TORONTO, March 20, 2019 /CNW/ - CO2 GRO
Inc. ("GROW" or the "Company") (TSX-V: GROW)
is pleased to announce that it has entered into an agreement with a
member of management to settle certain indebtedness (the
"Shares-for-Debt Transaction") of the Company with the
issuance of common shares (each a "Share") of the Company in
order to preserve its cash for use on planned CO2 grow trials,
commercial installations and for working capital. The
issuance requires the approval of the TSX Venture Exchange.
Pursuant to the Shares-for-Debt Transaction, 475,698 Shares will
be issued to Aaron Archibald,
Vice-President - Operations (the "Archibald"). The
Shares are to be issued at a deemed price of $0.265 per Share to settle debt in the amount of
$125,000 related to past-due royalty
obligations due by the Company but assumed by Archibald.
As a result of the Shares-for-Debt Transaction, Aaron Archibald, directly and through his
holding company, holds 4,805,431 Shares or 7.2% of the issued and
outstanding Shares.
As Archibald is an officer of GROW, the Shares for Debt
Transaction constitutes a "related party transaction" within the
meaning of TSX-V Policy 5.9 which incorporates Multilateral
Instrument 61-101 – Protection of Minority Security Holders
in Special Transactions ("MI 61-101"). The
Shares for Debt Transaction is exempt from the formal valuation and
minority shareholder approval requirements of MI 61-101.
All securities issued in connection with the Shares-for-Debt
Transaction will be subject to a statutory hold period of four
months plus a day from the date of issuance in accordance with
applicable securities law legislation.
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.
SOURCE CO2 GRO Inc.