Two Rivers Water & Farming (TURV) and their subsidiary (GrowCo) are in the final stages of completing their first high-tech, industrial-scale greenhouse for growing marijuana in Colorado. Using agricultural know-how and experience with logistics, they build modern, high-efficiency greenhouses that help cannabis farmers double their output at half the cost versus conventional warehouse growing operations.
Their first facility has a 91,000 sq ft greenhouse and 15,000 sq ft processing warehouse. When the second greenhouse is completed, GrowCo will have 180,000 square feet of grow space and a total of 360,000 square feet is expected in Colorado by the end of 2016. This will make GrowCo the largest operator of cannabis greenhouse facilities in the country.
Just today they announced that their partner Suncanna had their license to grow marijuana approved in Pueblo County, Colorado. This is a major step forward for GrowCo in terms of monthly revenues and cash flow. I expect a significant improvement to their financials beginning next quarter.
GrowCo also has plans to expand outside of Colorado and has already signed a binding agreement to provide a 6 acre state of the art greenhouse to an existing greenhouse grower in Maryland. Under the terms of the agreement, GrowCo will build up to six acres of greenhouse and provide administrative services to the grower, if and when, the grower obtains a cannabis license in Maryland. Additionally, as part of the deal, the grower will be given a region consisting of Delaware, New Jersey, New York, Pennsylvania, Virginia and West Virginia to manage and develop.
John McKowen, CEO of GrowCo, stated:
“GrowCo provides cannabis growers with the infrastructure and services to be the lowest cost, highest quality natural grower of cannabis in their state without GrowCo ‘touching the plant.’ We adjust the technological makeup of each greenhouse so that it’s perfectly suited to deal with the state’s climate. By organizing our greenhouse expansion into regions of the United States we can leverage our skillset with local greenhouse entrepreneurs to meet the needs of cannabis growers in states adopting cannabis laws.”
