Vancouver BC / NEWSWIRE / July 15, 2019 /CNW/ - Agrios Global Holdings Ltd. (CSE: AGRO) (OTCQB: AGGHF) (FSE: ØSA - WKN-A2N62K) ("Agrios" or the "Company") is pleased to announce that Onyx Agronomics (“Onyx or the “Tenant”) has substantially reduced their carbon footprint, cutting their energy consumption by 63% and achieving greater yield efficiency by following the growing recommendations made by the Company.
Agrios collects millions of unique data points from the crops over the course of the harvest cycle on a per cultivar basis, and then analyzes this “actionable data” in order to develop effective strategies for optimizing the growing environment and reducing the use of energy, light, and water. Thus, crops are raised sustainably in an environmentally friendly way at a reduced cost.
On the advice of Agrios, the plant density in the growing space is modified and a substantial increase in flower-to-trim ratio has been observed. A simple modification in plant placement increased crop yield efficiency from a 50.5% / 49.5% flower-to-trim ratio to an 81% / 19% flower-to-trim ratio. This results in a higher volume of premium product – an increased yield efficiency at lowered production costs, and increased profitability.
Andrew Lange, Chief Technical Officer, reports that, “Overall production or raw yield doesn’t tell the complete story on how a given company is set up to perform financially. There are also several ways to measure crop yield, and some are more effective than others. The most common yield reporting system is grams per square foot (g/sq. ft.) so yields at different facilities can be compared based on productivity. The square footage of the facility is calculated using the canopy of the cultivation area, and product weight should be reported as dry and destemmed.”
However, there are no industry regulations or monitoring of how a yield measurement is calculated amongst commercial operators at the present time. There is variance in what is measured as “canopy” space, and product weight could be of an inconsistent product mix.
Lange believes that achieving production and yield efficiency is more important than maximizing raw yield, for several reasons. Large cannabis cultivation facilities have increased operational cost and risk. While such facilities’ raw yield may be greater, their production costs are also higher. Companies such as Agrios which have developed production efficiencies and consume less energy or are otherwise environmentally friendly, and have a smaller carbon footprint, are also spending less to create more efficient yields.
Chris Kennedy President & CEO of Agrios stated, “We are pleased to validate the benefits of our technology enabled approach to create a sustainable model, enabling cultivators to be competitive, in these current volatile, compressed markets. We have a strong foundation as we focus on our expansion efforts.”
Andrew wrote a detailed explanation of several methods of yield calculation, and the importance of yield efficiency in a June 2019 article for the Cannabis Business Times, entitled Measuring Yield: Why Efficiency Metrics Are Essential. Please visit the link below to view the full article. https://www.cannabisbusinesstimes.com/article/measuring-yield-why-efficiency-metrics-are-essential/
The Company further announces that it has obtained necessary regulatory approval to amend the conversion price of the unsecured convertible debentures originally issued on June 14, 2019, as part of the Company’s non-brokered private placement of unsecured convertible debentures pursuant to the news release dated June 13, 2019, from $0.65 per share to $0.50 per share. Such amendment will apply to all the follow-on tranches of the non-brokered private placement. All other terms of the convertible debentures remain unchanged.
About Agrios Global Holdings Ltd.
Agrios Global Holdings is a data analytics driven agriculture technology and services company advancing the latest innovations in indoor growing science. The Company owns, leases and manages properties and equipment for eco-sustainable agronomy and provides advisory services to support all aspects of aeroponic cultivation in the cannabis sector. Agrios is actively pursuing new opportunities to expand its portfolio of tenant growers and infrastructure assets in strategic licensed jurisdictions. Based in Vancouver, BC. Agrios is managed by a highly accomplished team of experienced industry and capital markets experts who are committed to the growth of the company.
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This news release was prepared by management of Agrios, which takes full responsibility for its contents. The Canadian Securities Exchange ("CSE") has not reviewed and does not accept responsibility for the adequacy of this news release. Neither the CSE nor its Regulation Services Provider (as that term is defined in the policies of the CSE) accepts responsibility for the adequacy or accuracy of this release.
Forward Looking Statements
Statements in this news release that are forward-looking statements are subject to various risks and uncertainties concerning the specific factors disclosed here and elsewhere in Agrios' periodic filings with Canadian securities regulators. When used in this news release, words such as "will, could, plan, estimate, expect, intend, may, potential, believe, should," and similar expressions, are forward-looking statements.
Forward-looking statements may include, without limitation, statements related to corporate strategy and Agrios’ ability to execute such strategy, future developments regarding Agrios’ expansion into various markets including numerous states within the United States of America, and into Asia, expected costs of hemp fiber, intended development and sales of hemp products, market demand for hemp products, and the business and operations of Agrios as it relates to the Yunnan Province.
Although Agrios has attempted to identify important factors that could cause actual results, performance or achievements to differ materially from those contained in the forward-looking statements, there can be other factors that cause results, performance or achievements not to be as anticipated, estimated or intended, including, but not limited to: dependence on obtaining regulatory approvals; investing in target companies or projects which have limited or no operating history and are engaged in activities currently considered illegal under US Federal laws; change in laws; limited operating history; reliance on management; requirements for additional financing; competition; hindering market growth and state adoption due to inconsistent public opinion and perception of the medical-use and adult-use marijuana industry and; regulatory or political change.
There can be no assurance that such information will prove to be accurate or that management's expectations or estimates of future developments, circumstances or results will materialize. Because of these risks and uncertainties, the results or events predicted in these forward-looking statements may differ materially from actual results or events.
Accordingly, readers should not place undue reliance on forward-looking statements. The forward-looking statements in this news release are made as of the date of this release. Agrios disclaims any intention or obligation to update or revise such information, except as required by applicable law, and Agrios does not assume any liability for disclosure relating to any other company mentioned herein.