Newsletter
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December 2024
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December 2024
On this December 13th, we are excited to share important updates with our valued GreenState community.
This december Newsletter covers the following topics:
For the GreenState AG team, no task is impossible. When a strategic goal is set, our 100 employees work with a single vision: Get the job DONE.
This vision has led to another success. Our Founder and CEO traveled to Amsterdam, Netherlands, where he met with Growy Ltd.'s owners, founders, and executives. After two days of negotiations, farm visits, product tastings, and introductions, the termsheet figures were defined and signed in December.
Under the agreement, Growy and their Dutch banking partner will invest CHF 12,500,000 in the XL Vertical Farm in Switzerland, with GreenState AG contributing an additional CHF 2,500,000. This totals CHF 15,000,000 for the development of this cutting-edge mega farm.
At full capacity, the farm will produce up to 400 tonnes of lettuce, herbs, and microgreens annually. Utilizing fully automated processes, this state-of-the-art facility is designed to ensure high profit margins
GreenState, with its Swiss offtake partners, will guarantee 150 tonnes in annual offtake agreements. The company will also maintain marketing and branding activities, while supporting construction and operations for the next 10 years. Growy will provide technological expertise, with data shared at the partnership level.
The most exciting aspect of this joint venture is its future potential. The first XL farm in Switzerland serves as a pilot project, and if successful, GreenState and Growy plan to build 10 additional farms worldwide over the next five years. This ambitious goal requires
GreenState to contribute CHF 2,500,000 to CHF 3,500,000 per farm while supporting technological, marketing, and financing activities. Growy will provide hardware and technology expertise, while their Dutch banking partner will offer debt financing for 50-60% of
each project.
Our commitment is clear: work diligently to achieve this goal and expand our vertical farming business to 10 XL farms worldwide.
Our agile organizational model, centered around project leaders rather than traditional hierarchical bosses, has proven highly effective. This structure has eliminated communication barriers and enabled us to complete projects in record time. GrowBorg exemplifies this efficiency. In just seven months, we've progressed from the initial concept to the final product. While this timeline may seem ambitious, you can verify our progress from our first communications about GrowBorg earlier this summer.
The project has now reached its final phase. All hardware and software components have been built and tested, and we are transitioning to serial production. Component imports to Switzerland will be completed by the end of February, with assembly of the first 5,000 GrowBorgs beginning in March.
The GrowBorg Product Launch is scheduled for March 1st. Please note that seating will be limited, and the location will be announced soon.
**What is GrowBorg?**
GrowBorg is a gamified home-growing device that connects to your mobile application through the "Mesh 5 communication protocol" and links users within the GrowBorg community. In an industry first, 10,000 home-growing devices will connect to two industrial vertical farms with one goal: creating the largest artificial intelligence learning models for the agtech industry. GrowBorg will be the largest crowd-sourcing device in the agtech sector to date. While we must keep certain details about the device and application under wraps until March 1st, we're excited to share a video showing how we decorated the GreenState Christmas tree with our custom-developed motherboards—a milestone in consumer tech history.
Digital transformation presents challenges but remains essential. We've received numerous inquiries about GreenState's ERP system and our entry into this sector.
Here's our vision: GSIRA isn't a typical ERP—it's a "Consumer Centric Platform" bridging the digital gap between companies and their clients. This platform enables direct company-customer communication, bringing internal resources and customers together. It's specifically designed for small and medium enterprises that can't afford big tech companies' expensive fees.
This solution will help family businesses compete effectively in global markets. Built on microservices architecture, the software includes various modules: account profiles, portfolios, onboarding, invoicing, credit card payments, ecommerce, mob-commerce, contract signing, CRM, administrator functions, user accounts, and more. Our newest feature, to be tested with GrowBorg, is an internal social media component. This gives SMEs their own digital customer community, reducing dependence on major social media platforms.
Even before launch, we've sold five licenses this year, generating nearly CHF 100,000 in revenue.
The GreenState project attracted me because it pursues the greater good—growing food locally and sustainably without pesticides. Beyond profit, it sets an example for future generations by balancing capital gains with corporate responsibility. I cherish my role at GreenState and our corporate culture, though my position sometimes makes me the voice of prudence.
As a board member and Chief Financial Officer of this young company, I oversee finances where budgets and administrative roles are still evolving. While we embrace agility, my responsibility is to maintain the highest standards in finances and regulatory compliance. This includes optimizing funds, managing costs, and maximizing profitability.
"My corporate administrative duties include overseeing capital transactions, managing banking relationships, and ensuring proper capitalization for a potential exit strategy.
Our rapid growth necessitates additional internal staff, allowing me to focus on strategic leadership and guide the company toward our planned Initial Public Offering. This goal aligns with our XL Farm development, global expansion, and upcoming project launches."
For operational cash flow, we're targeting 10X annual growth, aiming to reach CHF 10,000,000 in 2025.
The current financial round remains open until December 31, 2024, for investors interested in share subscription under the Kapitalband Law at CHF 18 per share. Notary appointments are scheduled for January, pending document approval, with digital share delivery expected in early February 2025
This financial round is capped at CHF 5,400,000 total capital, following a "first come, first served" policy, with priority given to existing shareholders. All subscription agreements require physical signatures and must be mailed to: GreenState AG, Pflanzschulstrasse 3, 8400 Winterthur, Switzerland.