SOURCE: Advanced Growing Systems

January 04, 2007 09:20 ET

Advanced Growing Systems CEO Addresses Shareholders

ATLANTA, GA -- (MARKET WIRE) -- January 4, 2007 -- From the Desk of Mr. Chris Nichols, CEO of Advanced Growing Systems Inc. (PINKSHEETS: AGWS): I wanted to take a brief moment and bring you up to speed on our progress. As we enter a New Year, we have accomplished many things since we formally began operating in April of 2006...

Advanced Nurseries, Inc. (ANI) has grown from a start-up to arguably the fastest growing commercial nursery in the history of the Southeast. The depth of management talent has been the key to our early success, and will remain our strongest asset to the objectives for 2007. ANI continues to outperform its original budget and projections. They will be holding formal grand openings at our second and third locations early in the first quarter of 2007. We expect nursery sales to approach or exceed $1,500,000 per month in both March and April. By the end of the second quarter of '07, we project four massive operations running $1,600,000-$2,000,000 per month in revenue pulling a solid 32-35% Gross Profit Margin (GPM). Our guidance for ANI for 2007 should be to achieve gross revenues of $19,000,000, with net income approaching $1,400,000.

Organic Growing Systems, Inc. (OGSI) is completing the purchase of our contract fertilizer manufacturer located in Mississippi. This acquisition will not only substantially increase our GPM for OGSI, but will let us immediately tackle larger buyers we temporarily shied away from as we were ramping our production capacity. Developers, contractors, growers, specialty retailers, etc. have shown extreme recent interest in our product. We have gone from taking Purchase Orders for pallets, to taking Purchase Orders for truckloads. Dr. Bill Evans (Mississippi State University) has tested our organic fertilizer head to head with several commercially successful synthetics in addition to other commercially sold organic brands. Our product exceeded these competitors in performance in virtually every category. We have an engineering team arriving at the facility in early 2007 to make some necessary changes. These changes should allow us to push immediate capacity north of 1000 tons per month or gross sales $400,000 per month. Additional capacity will be added as needed. Product margin has jumped from 20% to over 50% GPM due to our plant acquisition, better sourcing of raw materials and packaging. Our guidance for OGSI is to achieve gross sales of $3,000,000 and net profits in excess of $400,000.

As far as the parent company, AGSI is currently completing its audit with regional accounting firm Whitley Penn. We plan to file our Form 10-SB with the Securities and Exchange Commission as soon as possible in January after review by our securities counsel. Our expectation is to be listed on the OTCBB by early in the second quarter of '07. This is an important step for our company and our investors as we will be able to elicit institutional support and participate in a more liquid/transparent marketplace. My plan is then to immediately position the company for listing on a major National Exchange such as the AMEX, NASDAQ or AIM by middle to late 2007.

I often speak about shareholder value. This value is derived from effective growth, profitability, exposure and most importantly, liquidity. I would like to see Advanced Growing Systems, Inc. end 2007 with net profits of $0.07-0.11 per share. Our 2008 projections put us in the $0.18-0.22 per share range. We are on a very solid path to deliver the above growth projections over the foreseeable future. Although our growth rate demands a premium to the industry average, if we achieve these results and use a broad market PE multiple tied to growth of 40-50 times earnings, we could foresee a stock price of $3.00-$3.50 per share in the foreseeable future.

We plan to hold a company conference call in early February to openly discuss 2006 and our 2007 guidance. I appreciate the confidence and look forward to delivering unparalleled success.


Chris J. Nichols
President and CEO
Advanced Growing Systems, Inc.
About AGSI:

Advanced Growing Systems, Inc. ("AGSI" or the "Company"), founded in 2006, is the parent company of Organic Growing Systems, Inc. (a scientifically advanced Organic fertilizer manufacturer) and Advanced Nurseries, Inc. (a wholesale group of Commercial Nurseries located in the Southeastern US). AGSI is dedicated to providing its shareholders significant value and is directly involved in the $48 Billion fertilizer market and the $66 Billion Green Industry. AGSI was founded by a skilled group of industry professionals each with over 20 years of direct experience in the "Green" industry. As profitability is paramount, we intend to maintain a combined GPM of 35-40% for Organic Growing Systems, Inc. and Advanced Nurseries, Inc. For more information, please visit

In order to receive regular updates on AGWS, please click on the following link:

FORWARD-LOOKING STATEMENTS: Statements about AGSI's future expectations, including future revenues and earnings, and all other statements in this press release other than historical facts are "forward-looking statements" within the meaning of section 27A of the Securities Act of 1933, Section 21E of the Securities Exchange Act of 1934, and as the term is defined in the Private Litigation Reform Act of 1995. AGSI's actual results could differ materially from expected results. AGSI undertakes no obligation to update forward-looking statements to reflect subsequently occurring events or circumstances. Should events occur which materially affect any comments made within this objective; AGSI will appropriately inform the public.

Contact Information

  • Investment Banker:
    Tom Rubin
    Westcap Securities, Inc.
    18201 Von Karman Ave. Suite 550
    Irvine, CA 92612

    Investor Relations:
    InvestSource Communications, Inc.
    7451 Warner Ave. #E Suite 342
    Huntington Beach, CA 92647
    (949) 200-7669
    Fax: (949) 209-8699
    E-mail: Email Contact