

• 33% QoQ revenue growth from Q2 2021 ($91,660) to Q3 2021 ($122,103).
• 391% YoY revenue growth from Q3 2020 ($24,857) to Q3 2021 ($122,103).
• Achieved ten CO2 Delivery Solutions Commercial Technology Purchases in 2021.
• Secured a significant $127,750 sale without prior technology trial.

Negative

• Ongoing challenges due to COVID-19 affecting commercial development.

TORONTO, ON / ACCESSWIRE / February 16, 2022 / Toronto-based CO2 GRO Inc. ("CO2 GRO" or the "Company") (TSXV:GROW, OTCQB:BLONF, Frankfurt:4021) is pleased to provide an update of its 2021 operations and an outlook for 2022.

John Archibald, CEO, commented, "While COVID did and is still hampering the pace of our commercial development in some regions, we have shown continuous progress in 2021 and in the first month of 2022 with more growers around the world adopting our technology. Our 2022 revenue forecast is between $1.5M-$2.5M which we are confident of achieving through the successful completion of on-going and new Technology Trials and subsequent Commercial Technology Purchases such as with Hidroexpo in 2021, as well as accelerating our direct Commercial Technology Purchases such as the US$127,750 sale announced on January 26^th 2022."

Our Financial Review

• 33% Q/Q revenue growth from Q2 2021 ($91,660) to Q3 2021 ($122,103).
• 391% Y/Y revenue growth from Q3 2020 ($24,857) to Q3 2021 ($122,103).
• Achieved ten CO2 Delivery Solutions™ Commercial Technology Purchases (sales) in 2021.
• Two realized after successful Technology Trials (formerly called commercial feasibilities).
• Eight realized as direct sales.
• Received CanExport funding to support international activities

Other 2021 Highlights

• Entered the Mexican Protected Ag Market with Rancho Nexo as a Marketing Partner.
• Entered the Spanish Protected Ag Market with Jose Andres Munoz as a Marketing Partner.
• Entered the Japanese Protected Ag Market with a Technology Trial at a vegetable greenhouse and joined the Japan Plant Factory Association.
• Entered the Malaysian Protected Ag Market with CH Green Sdn. Bhd. as a Marketing Partner.
• Largest sale in 2021 was in Q4 to El Salvador based Hidroexpo for 1 hectare out of their 36 total hectares of greenhouse peppers.
• Seventeen Technology Trials were announced in 2021 in Canada, the US and internationally in France, the Netherlands, the UK, Israel, South Africa, Japan and Malaysia.
• Ten CO2 Delivery Solutions™ sales, one to a repeat customer.
• The collective square footage of grow facilities conducting CO2 Delivery Solutions™ Technology Trials now exceeds 200 million square feet, with one customer operating 100 million square feet of grow space.

Ongoing Canadian Trade Commissioner Business Development Support

CO2 GRO's business development support by Canada's Trade Commissioners has been exceptionally helpful since first being selected in 2019 for California marketing introductions. Most potential international customers for CO2 Delivery Solutions™ are in geographies between 40° N & 40° S of the equator. About 70% of ongoing Technology Trials are currently with international customers.

• Canada's Trade Commissioners who managed the Canadian Technology Accelerator Ag Tech Program, Mexico selected CO2 GRO to participate. This was the Company's first entry to Mexico's 6 billion square foot protected ag market in Q2 2021.
• Canada's Trade Commissioners in the Netherlands, Belgium, Spain, Switzerland, France and Germany selected CO2 GRO to present at the May 2021 Collaborations in Sustainable Technologies in Agriculture webinar.
• Canada's Trade Commissioners to the Netherlands and Belgium selected CO2 GRO in early January 2022 to participate in their Virtual Trade Mission for revenue generating Canadian Ag Tech companies exporting to the EU, to be held February 21-25 2022.

Other 2021 Trade Missions and Trade Conferences of note

• Ontario's MEDJCT and the Toronto Board of Trade selected CO2 GRO to participate in the Mexico Virtual Trade Mission that supported Ontario Clean Tech companies.
• CO2 GRO participated in Mexico's Greentech America's and AMPHAC Annual Congress 2021 with Mexico marketing partner Rancho Nexo.
• CO2 GRO participated in the Cultivate ‘21 horticulture conference and tradeshow in Columbus, Ohio.
• Joined and presented at Japan's Tenth Annual Plant Factory Conference.

John Archibald, CEO commented "We have seen a continuous improvement each quarter in Technology Trials with the support of both our North American sales force and our international marketing partners. The support of Canadian Trade Commissioners in various key markets has been instrumental in accelerating introductions to potential key customers. We are very grateful to the Canadian Trade Commissioners for their continued support and we look forward to working with them to accelerate penetration of key markets globally."

"In addition, the value of Commercial Technology Purchase contracts signed, such as our recently announced US$127,750 sale and our sale to Hidroexpo, are increasing. The US$127,750 sale is particularly encouraging as it was achieved without a Technology Trial being conducted. These 2021 and early 2022 developments give us confidence as we look forward to achieving our 2022 $1.5M-$2M revenue forecast."

Visit www.co2delivery.ca for more information on CO2 Delivery Solutions™ or  watch this video. 

About CO2 GRO Inc. CO2 GRO Inc.

CO2 GRO's proprietary CO2 Delivery Solutions™ technology is revolutionizing the global 600 billion square foot protected agriculture industry (Cuesta Roble 2019). We create a dissolved CO₂ solution that when misted onto plants provides growers that cannot gas with CO₂ the opportunity to increase plant yields by up to 30% and gross profits by up to 100%. Applying dissolved CO₂ also suppressed the development of pathogens such as E.coli and powdery mildew, helping to reduce crop losses. CO2 GRO's CO2 Delivery Solutions™ is protected by a suite of patents and patents pending.

The worldwide market for CO2 GRO's disruptive CO2 Delivery Solutions™ technology is the 50 billion square feet of greenhouses and 550 billion square feet of protected agriculture facilities (Cuesta Roble 2019). Growers can maximize revenue and profits with our systems' low fixed and variable costs and ease of systems installation.

CO2 GRO's management is rapidly expanding its international marketing partner relationships into Mexico, Spain, the EU, the UK, South Africa, the Middle East, Israel, South East Asia and Latin America as well as in its North American base.

CO2 GRO is committed to good Environment, Social and Governance (ES&G) policy and practices. We are an equal opportunity employer of choice and opportunity.

Our mission is to accelerate the growth of all value plants safely, economically, naturally and sustainably using our patented advanced CO2 Delivery Solutions™ while accreting value to our customers, stakeholders and shareholders.

Forward-Looking Statements

This press release contains statements which constitute "forward‐looking information" within the meaning of applicable securities laws, including statements regarding the plans, intentions, beliefs and current expectations of the Company with respect to future business activities. Forward‐ looking information is often identified by the words "may," "would," "could," "should," "will," "intend," "plan," "anticipate," "believe," "estimate," "expect" or similar expressions and include information regarding: statements regarding the future direction of the Company; the ability of the Company to successfully achieve its business and financial objectives; plans for expansion and the ability of the Company to obtain, develop and foster its business relationships; and expectations for other economic, business, and/or competitive factors. Investors are cautioned that forward‐looking information is not based on historical facts but instead reflect the Company's management's expectations, estimates or projections concerning the business of the Company's future results or events based on the opinions, assumptions and estimates that management considered reasonable at the date the statements are made. Such assumptions include but are not limited to: general business and economic conditions; the Company's ability to successfully execute its plans and intentions; the availability of financing on reasonable terms; the Company's ability to attract and retain skilled staff; market competition; the products and technology offered by the Company's competitors; and that good relationships with business partners will be maintained. Although the Company believes that the expectations reflected in such forward‐looking information are reasonable, such information involves risks and uncertainties, and undue reliance should not be placed on such information, as unknown or unpredictable factors could have material adverse effects on future results, performance or achievements. Among the key factors that could cause actual results to differ materially from those projected in the forward‐looking information are the following: changes in general economic, business and political conditions, including changes in the financial markets; in particular, in the ability of the Company to raise debt and equity capital in the amounts and at the costs that it expects; adverse changes in applicable laws or adverse changes in the application or enforcement of current laws; the biotechnology industry and the greenhouse growers market are highly competitive, and technical advances in the industry will impact the success of the Company, and other risks described in the Company's filings that are available at www.sedar.com. Should one or more of these risks or uncertainties materialize, or should assumptions underlying the forward‐looking information prove incorrect, actual results may vary materially from those described herein as intended, planned, anticipated, believed, estimated or expected. Although the Company has attempted to identify important risks, uncertainties and factors which could cause actual results to differ materially, there may be others that cause results not to be as anticipated, estimated or intended. The Company does not intend, and does not assume any obligation, to update this forward‐looking information except as otherwise required by applicable 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.

For more information, please visit www.co2gro.ca or contact Michael O'Connor, Manager, and Investor Relations at 604-317-6197 or michael.oconnor@co2gro.ca

SOURCE: CO2 Gro Inc.

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FAQ

What revenue growth did CO2 GRO Inc. (BLONF) report for Q3 2021?

CO2 GRO Inc. reported a 33% quarter-over-quarter revenue growth from Q2 2021 to Q3 2021.

What is CO2 GRO's revenue forecast for 2022?

CO2 GRO's revenue forecast for 2022 is between $1.5 million and $2.5 million.

Which international markets did CO2 GRO enter in 2021?

CO2 GRO entered the Mexican, Spanish, Japanese, and Malaysian protected agriculture markets in 2021.

What significant sale did CO2 GRO announce in early 2022?

CO2 GRO announced a significant sale of $127,750 in January 2022, achieved without conducting a technology trial.

How did CO2 GRO's revenue in Q3 2021 compare to Q3 2020?

CO2 GRO saw a 391% year-over-year revenue growth from Q3 2020 ($24,857) to Q3 2021 ($122,103).