Roots Sustainable Agricultural Technologies Ltd (ASX:ROO) has secured a new sales contract for its proprietary Root Zone Temperature Optimisation (RZTO) technology valued at A$51,700 from Puerto Rico-based cannabis farm Caribbean CBD Farm Inc.
This sales contract consists of more than 2000 units of Roots’ revolutionary probe product, which will be inserted into pots located around the farm.
The technology will utilise a heat pump, circulation pump and an electrical panel, which will be deployed to heat and cool the roots of the cannabis plants.
Mobile and PC application developed by Roots provides the farmers with real-time feedback from sensors of temperatures and functionality readings of the system.
Validation of RZTO technology
Roots executive chairman and CEO Boaz Wachtel said: “This sales agreement with Caribbean CBD Farm provides further validation of the considerable benefits that our RZTO and probe technology bring to the cannabis industry.
“System installation is soon underway and we expect it to be finalised in the coming weeks.”
The technology
The Roots heat exchange probe technology was designed to be inserted into the tops of plant pots and grow bags to significantly simplify working procedures and ease of operations.
RTZO technology optimises plant physiology for increased growth, productivity and quality by stabilising the plant’s root zone temperature year around.
Previous test-work has shown that the company’s probe technology increases cannabis yields by 20% or more.
Additional sales in the cannabis cultivation sector are anticipated and this is the largest and most prospective market for RZTO globally.
Large addressable market
Puerto Rico represents another large addressable market for Roots.
In 2015, medicinal cannabis was made legal and since than Puerto Rico has been witnessing a steady increase in patients utilising it for treatment.
The territory now has 31 licensed cannabis producers, providing a number of potential opportunities for Roots.
International sales growth
Wachtel added: “We are also progressing a number of business development initiatives across the region and international markets to drive sales growth.
“Roots has a strong business development pipeline and we look forward to updating shareholders on progress in the coming weeks.”