Led by Ospraie Ag Science LLC
A
leading Global Strategic Ag-Tech Investment Fund
/NOT FOR DISTRIBUTION TO UNITED STATES NEWSWIRE SERVICES OR FOR
DISSEMINATION IN THE UNITED
STATES/
TORONTO, Aug. 6, 2020
/CNW/ - Toronto based CO2 GRO Inc.
("GROW" or the "Company") (TSXV: GROW, OTCQB: BLONF,
Frankfurt: 4021) is pleased to
announce the intention to complete a $1,380,000 fully-subscribed private placement
(the "Offering") led by Ospraie Ag Science LLC
("OAS"), investing $1.2
million in the Offering. OAS is a leading global Strategic
Ag-Tech Investment Fund.
The Offering is comprised of 11,498,695 units (each, a
"Unit") at a price of $0.12
per Unit, for aggregate proceeds of $1.38
million. Each Unit will consist of one common share (a
"Common Share") and one common share purchase warrant (a
"Warrant"). Each Warrant will entitle the holder to
purchase one Common Share of the Company at a price of $0.15 for eighteen months from the date of
issuance.
It is expected that upon completion of the Offering, OAS will
own over 10% of the common shares of the Company. GROW has
agreed to provide OAS with a pre-emptive right to participate in
future offerings of GROW securities in order to maintain its
percentage of ownership at the time of such offering.
GROW intends to use the proceeds from the Offering to
significantly increase business development activities; enhance and
grow its Ag Industrial partnerships, its sales and technical force,
fund identified value creating R&D projects and for working
capital and general corporate purposes.
In addition, OAS' Tom Wiltrout
will join GROW's Board of Directors subject to TSX Venture Exchange
approval. Mr. Wiltrout's entire career has been in the
agriculture industry with 35 years at Dow AgroSciences LLC where he
was a strategic leader developing the global seeds business.
Currently, Mr. Wiltrout serves on the Board of Directors of
Agricultural Alumni Seed Improvement Association, Inc., Innovative
Seeds Solutions, LLC, and Remington
Holding, LLC.
According to John Archibald, CEO
of GROW, "We are thrilled to welcome Ospraie as a strategic
investor in GROW and Tom to our Board of Directors. Ospraie is a
leading strategic global Ag-tech investor focusing on companies
with the potential to significantly transform sustainable
agriculture. We believe their participation is a milestone
endorsement of our CO2 Delivery Solutions'™ exceptional growth
potential. As a strategic investor, Ospraie will bring additional
benefits to GROW including industry relationships and expertise.
Their Board participation and strategic guidance will allow us to
accelerate the roll-out of our patent protected aqueous CO2
technology into greenhouses that cannot gas with CO2 and access
broader geographic market penetration through their network."
Commented Tom Wiltrout, OAS
Partner "We are very impressed with the potential of CO2 Delivery
Solutions™ due to the multiple benefits it brings to greenhouse
growers and ability to service numerous plant markets including
vegetable, hemp, cannabis, floriculture and others. At OAS, we
continuously seek to invest in companies with transformational
technology and exceptional revenue growth potential in sustainable
agriculture. GROW met all of our exacting investment criteria and
we look forward to working with GROW's management and Board to
potentially enhance shareholder value."
1,498,695 Units are expected to be subscribed for by insiders of
GROW. This subscription by insiders will be considered to be a
"related party transaction" within the meaning of TSX-V Policy 5.9
which incorporates Multilateral Instrument 61-101 ("MI
61-101"). GROW intends to rely on the exemptions from the
valuation and minority shareholder approval requirements of MI
61-101 contained in sections 5.5(b) and 5.7(a) of MI 61-101 in
respect of such insider participation.
Completion of the Offering is subject to the acceptance of the
TSX Venture Exchange. The securities issued pursuant to the
Offering will be subject to a hold period of four months plus one
day from the date of closing. No commission or finder's fee
will be paid in connection with the Offering.
The Units have not been registered under the U.S. Securities Act
of 1933, as amended, and may not be offered or sold in the United States absent registration or an
applicable exemption from the registration requirements. This
press release does not constitute an offer to sell or the
solicitation of an offer to buy the securities herein described and
shall not constitute an offer, solicitation or sale in any
jurisdiction in which such offer, solicitation or sale would be
unlawful prior to registration or qualification under the
securities laws of that jurisdiction.
About Ospraie Ag Science
Ospraie Ag Science LLC's (OAS) Mission is to identify solutions
to help farmers "Do More With Less". By increasing
profitability, improving quality-adjusted yield, and reducing
environmental impact, our companies not only benefit producers, but
generate smarter, healthier, and more efficient food for consumers
globally. Utilizing our extensive network and 25 years of
experience investing in agriculture, OAS is positioned to help
farmers achieve a sustainable future.
About CO2 GRO Inc.
GROW's target markets are focused on the 50 billion square feet
of global greenhouse and covered cultivation space (USDA).
Atmospheric enrichment of CO2 by gassing has been practiced in
indoor and expensive sealed greenhouses for decades resulting in
enhance crop yields of up to 30%. However, 85% of the world's
greenhouses are unsealed and have open-venting designs for heat
ventilation which makes CO2 gassing uneconomical and impractical
since the CO2 gas easily escapes.
GROW's CO2 Delivery Solutions™ naturally and safely dissolves
CO2 gas into water creating an aqueous CO2 solution which is then
misted directly on plant leaves. GROW has demonstrated its
technology to be as effective as CO2 gassing by improving crop
yields up to 30%, while using a fraction of the CO2 gas. The CO2
solution's micro droplets create an aqueous film around the entire
leaf surface, isolating the leaf from the atmosphere. This creates
a diffusion gradient favoring CO2 transport into the leaf and other
gases out of the leaf. Increased carbon availability enhances
photosynthesis resulting in faster and larger plant growth. CO2
Delivery Solutions™ has been demonstrated on crops including
Cannabis, hemp, lettuce, kale, microgreens, peppers and
flowers. In addition, aqueous CO2 misting offers Perimeter
Protection™ for plants by slowing the spread of micro pathogens
such as E. coli and powdery mildew. Greenhouse growers
everywhere can now supplement CO2 to their crops using CO2 Delivery
Solutions™, increasing plant yields and profits.
Forward-Looking Statements
This news release may contain forward-looking statements that
are based on CO2 GRO'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.
SOURCE CO2 GRO Inc.