Proactive Investors - Run By Investors For Investors

Roots Sustainable Agricultural Technologies gains $278,000 from second Chinese sale

The Root Zone Temperature Optimisation (RZTO) technology stabilises plant root zone temperatures, optimising plant physiology.
Roots Sustainable Agricultural Technologies gains $278,000 from second Chinese sale
RZTO provides increased growth and quality

Roots Sustainable Agricultural Technologies Ltd (ASX:ROO) has secured a new sale and installation agreement valued at $278,000 for an agricultural project in China.

It is the second commercial sale and installation agreement from Dagan Agricultural Automation, the company’s exclusive distribution partner in China.

The Israeli-based tech company will install Root Zone Temperature Optimisation (RZTO) heating and cooling systems in 10,000 square metres of greenhouses.

Five crops, including tomatoes, herbs and flowers, will be grown in these greenhouses.

Follows successful first agricultural project

This purchase order is payable to Roots in instalments during 2019, with the first instalment to be paid immediately.

The order follows successful completion of Roots’ first agricultural project with Dagan in 2018, where RZTO heating and cooling systems were installed in nine greenhouses.

This also formed part of Dagan’s distribution agreement with Roots which entails exclusivity conditional on US$19 million in sales over a five-year period.

“Great yield and quality increases”

Roots co-founder and CEO Dr Sharon Devir said: “This second order from Dagan further strengthens our presence in the world’s largest agricultural market and aligns with our long-term targets in the region.

“We’re already seeing great yield and quality increases from crops grown in the first project.

Second sale “validates confidence”

“This second substantial sale validates the confidence our distribution partner has in our root zone temperature optimisation technology.

“This is particularly important in a country which accounts for 53% (nearly 550 million tonnes) of global vegetable production.”

Devir said: “We believe China’s vast agricultural requirements offer significant long-term sales opportunities for Roots’ RZTO technology.

“We continue to focus on showcasing our technical capabilities and establishing sales networks in additional territories expecting that our sales activity with Dagan will increase dramatically in the coming years.”

Roots’ co-founder Boaz Wachtell told Proactive Investors recently the company’s proprietary technologies meant higher yields for farmers with lower energy use.

- Jessica Cummins

 

Join Proactive’s Crypto, Blockchain and Cannabis Telegram group here
View full ROO profile View Profile

Roots Sustainable Agricultural Technologies Ltd Timeline

Related Articles

medicinal cannabis concept
January 30 2019
Zelda has released its December quarterly report confirming multiple trials are on track.
cannabis
August 28 2018
Tidal Royalty provides capital to help grow licenced US cannabis firms in exchange for receiving a percentage of future top-line revenues.
cannabis extract
January 16 2019
The Kelowna, BC-based cannabis company specializes in the research, development, production, and testing of high-quality cannabis extracts and oils

© Proactive Investors 2019

Proactive Investors Limited, trading as “Proactiveinvestors United Kingdom”, is Authorised and regulated by the Financial Conduct Authority.
Registered in England with Company Registration number 05639690. Group VAT registration number 872070825 FCA Registration number 559082. You can contact us here.

Market Indices, Commodities and Regulatory News Headlines copyright © Morningstar. Data delayed 15 minutes unless otherwise indicated. Terms of use