ASX pot-stock RotoGro scores key fertigation acquisition
Published 17-MAY-2018 12:09 P.M.
|
3 minute read
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
Cannabis tech company, RotoGro World Wide (ASX:RGI), announced today that it is acquiring the fertigation assets and ongoing contracts of Hanson’s Water Treatment Inc., via its wholly owned subsidiary, Global Fertigation Solutions (GFS).
This acquisition gives RGI leverage to Hanson’s specialised fertigation business line for water treatment and nutrient management in the viticulture, perishable foods and legalised cannabis space.
Fertigation is the injection of fertilizers, soil amendments, and other water-soluble products into an irrigation system. Notably, fertigation is paramount to modern hydroponics, making this acquisition a pivotal one for RGI, whose business is centred around stackable hyroponics garden systems.
The fertigation solution developed by the Las Vegas-based Hanson is a patent-pending, fully-automated nutrient delivery system, which purifies source water and adds client-specified recipes of nutrients to maximise yields and optimise cost efficiencies during the growth cycle of each crop.
To date, Hanson Fertigation has successfully provided design solutions, installations and ongoing service for more than 12 licensed lawful cannabis facilities in the State of Nevada.
Hanson president, Stephen C. Everett, commented: “We are very excited with the acquisition by RotoGro as it will accelerate the global expansion of our patent-pending fully-automated nutrient delivery system.
“With more than 30 years of market-proven experience working in the water treatment, agriculture and nutrient space, starting with viticulture and perishable foods, we have been able to drive risk reduction and economies of scale, integrating technology and science to the art of growing.”
RGI managing director, Michael Carli, said: “The acquisition of Hanson Fertigation is a key milestone in building the full suite of capabilities to provide our customers with a turnkey solution from ‘concept to harvest’. The fertigation business is the first cornerstone in our third vertical that provides solutions to all forms of agriculture: from field crops to greenhouses to flat deck hydroponics.
“This acquisition expands the RotoGro Rotary Garden System capabilities on an enterprise level,” added Carli. “The opportunities for revenue growth are immense, with secured orders to date in excess of USD$1M for 2018. Building on the focused penetration in Nevada, the opportunities across all agricultural applications globally are very exciting”.
It’s worth noting here that this is an early stage play and investors should seek professional financial advice if considering this company for their portfolio.
The acquisition sees RGI acquiring 100 per cent of the Hanson Fertigation assets, intellectual property, ongoing contacts, key personnel, industry know-how and business goodwill.
The acquisition consideration is equivalent to three times Hanson Fertigation’s 2017 financial year EBITDA. The agreed valuation will be paid through the issue of 5,000,000 fully paid ordinary shares in the capital of RGI.
General Information Only
This material has been prepared by StocksDigital. StocksDigital is an authorised representative (CAR 000433913) of 62 Consulting Pty Limited (ABN 88 664 809 303) (AFSL 548573).
This material is general advice only and is not an offer for the purchase or sale of any financial product or service. The material is not intended to provide you with personal financial or tax advice and does not take into account your personal objectives, financial situation or needs. Although we believe that the material is correct, no warranty of accuracy, reliability or completeness is given, except for liability under statute which cannot be excluded. Please note that past performance may not be indicative of future performance and that no guarantee of performance, the return of capital or a particular rate of return is given by 62C, StocksDigital, any of their related body corporates or any other person. To the maximum extent possible, 62C, StocksDigital, their related body corporates or any other person do not accept any liability for any statement in this material.
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.
