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ANAHEIM, Calif., March 11, 2021 /PRNewswire/ -- GreenGro Technologies, Inc. (OTC: GRNH), an established provider of eco-friendly green technologies for the industrial hemp and cannabis industries, today issued a Special Letter to Shareholders in which it announced it expects to achieve significant financial gains and profitability in the current fiscal year based on the benefits of last year's restructuring plan followed by this year's new business plan and growth strategy. Text of the Special Letter to Shareholders is as follows:
"Dear Fellow Shareholder,
While 2020 will be remembered as the year of the COVID-19 pandemic, with the closure of companies and countries completely paralyzed, GreenGro Technologies (OTC: GRNH) was able to capitalize on this period by successfully restructuring our business model into three separate divisions as well as the introduction of a licensing model that is expected to contribute a consistent and sustainable stream of high-margin revenues into the foreseeable future. The strategic investments we made last year, key management appointments and favorable economic and legislative climate with a new pro-cannabis administration should enable us to achieve a significant ramp-up in revenues and positive earnings, as early as this year.
GreenGro to License its Technology and Expertise to the Hemp and Cannabis Industries
One of the most important developments at GreenGro in 2021 has been our ability to create an entirely new revenue channel based on a licensing strategy, a first for us since our formation. We recently launched our 420 Rescue™ brand, a unique and proprietary services offering that is designed to help save hemp and cannabis farms across the United States that are on the brink of shutting down due to their lack of experience in operating a hemp and/or cannabis farms.
In 2019, when the implementation of The Farm Bill of 2018 took hold across the United States, tens of thousands of struggling farmers saw hemp as the new cash crop. They quickly adapted their cultivation and agricultural practices to a market worth almost $5 billion in its first year.
Unfortunately, jumping feet first into an unpredictable market proved to be challenging for farmers for several reasons, including:
Unclear regulations from the USDA that took two years to finalize regarding testing, and dealing with "hot" hemp, amongst other critical regulations.
Volatility in the markets for the price of hemp biomass.
Increased cost of labor due to manual harvesting nature of hemp. It is estimated that it costs $10,000-$20,000 to produce one acre of hemp in comparison to just $1,000 to produce one acre of corn.
Problems with pests and weeds.
Being sold seeds that are not feminized, costing time and labor for an undesirable plant gender.
Theft of crop due to hemp being mistaken for marijuana.
Unpredictable weather conditions, as we saw recently in Texas, as well as drought, rains, and heavy winds.
Sadly, many hemp farmers have failed in this new market rather than thrive, and most of the time due to factors outside of their control. It is time to save the U.S. agricultural industry and we still believe that hemp is the crop to do just that, as the industry could reach $10 billion in just two years. This is where GreenGro Technologies' 420 Rescue™ brand comes in.
New Revenues Generated from Launch of 420 Rescue™ Brand
420 Rescue™ is a brand housed under our CBD and Cannabis Ventures Divisions that is intended to help farmers across the United States that have experienced failure in the hemp and cannabis industries find the success they intended. We work with struggling farmers by addressing profit roadblocks such as genetics and breeding, cultivation practices, business modeling, and their go-to-market strategy. Farmers can reclaim their farms and their hard work with pride, while GreenGro Technologies generates one-time revenues in the form of products and services and, more importantly, a sizable percentage of all future harvests, structured in the form of a licensing agreement.
We are currently deploying our 420 Rescue™ brand on an industrial hemp project in Helmet, California, that will focus on developing and cultivating proprietary strains of industrial hemp with dominant concentrations of the cannabinoid CBG (cannabigerol) on a 40-acre property. We believe that CBG is the future of the hemp cannabinoid market and look forward to seeing the unique components of the 420 Rescue™ brand in action.
With all three of our divisions running on all cylinders, GreenGro Technologies is stronger and healthier today than ever before in its history, particularly with the prospect of cannabis legalization at the Federal level. As such, our Cannabis Ventures Division will intend to do for cannabis what CBD Ventures is doing for hemp.
We look forward to providing you with future updates on 420 Rescue™ and success stories from our clients and partners as we accelerate the rollout of our new marketing campaign for 420 Rescue™, beginning with the following corporate video featuring Miguel A. Nunez, Jr., the star of Juwanna Man, a blockbuster movie hit.
Chairman and COO
GreenGro Technologies, Inc."
About GreenGro Technologies, Inc.
GreenGro Technologies, Inc. (OTC: GRNH) is a vertically integrated provider of eco-friendly state-of-the-art technological solutions to the green industries. The Company is a trusted partner to the cultivation, extraction, production and retail aspects of the green market through a combination of three operating divisions: CBD Ventures, Cannabis Ventures and GenoBreeding. Each division is able to leverage the strengths of the other, creating a synergistic, efficient and highly profitable business model. Additional details can be found by visiting the Company's website at www.greengrotech.com.
For additional information about GreenGro Technologies and its solutions, please visit www.greengrotech.com or call investor relations at 323-380-4500.
(Safe Harbor Act: The Company relies upon the Safe Harbor Laws of 1933, 1934 and 1995 for all public news releases. Statements, which are not historical facts, are forward-looking statements. The company, through its management, makes forward-looking public statements concerning its expected future operations, performance and other developments. Such forward-looking statements are necessarily estimates reflecting the company's best judgment based upon current information and involve several risks and uncertainties, and there can be no assurance that other factors will not affect the accuracy of such forward-looking statements. It is impossible to identify all such factors. Factors which could cause actual results to differ materially from those estimated by the company include, but are not limited to, government regulation; managing and maintaining growth; the effect of adverse publicity; litigation; competition; and other factors which may be identified from time to time in the company's public announcements.)
Chief Executive Officer
GreenGro Investor Relations
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SOURCE GreenGro Technologies, Inc.