Greengro Technologies Inc (OTCMKTS:GRNH) has obtained a down payment of $600,000 on a $7.4 million off-grid PV-solar glass greenhouse from an indoor hydroponic farming firm known as Fresh Local Produce. The firms anticipate to be breaking ground on this facility in Q3 2017.
As per the deal terms, Fresh Local Produce of Ohio gets access to Greengro’s CEA growing techniques and systems, and the company gets a 5% royalty on gross produce sales recorded by the greenhouse. The advanced facility is part of its recently bought Greengro Glass House Franchise, which comprises company’s designing and constructing the greenhouse, setting up hydroponic grow equipment and systems, training operational staff and helping with harvesting, selling and growing crops.
The Greengro Glass House Franchise is presented with a purchase order to buy the entirety of each yearly crop, mainly lettuce, reaped by a facility. Financing alternatives are accessible through preferred lenders. Customers list for Greengro’s franchise program comprise firms in the area of leafy green produce manufacturing and distribution, example lettuce processors and producers.
Greengro intends on recording a recurring revenue stream from many planned 3-acre Glass Greenhouse Franchise sites across the United States. James Haas, the CEO, reported that this preliminary deal with Fresh Local Produce of Ohio marks a thrilling development for company. They are extremely delighted to be working with company’s finance streams, which have been vital in closing this rewarding partnership.
The deal follows Greengro’s March 2017 acquisition of a 51% majority stake in Biodynamics LLC in controlled environment agriculture, renewable energy and hydroponics. Following that deal, Biodynamics’ CEO Mr. Tim Madden was named COO of Greengro Technologies. Commenting on this deal, Madden stated that this recent merger with Biodynamics is resulting in record sales for company, as shown by this multi-million-dollar agreement with Fresh Local Produce.
As an outcome of this sale, Greengro’s revenue is estimated around $8 million for 2017, much higher from revenue of almost $1 million recorded in FY2016.