ASX AgTech junior making inroads in North American cannabis sector

By Meagan Evans. Published at Jun 21, 2019, in The 420 Report

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.”

View Our Investment Portfolios

S3 Consortium Pty Ltd (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 only. Any advice is general advice only. Neither your personal objectives, financial situation nor needs have been taken into consideration. Accordingly you should consider how appropriate the advice (if any) is to those objectives, financial situation and needs, before acting on the advice.

Conflict of Interest Notice

S3 Consortium Pty Ltd does and seeks to do business with companies featured in its articles. As a result, investors should be aware that the Firm may have a conflict of interest that could affect the objectivity of this article. Investors should consider this article as only a single factor in making any investment decision. The publishers of this article also wish to disclose that they may hold this stock in their portfolios and that any decision to purchase this stock should be done so after the purchaser has made their own inquires as to the validity of any information in this article.

Publishers Notice

The information contained in this article is current at the finalised date. The information contained in this article is based on sources reasonably considered to be reliable by S3 Consortium Pty Ltd, and available in the public domain. No “insider information” is ever sourced, disclosed or used by S3 Consortium.

Australian ASX Small Cap stocks | Why is Australia’s leading small cap publication

Founded seven years ago, is Australia’s leading and longest standing website for investor and finance news, education and expert opinion.

Published by StocksDigital, Finfeed was created to report daily on the comings and goings of ASX listed stocks in the small cap market.

As the first digital publication dedicated specifically to this space, Finfeed soon became the most trusted publication in the market, quickly garnering over two million page views – a number that continues to rise. provides its readers with informative articles that tackle the latest in market moving #ASX small cap news, plus exclusive content you won’t find anywhere else. It is aimed at those with an interest in investing, market education, company performance, start-ups and much more. is the only media organisation operating under the strength of a Financial Services License and is backed by leading journalists and analysts all with brands of their own.

The website aims to inform, educate and entertain with content that drills down into the heart of financial matters.

Finfeed is a leading source of investor and market information, with everything investors need to know about how to invest written in a way that anyone can understand. 

Over the years, the website has expanded beyond exclusively reporting on small caps, to profile Australia’s leading ASX listed small, mid and large caps as well as some of the country’s most successful CEOs and business leaders to find out what makes them tick.

Every day you will find fresh content covering:

Fast Facts

Over 4,000 articles published

Over 2.3 Million Page Views and counting

Over 10,000 followers on social media

Subscriber list growing by 2% monthly

Thanks for subscribing!