CO2 GRO Inc. Provides a Corporate Update for the First Quarter of 2021

Rhea-AI Summary

CO2 GRO Inc. (OTCQB: BLONF) is reporting a strong start in Q1 2021 with sales of its CO2 Delivery Solutions™ systems to Canadian micro-cultivators and producers. The company signed a Marketing MOU in Malaysia targeting an extensive agriculture market and expanded its North American sales team. Highlights include interim yield increases of 20% in pepper crops and raising $700,000 through warrant exercises. The firm anticipates increased sales and feasibility projects in North America and internationally while continuing to adapt to COVID-19 impacts.

Positive

• Sold two CO2 Delivery Solutions™ installations to Canadian producers.
• Signed MOU with CH Green for the Malaysian protected agriculture market.
• Expanded North American sales team with strategic hires.
• Announced positive interim results with a 20% yield increase in peppers.
• Raised $700,000 from warrant and option exercises.

Negative

• None.

TORONTO, ON / ACCESSWIRE / April 27, 2021 / Toronto based CO2 GRO Inc. ("GROW") (TSX-V:GROW)(OTCQB:BLONF)(Frankfurt:4021) is pleased to provide a review of its First Quarter 2021 operations and business prospects for the balance of 2021.

John Archibald, CEO, commented, "We have begun 2021 with a strong start, directly selling our 19th and 20th CO2 Delivery Solutions™ systems without commercial feasibilities to a Canadian licensed micro-cultivator and our first to a Canadian Licensed Producer. In addition, we added a marketing partner in Malaysia with CH Green, a market with significant potential. The signing of four additional commercial feasibilities gives our team more confidence that the balance of 2021 will be productive."

First Quarter 2021 Highlights

1. Sold two CO2 Delivery Solutions™ commercial installations, one to a Canadian micro-cultivator and one to a Canadian Licensed Producer. Both sales did not require a commercial feasibility.
2. Signed an MOU with CH Green to market and sell our CO2 Delivery Solutions™ technology to the 800 million square feet protected agriculture market in Malaysia.
3. Strengthened and increased our North American sales team in response to quickly growing interest and business development opportunities with the addition of Darla Lanphear as North American Sales Manager. Darla now heads 30 sales representatives across Canada and the United States. In addition, we hired Mariana Mendez as Scientific Project Manager to ensure the successful execution of commercial feasibility projects with customers.
4. Announced commercial feasibilities for medicinal plants (France), strawberries (Netherlands), tomato varieties (Leamington, Ontario and Redcliff, Alberta), and macadamia tree seedlings (South Africa).
5. Announced interim 20% pepper yield increases after ten weeks at a commercial 1-Ha pepper greenhouse in El Salvador.
6. Raised a further $700,000 on the exercise of warrants and options by long-term shareholders and management adding to our $1.38M non-brokered private placement completed last August 2020.
7. Participated in Canada's Trade Commissioner to Mexico CTA Accelerator Program, introducing GROW to Mexican protected agriculture growers, associations and potential marketing partners.

2021 Commercial Feasibilities

2021 commercial feasibilities due to start will be in Canada, the U.S., Israel, Malaysia, Colombia, France, South Africa and the Netherlands. The duration of these commercial feasibilities generally ranges from six months up to a year from installation. A number of commercial feasibilities from 2020 remain ongoing.

The timing and probability of selling a commercial installation system after a commercial feasibility has concluded is dependent on CO2 Delivery Solutions™' performance against the feasibility objectives, the success of management in negotiating agreements and continued COVID-19 related impacts. GROW continuously works towards adding to its commercial feasibilities list in countries where it has a presence and expanding its network of marketing partners in additional countries.

2021 Conferences Where GROW has Virtual or Physical Exhibitor Booths

For 2021, GROW has or had exhibitor booths at:

1. The North American Raspberry & Blackberry Virtual Conference (NARBA) (February 22-25)
2. The Middle East Food Security Virtual Conference with Partner Gulf Cryo (March 23-24)
3. Greenhouse Canada's Virtual Cannabis Conference (April 14)
4. Greenhouse Canada's Virtual Horticulture Conference (June 22)
5. Cultivate 2021 Conference in-person (July 9-13)

COVID-19 Impacts on Operations

GROW has made progress developing its business even with travel restrictions and other COVID-19 related constraints. GROW has therefore focused on its foothold markets where we have strong regional partners in North America, the UAE, Colombia, El Salvador, Israel, the UK, the Netherlands, Belgium and recently South Africa and Malaysia. The Company's regional sales representatives and regional contracting partners continue to work on business development and installations. In addition, the Company has developed virtual sales and installation programs to support customers despite physical restrictions.

Second Quarter to Fourth Quarter 2021 Outlook

John Archibald, CEO concluded, "We are evaluating potential Mexico marketing partners to help us expand in the 5 billion square foot Mexican protected agriculture market. Our CTA participation introduced us to a number of potential marketing partners and growers who have expressed strong interest in our technology. We would also like to add a Spanish marketing partner later in 2021 after researching their large protected agriculture market. We are mindful of the ongoing COVID-19 impacts in various markets. Barring a significant increase in the number of our markets being subjected to extended lockdowns or stay at home orders we expect to sign significantly more commercial feasibilities with growers in North America and in countries covered by our marketing partners. Most of our existing commercial feasibility projects finishing this year should convert into sales while we also expect more direct sales, especially in the Canadian Cannabis market where we are already seeing direct sales. We believe that CO2 Delivery Solutions™ will become the "go-to" CO₂ yield improvement technology in the global 600 billion square foot protected agriculture market. The vast majority of these protected growers cannot use CO₂ gassing but can use our CO2 Delivery Solutions™ technology to capture up to 30% more plant yield and revenue, and up to double their profitability."

Visit www.co2delivery.ca for more information on CO2 Delivery Solutions™ or watch this video To see a CO2 Delivery Solutions™ system installation, watch this video.

About CO2 GRO Inc.

GROW's proprietary CO2 Delivery Solutions™ technology is revolutionizing the global 600 billion square foot protected agriculture industry (Cuesta Roble 2018). We create a saturated 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 profits by up to 100%. Applying saturated CO₂ also suppressed the development of pathogens such as E.coli and powdery mildew, helping to reduce crop losses. GROW's CO2 Delivery Solutions™ is protected by a suite of patents and patents pending.

The worldwide market for GROW's disruptive CO2 Delivery Solutions™ technology is 50 billion square feet of greenhouses and 550 billion square feet of protected agriculture facilities (Cuesta Roble 2018). Growers can maximize revenue and profits with our systems' low fixed and variable costs and ease of systems installation.

GROW's management is rapidly expanding its international marketing partner relationships into the EU, the UK, South Africa, the Middle East and Latin America as well as in its NA base.

GROW 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, Investor Relations Manager at 604-317-6197 or michael.oconnor@co2gro.ca

SOURCE: CO2 Gro Inc.

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FAQ

What were the key achievements of CO2 GRO Inc. in Q1 2021?

CO2 GRO Inc. reported sales of two CO2 Delivery Solutions™ installations and signed a marketing MOU with CH Green for Malaysia.

How much revenue did CO2 GRO Inc. raise in the first quarter of 2021?

CO2 GRO Inc. raised $700,000 from the exercise of warrants and options by long-term shareholders.

What is the expected market impact of CO2 GRO's technology?

CO2 GRO's technology aims to increase yields by up to 30% and profits by 100% in the global protected agriculture market.

What are the future commercial feasibilities planned by CO2 GRO Inc.?

CO2 GRO plans commercial feasibilities in Canada, the U.S., Israel, Malaysia, Colombia, France, South Africa, and the Netherlands.