Starting coleus seeds

Bakersfield, CA

My coleus seed has sprouted in cardboard egg cartons. I used home made seed sprouting mix made with perlite, vermiculite and peat moss, which is fine except that the peat moss turned out to be quite chunky. Do I need to use a fertilizer now on my 1/2" seedlings to encourage root growth? And do I need to start thinning the seedlings to one per egg cup? Will the egg cups disintegrate if I transplant the seedlings directly to the garden when they plants become a little more bushy and an inch or so tall?

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