Greengro BioD Investment Prospectus Ned3 · "The Growing U.S. Greenhouse Produce Niche --...
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GREENGRO TECHNOLOGIES INC. INVESTMENT PROSPECTUS March 2017
Transcript of Greengro BioD Investment Prospectus Ned3 · "The Growing U.S. Greenhouse Produce Niche --...
GREENGRO TECHNOLOGIES INC.
INVESTMENT PROSPECTUSMarch 2017
GreengroTechnologies/BiodynamicsCEA
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GreengroTechnologies,Inc. (OTC:GRNH),aworld-classproviderofeco-friendlygreentechnologies,announcedinMarch2017thattheCompanycompletedtheacquisitionofa51percentmajorityinterestinBiodynamicsCEA,anAkron,Ohio-basedleaderincontrolledenvironmentagriculture(CEA),renewableenergyandconsumerhydroponics.
TheGreengro-BiodynamicsmergerbringstogethertwotopCEA-industrycompaniesthatnowenableGreengrotoofferacompleterangeofleading-edgeturnkeysystems,fromsmallgrowroomstostate-of-the-art,off-grid,commercial-scaleverticalfarmsthatproduceorganicfruits,vegetablesandherbs,year-roundinanyclimate.
GreengroTechnologies’CEOJamesHaasannouncedthatBiodynamics’CEOTimMaddenhasbeennamedGreengro’sCOO.
GreengroTechnologies/BiodynamicsCEA
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GreengroTechnologiesisaworld-classproviderofeco-friendlygreentechnologiesandaspecialistinequityinvestmentsandmergersandacquisitionsinthecommercialcannabisindustry.GreengroTechnologiesisanationalleaderinbothindoorandoutdooraquaponicandhydroponicsystemsandgrowrooms,withspecificdomainexpertiseinagriculturalsciencesystemsservingboththeconsumerandcommercialgrowingmarkets.Thecompany'scustomersincluderestaurants,communitygardens,andsmall- andlarge-scalecommercialclients.GreengroTechnologiesalsoprovidesdesign,constructionandmaintenanceservicestolargegrowandcultivationoperationsandcollectivesinthemedicalandrecreationalmarijuanasectors.Formoreup-to-dateinformation,likeGreengro’sFacebookpageat https://www.facebook.com/GreengroTechnologiesInc?ref=hl
GreengroTechnologies/BiodynamicsCEA
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BiodynamicsCEAisanindustryleaderinControlledEnvironmentAgriculture(CEA),specificallycommercialhydroponicverticalfarmsthatuseprecisionenvironmentalcontroltoprotectcropsfromenvironmentalelementsandenableyear-roundproductionofhighquality,locallygrownproduce. Biodynamicsfocusesonofferingturnkey,fullyautomated,off-grid,state-of-the-art,high-techhydroponicverticalfarmsasoneofthemarket’spremierindoorCEAsystemsproviders.Thecompany’stargetmarketofcustomersincludesbusinessesandinstitutionsinthefieldofproduceproductionanddistribution.SecondarymarketsincludecorporateR&Dlaboratoriesanduniversityagriculturalschools.Biodynamics’Midwestofficesareat1109SouthWaterSt.,Kent,Ohio44223.(P)330-920-6040(I)www.biodynamicscea.com;(Email)[email protected]
ForwardLookingStatementsBiodynamicsCEA, referredhereinasthe“Company,”isprovidingconfidentialinformationcontainedinthesepresentationmaterials,includinganyattachment,addendums,chartandtables,andisintendedsolelyfortheusebytherecipientofthesematerials,hereindefinedas“You”andyourimmediateRepresentatives.Access,copyingorre-useofthepresentationmaterialsoranyattachmentaddendums,chartandtables,oranyinformationcontainedherein,byanyotherpersonisnotauthorizedwithoutpriorwrittenconsentofBiodynamics,LLC.
TheInformationwill(a)bekeptconfidentialbyYou,(b)notbeusedbyYouinanywaydetrimentaltotheCompany,and(c)notbeusedotherthaninconnectionwiththeEvaluation.Youmay,however,disclosetheInformationtoyourRepresentatives(including,butnotlimitedto,consultants,accountants,attorneysandlenders),butonlyifyourRepresentativesreasonablyneedtoknowtheInformationinconnectionwith theEvaluation.
Youwill(i)informeachofyourRepresentativesreceivingInformationoftheconfidentialnatureoftheInformation(ii)directyourRepresentativestotreattheInformationconfidentiallyandnottouseitotherthaninconnectionwiththeEvaluation,and(iii)beresponsible foranyimproperuseoftheInformationtotheCompanyoryourRepresentatives(includingwithoutlimitationyourRepresentativeswho,subsequenttothefirstdateofdisclosureofInformationhereunder,becomeyourformerRepresentatives).
WithoutthepriorconsentoftheCompany,Youwillnot,andwilldirectyourRepresentativesnotto,disclosetoanyperson(1)thattheInformationhasbeenmadeavailabletoYou,(2)thatdiscussionsrelatingtoapossibleTransactionaretakingplace,or(3)anyotherfacts withrespecttothediscussionsbetweenYouandtheCompany.
AssoonaspossibleupontheCompany'swrittenrequestorupontheterminationoftheEvaluationbyYouortheCompany,YouandyourRepresentativeswillreturntotheCompanyalltangibleInformationwhichhasbeenprovidedtoyouandwilldestroy(or,atouroption,returntotheCompany)allInformationpreparedbyYouoryourRepresentatives.Suchdestruction(orreturn)willbeconfirmedinwritingtotheCompanyupontheirrequest.
ThiswillnotapplytosuchportionsoftheInformationwhich(a)areorbecomegenerallyavailabletothepublicthroughnoactionbyYouoryourRepresentativesor(b)areorbecomeavailabletoYouonanon-confidentialbasisfromasource,otherthantheCompanyoritsRepresentatives,whichYoubelieve,afterreasonableinquiry,isnotprohibitedfromdisclosingsuchportionstoyoubyacontractual,legalorfiduciaryobligation.
• BiodynamicsCEAspecializesinControlledEnvironmentAgriculture(CEA)systems,producingsuperiorqualitycropsthroughprecisionenvironmentalcontrolthatenablesyear- roundproductionoflocallygrownorganicproduceinanyclimate.
• Combinationofengineering,plantscienceandcomputer-managedgreenhousecontroltechnologies
• Involvestakinganindoor,technology-basedapproachtowardfoodandplantproduction.
• Offerproprietary,turn-key,fullyautomated,state-of-the-art,high- tech,LEED-certifiedhydroponicgreenhousesasthemarket’sprimaryindoorCEAsystems– “smartCEAlettucefactories.”
AboutUs:
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CompanyOverview
TechnologyPlatform
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Biodynamicsprovidesfacilities,systems,equipmentandsuppliesforprofessionalcommercialgrowersofhydroponiccrops(thatis,growingcropswithoutsoilinacontrolledenvironment).
Ourautomated,computer-controlledhydroponicsystemsproducequantitiesofleafygreenvegetablesandherbsofallvarietiesfreeofpesticides,herbicides,residuesandpathogens.
The2015whitepaper,“IndoorCropProduction:FeedingtheFuture,”states:Itssubstantialmarketpotentialhasbeenonlymarginallypenetratedbytraditionalgreenhousehydroponics,whichin2013hadtotalrevenuesof$555million,withlargegreenhousesacrossNorthAmerica,”statesthereport.
• BiodynamicssellsandbuildsadvancedcomputercontrolledCEAturn-keyproductionfacilities
• World’sfirstenergy-neutralagriculturaltechnology.
• Setthenewstandardinenergy-efficientinvestmentforlettucecultivators,resultinginmaximumproductionandhigherquality.
ControlledEnvironmentalAgriculture(CEA)
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TechnologicalBenefits
Thebenefitsinclude:
• Approximately5to15percentmorelightbyomittingfresh-airvents.
• Diminishedpestpressurebykeepingoutinsects.
• Optimizedhumidityandtemperaturecontrol.
• HigherCO2levelsinsidetheCEAfacility.
• AgreaterairbufferzoneintheCEAfacilitybecauseofa7-metre-highstructure,resultinginabetterinternalclimate.
• Minimalwaterandnutrientsusagethroughrecirculation
• Anenergyconservationof15to25percentprovesattainableinpractice.
• Higherproductionvolumes(15to20percent).
CEATechnology
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WhyBiodynamics?
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BIODYNAMICSISPOSITIONEDTO
CAPITALIZEONTHISOPPORTUNITYTOGROWAROBUSTCEABUSINESSINTHECOMING
DECADE
GOVERNMENTANDPUBLICPROGRAMSFOCUSINGMOREONFRESH,SAFE,LOCALLYGROWN
PRODUCE,LEADINGTOAHIGHERDEMAND
GROWINGAWARENESSTOEATSMARTER,“YOUAREWHAT
YOUEAT!”
INCREASEINFUELANDLABORCOSTS,UNPREDICTABLE
WEATHER,RESOURCECHALLENGES,
GROWINGCONCERNFORFOOD
CONTAMINATION
TRANSITIONALMARKETCHANGES,FOCUSINGMOREONFOODINDUSTRYCHALLENGES
EmergingNeeds
• TheBiodynamicshydroponicCEAprojectofferstheNortheastandStateofOhiotheopportunitytoparticipate,asaleader,inthisdynamichighdemandgrowthindustry.
• Sustainablebusinessmodelforjobgrowth,geographicreachfordistributionoflocallygrownproducts,high-profilecommitmenttobeing“environmentallyresponsible”andfutureexpansion.
• Fieldgrowersareunabletomeettheneedofsuperiorqualityproduce.Biodynamicshydroponicgreenhousesutilizethemostcurrenttechnologyinhydroponicgrowingsystems(HGS)toadequatelymeetthatneedandsatisfydemand.
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WhyLettuce?
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Today,intermsofproductionvalue,lettuceistheleadingvegetablecropintheUnitedStates,whichisthesecondlargestlettuce-producingcountrybehindChina.
USproductionin2010totaling8.7billionpoundsoflettuce.AccordingtotheU.S.CensusBureau,300,000acresofAmericanfarmlandiscultivatedinlettuce,producingavalueof$2.2billion,makingitthenation’sleadingvegetablecropintermsofvalue.
Therearethreegeneraltypesoflettuce:head,leafandRomaine.Some“specialtylettuces”includearugula,Belgianendive,fieldsalad,escaroleandradicchio.
In2010,headlettucewas53percentofthevalue,Romaine40percentandtheremainingsevenpercentwasconsistedofleaflettucetypes.
BiodynamicsRomaineLettuce
Uniqueforanumberofreasons:
• “Livinglettuce”:deliveringtheproducttowholesalers,retailgrocerystoresandrestaurantswiththerootsattached
• Consistent,safe,andpathogen-freeproduce:Reducesriskoffoodcontamination
• Locallygrown:Decreasesproductioncosts,lowersourcarbonfootprint,andsavesenergybyreducingfoodmilesandshippingcosts.
• Emphasisondisclosuresurroundingtheoriginandexpectationsforresponsibleproductionisgrowing.
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CEAPotentialMarket
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• A2013reportfromRabobank's Food&AgribusinessResearchandAdvisory(FAR)grouptitled"TheGrowingU.S.GreenhouseProduceNiche-- CapitalizingonHighTechQualityandConsistency"statesthattheneedformoreintensivefoodproductionduetolimitedland,waterandlaborhaspushedsalesover$3billionandisestimatedtoreachover$4billionby2020.
• BiodynamicsfocusesonmarketingitsCEAsolutionstolettucegrowersinfoursignificantproducemarketsectorsthroughfoodbrokersanddistributors:
SupermarketsSpecialtymarketsFoodserviceTerminalmarkets
MarketGrowth
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• Asoftoday,98percentofU.S.lettuceproductioncomesfromCaliforniaandArizona.Theactualcostsofcross-countryrefrigeratedshippingcontinuetocompressprofitmargins,asdoenvironmental,waterconservation,laborandfoodsafetyissues.Additionally,lossofproduct(shrinkage)atthewholesaleandretailpointofpurchasecontributestotheirincreasedcostandaddstoBiodynamics’s currentandfuturevalueproposition.
• Risingcontaminationincidents(e.g.,recentrecallsofRomainelettucewiththepresenceofe.coli)andabruptclimateandweatherchangesarecreatingaheightenedawarenessbygovernment,institutions,wholesale/retailbusinessandmostimportantlytheconsumers.
• TheHydroponicCropFarmingindustryisinthegrowthstageofitslifecyclebecauseofitsincreasingnumberofnewparticipants,highindustryvalueaddedandrapidgrowthofcustomeracceptance.Industryvalue-addedisexpectedtogrowatanaverageannualrateof4.9percentfrom2006to2016,whichisfasterthanthenationalGDPgrowthrateof1.8percentinthesametimeperiod.
• Inadditiontocontributingstronglytothenation'sGDP,theindustryisgrowingrapidly.From2011to2016,companynumbershaveincreasedatanaverageannualrateof2.4percent.Already,companieshaveincreasinglyenteredtheindustryandrevenuehasrisenconsistently.Thisgrowthwilllikelycontinue,asconsumersdemandmorefreshfruitsandvegetablesduringthenextfiveyears.
ProductionValues
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BenefitsofCEA
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CEAcombinesengineeringandcomputer-managedgreenhousecontroltechnologiesusedtooptimizeplantgrowingsystems,plantqualityandproductionefficiency.
CEAismoreproductivethanopen-fieldagriculture(OFA).Anadvancedandintensiveformofhydroponicallybasedagriculture,CEAincorporatesagriculturaltechnologiesthatenablegrowerstomanipulatecropenvironmentstodesiredconditions– freeofdrought,pathogens,pollutionandothernegativefactors.Plantsaregrownwithinacontrolledenvironmentsothathorticulturalpracticescanbeoptimized.
HowCEAWorks• Allowstablecontroloftheplantenvironment,includingtemperature,lightand
CO2.
• Provideseparatecontroloftheroot-zoneenvironment.
• Providesecure,healthyandcost-effectiveyear-roundproductionofmanypremiumedible(andornamental)high-valueplantspecies.
• Controlledvariablesincludetemperature,humidity,pH(acidityoralkalinityofasolution)andnutrientanalysis.
• CEAhydroponicgreenhousesexistthroughouttheworld.Heatedgreenhousesaregenerallyrequiredforyear-roundcropproduction.Thesestructurescanbeprofitableifusedtogrowhigh-quality,cost-competitiveproducts.
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• CEAisascendantinthecontemporaryfoodmarketplacebecausetherehasbeenaparadigmshiftintheglobaleconomyandintheuseofnaturalresources,particularlythewaysinwhichproduceissourcedtoday.Changesinconsumerawarenessaboutadvantageouseatinghabitsandtheirrelationshiptogoodhealthhaveaffecteddemandformorehighlynutritiousfoods.Forcompaniesenteringthismarket,historicalbarrierstoentry(e.g.,pricingparameters)havechanged,andrecenttechnologicalinnovations(e.g.,automation)haveimprovedprospectsforsuccessinthisfield.
• CEAproductionsystemsencourageresourceconservationalongwithpreservingtheenvironmentagainsttherelentlessexploitationofthelandandwater.Thesesystemsalsooffermanynewconsumptionalternativesandopportunitiesfortomorrow'sGLOBALpopulation.
• AprimaryCEAbenefitisthatCEAproductionsystemsextendthegrowingseasonsinmanyregionsoftheworldandcanproducehorticulturalcropswherefield-grownfreshvegetablesareunavailableformuchoftheyear.
• Conservationofdwindlingnaturalresources.
• Growingexpectationsofachievinghigherqualityyields.
• Increasingpressuresforfoodsafetyandsecurity.
• Optimalapplicationforcropsthat,thoughofhighvaluetotheconsumer,arehighlyperishableinthegrocerysupplychain.
NeedforCEA
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IndoorAgricultureIndustryTimeline
ManufacturingMilestones
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• SignedManufacturingAgreementwithLaboratoriesRamoslocatedinManagua,NicaraguaAugust2013• ReceivedapprovaltoexportLodonalTM
issuedfromtheMinistryofHealthfortheRepublicofNicaraguaforthetreatmentofCancer,HIV/AIDSandautoimmunediseases,
• CGMPapprovedfacility• IssuedCertificateofFreeSalestoExport to:
(IssuedNovember2013 &hasbeenrenewed)• TheFederalRepublic ofNigeria• RepublicofEquatorialGuinea• RepublicofMalawi• GaboneseRepublic
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KeyPartnerships
2014
UARF ??
OARDC UARF ??
AkronGlobalBusinessAccelerator
02-2014BiodynamicsbecamepartofAGBA,asmallbusinessincubatortoassistinthesuccessofsmallbusinesses
06-2014BiodynamicspartneredwithOhioStateUniversity’sAgriculturalResearchandDevelopmentCenter
05-2015Biodynamics has partnered withUniversity of Akron’s ResearchFoundation
02-2016Worktogethertointegrateresearchsupportservices,includingpre- andpost-awardcontractadministration,tofacilitatecompliances
07-2016TNIB Int’l funds 6 months trialfor cancer
02-2016Protocol Approved and StudyAgreement Signed
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FINANCIALS
1109SOUTHWATERST.KENT,OH44240
WWW.BIODYNAMICSHYDROPONICS.COM
