ASX AgTech junior making inroads in North American cannabis sector
Hey! Looks like you have stumbled on the section of our website where we have archived articles from our old business model.
In 2019 the original founding team returned to run Next Investors, we changed our business model to only write about stocks we carefully research and are invested in for the long term.
The below articles were written under our previous business model. We have kept these articles online here for your reference.
Our new mission is to build a high performing ASX micro cap investment portfolio and share our research, analysis and investment strategy with our readers.
Click Here to View Latest Articles
This year has been a “record breaking year” for the AgTech industry that’s seen US$16.9 billion in funding spread across 1450 investments. According to a recent Forbes article, most of these investments are located in the US — California specifically, with $5 billion worth of deals.
As for Australia, Finistere Ventures, an agtech-focused venture firm, says that, “Australian agriculture is expected to make further inroads into export markets around the world and become a A$100 billion industry by 2030 — matching the country’s mining and construction sectors — but these ambitions cannot be met without further AgTech investment”.
That view is supported by local agribusiness leaders who predict that demand for agricultural technology will explode in coming years, and start-ups should work more closely with wealthy and intelligent farmers for ideas and funding.
Western Australian Department of Primary Industries and Regional Development executive director Liam O’Connell says the AgTech sector is “set for massive growth because it could help farmers solve basic problems around reducing costs, inefficiency, improving profitability and reducing impact on the environment”.
Roots secures further North American sale
One ASX AgTech junior is making inroads to the North American cannabis sector.
Roots Sustainable Agricultural Technologies Limited (ASX:ROO) today announced that it has made another sale of its Root Zone Temperature Optimisation (RZTO) heating and cooling system in California.
The sale was made to large organic cannabis producer, Private Reserve Originals (PRO), which owns a 300-acre certified organic farm in Santa Barbara County in southern California where it grows crops in open-fields and hoop houses.
The sale will involve the installation of Roots’ proprietary RZTO cooling and heating technology in growbags and pots within hoop houses of varying sizes. The sale also includes ROO’s monitoring and control system, with costs for this service charged on a monthly basis.
Valued at US$30,000 (A$43,450), the sale is an initial paid commercial demonstration. While this is just a small sale in dollar terms, it has the potential to lead to a much larger installation in the future. This was recognised by the market this morning with the share price gaining 34%.
The latest RZTO sale represents Roots’ fourth in North America since March, further validating the company’s strategic focus on this region, capitalising on the growing recreational and medicinal cannabis market and the trend for outdoor and hoop house crop cultivation.
Roots’ two-in-one Root Zone Temperature Optimisation (RZTO) heating and cooling technology optimises plant physiology for increased growth, productivity and quality by stabilising the plant’s root zone temperature.
The result significantly increased yields, increased growing cycle planting options and improved quality. It also mitigates against extreme heat and cold stress, while energy consumption is significantly reduced by stabilising and optimising the root’s zone temperature. For farmers, this means they can sell their crop at a premium.
Roots CEO, Dr Sharon Devir said, “Roots continues to focus on increasing sales activity in North America, capitalising on the trend for outdoor and hoop house crop cultivation.
“PRO will initially use Roots’ patented root zone technology to cool plant roots during the American summer, minimising the impact of external weather conditions and overnight temperature drops to increase crop quality and yield. During autumn and winter, Roots’ RZTO heating technology will be used to stabilise crops at optimal temperatures. This initial paid commercial demonstration has the potential to lead to a much larger installation in the future.”
General Information Only
S3 Consortium Pty Ltd (S3, ‘we’, ‘us’, ‘our’) (CAR No. 433913) is a corporate authorised representative of LeMessurier Securities Pty Ltd (AFSL No. 296877). The information contained in this article is general information and is for informational purposes only. Any advice is general advice only. Any advice contained in this article does not constitute personal advice and S3 has not taken into consideration your personal objectives, financial situation or needs. Please seek your own independent professional advice before making any financial investment decision. Those persons acting upon information contained in this article do so entirely at their own risk.
Conflicts of Interest Notice
S3 and its associated entities may hold investments in companies featured in its articles, including through being paid in the securities of the companies we provide commentary on. We disclose the securities held in relation to a particular company that we provide commentary on. Refer to our Disclosure Policy for information on our self-imposed trading blackouts, hold conditions and de-risking (sell conditions) which seek to mitigate against any potential conflicts of interest.
Publication Notice and Disclaimer
The information contained in this article is current as at the publication date. At the time of publishing, the information contained in this article is based on sources which are available in the public domain that we consider to be reliable, and our own analysis of those sources. The views of the author may not reflect the views of the AFSL holder. Any decision by you to purchase securities in the companies featured in this article should be done so after you have sought your own independent professional advice regarding this information and made your own inquiries as to the validity of any information in this article.
Any forward-looking statements contained in this article are not guarantees or predictions of future performance, and involve known and unknown risks, uncertainties and other factors, many of which are beyond our control, and which may cause actual results or performance of companies featured to differ materially from those expressed in the statements contained in this article. S3 cannot and does not give any assurance that the results or performance expressed or implied by any forward-looking statements contained in this article will actually occur and readers are cautioned not to put undue reliance on forward-looking statements.
This article may include references to our past investing performance. Past performance is not a reliable indicator of our future investing performance.
