Under the terms of the agreement, Fresh Local Produce of Ohio gains access to Greengro’s proprietary controlled environment agriculture (CEA) growing systems and techniques, and Greengro earns a five percent royalty on all gross produce (primarily lettuce) sales made by the greenhouse.
Fresh Local Produce of Ohio’s state-of-the-art facility is part of its newly acquired Greengro Glass House Franchise, which includes Greengro designing and building the greenhouse, installing hydroponic grow systems and equipment, training operational staff and assisting with growing, harvesting and selling crops. The CEA greenhouse is climate controlled by a positive pressure HVAC system, in a fully automated hydroponic irrigation system.
The Greengro Glass House Franchise is offered with a purchase order to acquire the entirety of each annual crop, primarily lettuce, harvested by a facility. Financing options are available through preferred lenders.
End user customers for Greengro’s franchise program include companies in the field of leafy green produce production and distribution, e.g., lettuce producers and processors. Greengro plans on generating a recurring revenue stream from several scheduled three-acre Greengro Glass Greenhouse Franchise locations across the U.S.
“This initial transaction with Fresh Local Produce of Ohio is an exciting development for Greengro Technologies,” said Greengro CEO James Haas. “We are very pleased to be working with Greengro’s finance sources, which have been key in bringing this rewarding partnership to life.”
The sale of a Greengro Glass Greenhouse Franchise to Fresh Local Produce of Ohio follows on the heels of Greengro Technologies’ March 2017 acquisition of a 51 percent majority interest in Biodynamics LLC, an Akron, Ohio-based leader in controlled environment agriculture (CEA), renewable energy and consumer hydroponics. As part of that transaction, Biodynamics’ CEO Tim Madden was named Greengro Technologies’ COO.
Stated Madden: “Greengro’s recent merger with Biodynamics is yielding record sales for Greengro Technologies, as evidenced by this multi-million dollar deal with Fresh Local Produce of Ohio.”
As a result of this sale to Fresh Local Produce of Ohio, Greengro’s revenues have reached the range of a minimum of $8 million for 2017, according to Haas, who said that Greengro 2016 revenues were approximately $1.1 million.
“This transaction boosts Greengro into record setting income territory for the company,” said Haas. “Our acquisition of Biodynamics was definitely a decisive move toward Greengro’s strategy for significant advancement.”
The market potential for growing lettuce in greenhouses is significant at this stage, noted Haas. He said that advanced CEA facilities can annually produce approximately nine million heads of fresh, crisp lettuce within three acres. With an estimated per-head value of $.75, potential revenues from the greenhouse production of lettuce alone could be very lucrative.
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