ORLANDO, Fla., Sept. 27, 2016 (GLOBE NEWSWIRE) -- Recent news from GroGenesis, Inc. (OTCQB:GROG), both of the share structure and the business development varieties, are cause for consideration by investors in the small cap arena where dilutive events wreak havoc on a share price.
GroGenesis is positioned to be a potential beneficiary of the rapidly growing sub-sector of sustainable agriculture with its proprietary organic surfactant known as AgraBurst PRO™. The company's recent news has all the hallmarks of a new management team completing the basic tasks of tightening up its share structure with a head-turning reduction of 25.5 million shares and a lock-up of an additional 12.5 million shares for a period of three years, thereby reducing its public float to just 8.8 million shares. It is worth noting that the currently stated count of 91 million shares does not reflect the 25.5 million share reduction yet. According to the company, the shares outstanding are expected to be updated in its fiscal Q-2 SEC filing.
It is certainly a strong comment on a new management team that takes control of a company and begins with reducing the amount of shares outstanding. We believe that the most recent news last month announcing the exclusive blender of AgraBurst PRO™, United Agricultural Services (UAS), is the first sign of actual fundamental news from the new management team.
And this development could not be more timely with the interest in organic, sustainable agriculture spreading throughout the agriculture sector. The company’s major target market is the organic and non-GMO food production sector - a sector that is growing as more conventional food growers convert, or transition, to the non-GMO and organic production model to take advantage of the rising consumer demand and premium produce pricing. In 2014, there were almost 14,100 organic farms generating $5.5 billion in revenue from organic products (60% of these sales was from organic crop sales - an increase of 69% from 2008 to 2014). According to a study by Clive James in 2015, the global hectare count in GMO production declined from 2014 to 2015, the first decline since 1996 (Source: http://bit.ly/2bikQcA). The organic market is a huge opportunity for GroGenesis’s AgraBurst PRO™ - a specialized patented, premium organic agricultural input formulated of high quality food-grade ingredients which enhance the health of the soil while stimulating plant growth and increasing crop yields.
Another large market that GroGenesis is pursuing is the turf grower and lawn maintenance market. Groundskeepers for stadiums, parks, golf courses and residential lawns have been challenged for years to grow healthy green lawns, sports fields and gold courses, but unfortunately have become reliant upon the heavy use of chemical fertilizers and herbicides. This environmentally unfriendly regimen can be replaced through the use of an organic input like AgraBurst PRO™. The company believes this market is largely untapped by organic lawn care providers and represents a huge opportunity for revenue growth.
GroGenesis’s new and improved share structure may be off the radar as is the company’s overall market opportunity. With a little good news, the market may well take the time to note the fundamental progress in their business plan. At the minimum, investors may be well rewarded to monitor the company for more corporate development news.
About GroGenesis, Inc.
Headquartered in the heart of the US Farm Belt, Sioux Falls, South Dakota-based GroGenesis is an agricultural services enterprise offering food producers a revolutionary, proprietary, all-natural, non-GMO nano-surfactant that enhances soil and crop health and reduces potential harm the health of farm workers due to its non-toxic properties. GroGenesis’s flagship product, AgraBurst PRO™, is an all-natural, organic, non-GMO agricultural input which optimizes the ability of the plant to more efficiently use the added nutrients incorporated in fertilizers resulting in less fertilizer being required. The application of AgraBurst PRO™ can begin the process of improving the health of the soil while minimizing the use of conventional chemical agricultural inputs. For more information, please visit the company’s website at www.GroGenesis.com.
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