CO2 GRO Inc. Provides a Q3 2023 Business Development Update

Lessons Learned, Technology Upgrades, Sales Outlook

TORONTO, ON / ACCESSWIRE / September 7, 2023 / CO2 GRO Inc. [(TSXV:GROW)(OTCQB:BLONF)(Frankfurt:4021)] is pleased to provide a detailed Business Development Update for our shareholders, customers, and all stakeholders invested in our incredible journey and growth story.

We recently published our Q2 2023 financial results which included the following highlights: (all figures in C$ unless mentioned otherwise):

Cash on hand as at June 30, 2023 was $430,000. Since that time, we've collected more receivables totaling over $250,000.

In Q3 2023, CO2 GRO received financing for our Pay-for-Use ("PFU") contract with a Canadian greenhouse grower signed in Q2 2023. Financing was arranged with a Canadian financial entity that purchased and leased a portion of the PFU contract for the grower. The grower is responsible for all lease payments. Funds received will be recorded as Q3 2023 revenue. Third-party financing of a portion of our PFU contracts ensures we receive cash up front while maintaining a long-term recurring revenue stream from the grower. CO2 GRO announced two PFU contracts totaling $1.3M in 1H 2023. The first for approximately $500,000 was to a major Canadian greenhouse grower. The second $800,000 PFU contract was with El Salvador-based Hidroexpo, who have now signed a total of $1M in sales contracts.

We expect to end the year with 2023 commercial sales contracts ("Sales") to total between $2M to $2.5M based on current Technology Adaptation Projects ("TAPs" ) due to conclude in Q4 2023. A TAP is the opportunity for a grower to analyze the benefits of the technology and for CO2 GRO to adapt the technology to the grower's unique facility. Typically, a grower will pay for the cost of this project.

Our combined Sales opportunities with growers currently engaged in Technology Adaptation Projects ("TAPs") for 2023 and continuing into 2024 is $18M (only includes the initial order size from our large EU-based customer, otherwise including their total opportunity, the total Sales opportunity with current TAP customers is nearly $145M).

Remarks from CO2 GRO CEO, John Archibald;

"Over the past 24 months, we have made tremendous progress in building our business and are now able to accelerate sales across all our target markets. The intention of this press release is to provide valuable insights into our revenue expansion progress, lessons learned, new developments in optimizing our unique technology and new customer development, as well as our expectations over the next 12 to 18 months. We are encouraged by the progress we have made; our customers are excited by the improvements we have delivered and the results they are seeing; and we look forward to a strong final stretch of the 2023 season and ramping up into 2024.