Next Investors logo grey

New deal sees Roots formally enter medicinal cannabis market


Published 09-JUL-2018 11:55 A.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

Roots Sustainable Agricultural Technologies Limited (ASX:ROO) has this morning informed the market it has reached an agreement to use its technology to conduct a world-first ‘proof of concept’ to cool medicinal cannabis roots grown in a greenhouse in northern Israel.

ROO will be collaborating with one of Israel’s leading medical cannabis growers, Canndoc Ltd, a company known for its expertise in quality production and collaboration with leading edge companies and laboratories.

During the 2018 summer, ROO’s technology will be used to cool the root zone of cannabis plants throughout the vegetation stage and examine its multiple effects on crop yield, quality and duration of the growing cycle as well as cannabinoid content and composition.

This marks a world-first root zone cooling proof of concept on cannabis.

As Finfeed reported last week, ROO is currently making its debut into the thriving US$7 billion US cannabis market, with the announcement last week that it was conducting a pilot using its patented Root Zone Temperature Optimisation (RZTO) technology alongside American Farms Consulting LLC (AFC) in Washington.

The worldwide medicinal cannabis market is projected to reach US$31.4 billion by 2021.

ROO CEO, Dr Sharon Devir said, “This cannabis proof of concept is the first time our system is being used on Cannabis — a non-edible crop. It should demonstrate how universal our technology is and how it can be applied to a diverse range of crops.

“Like other crops where we use this technology, the purpose of installing the system is to optimize the root zone temperatures — to cool or warm when necessary — until the optimum temperature of the cannabis plant is reached and maintained.

“We expect the system to successfully cool the root systems of the cannabis seedlings, provide increased protection against heat, and stabilise the temperature range between night and day. It is expected to lead to a shortened growing cycle with a significant economic value,” she said.

ROO’s proof of concept will provide a significant opportunity for the benefits of the company’s root zone technology to be exhibited internationally, and in the context of intense competition in the highly-regulated medicinal cannabis sector which requires higher yields and plant quality to meet exacting medicinal standards and lower costs.

It should be noted, however, that this is an early stage tech company and success is no guarantee. Investors should seek professional financial advice before making an investment.

Canndoc has been a leader in the Israeli medical cannabis industry since 2008, producing cannabis-based products under license from the Israel Ministry of Health following strict protocols and standards. The company has expertise in breeding, genetics, tissue culturing R&D, production and harvesting methods and protocols for dehydration and curing of cannabis plants including the extraction of specific active ingredients.

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.