Has Roots become the ‘Afterpay’ of the agricultural industry?
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
Having recently raised $2.5 million, illustrating investor interest in the company, Roots Sustainable Agricultural Technologies Limited (ASX:ROO) has now executed a strategic agreement with major retail and marketing company Amir Marketing and Investing in Agriculture Ltd, (Amir) to promote and sell ROO’s proprietary Root Zone Temperature Optimisation (RZTO) technology in Israel.
The agreement also includes a ‘Buy Now – Pay Later’ component, which will lower the barriers of entry for farmers and expedite uptake.
ROO is based in Israel, and the group has developed proprietary know-how and patents to bring maximum benefit to farmers through their two-in-one root zone heating and cooling technology and off the grid irrigation by condensation technology.
Amir sells a wide range of agricultural products and solutions to private farmers and agricultural businesses in Israel. The group has 25 retail stores and trade centres across all major agricultural areas in the country and service approximately 7,500 customers per annum.
Under the agreement, Amir will promote the ROO’s RZTO technology in its 25 stores and offer a ‘Buy Now - Pay Later’ plan, which will allow consumers to spread payments for the technology over 12 to 24 months.
Amir will be responsible for cash collections and will make payments to ROO up to 60 days from the signing of a purchase order.
The offer is already gaining traction with a first sale valued at A$14,300 for an RZTO system sold to a Peonies grower in North Israel recently installed.
Buy now-pay later offer to assist in entering new markets
This development marks one of the first ‘Buy Now - Pay Later’ plans introduced into the agriculture sector and highlights the company’s innovative approach towards business growth.
Roots is confident that the introduction of this payment plan will significantly decrease barriers of entry for consumers in Israel and expedite product uptake.
To further its global reach and drive product demand, Roots is pursuing additional agreements in international target markets with ‘Buy Now - Pay Later’ components.
Pleasingly, Roots is witnessing increasing demand for its RZTO technology in Israel, as well as in multiple international markets.
The company has an established in-country supply chain which can fulfil any orders from potential customers quickly and efficiently.
A good fit with traditional receivable terms in the agricultural industry
Commenting on the significance of this development, particularly in terms of optimising product accessibility, Roots executive chairman and chief executive, Boaz Wachtel said, “This agreement is a significant milestone for Roots and the agricultural sector more broadly, as it marks one of the first ‘Buy Now – Pay Later’ payment plans for consumers in the space.
“The agreement with Amir provides the company with another sales channel into the Israeli market, as well as visibility for our solutions in over 25 retail stores throughout the country at little expense.
‘’The payment agreement we have struck with Amir will make our technology much more accessible to farmers and other growers throughout Israel as the payment terms align well with farmers’ receivable terms.
“As the world continues to transitions to more ‘Buy Now – Pay Later’ plans for goods and services we will continue to pursue similar agreements with our distribution partners.
‘’We anticipate that this will assist in driving demand for our products in international markets.
Roots is well positioned with a strong supply chain and it has number of initiatives underway to drive sales domestically and in a number of international markets where RZTO is being well-received and accepted.
If Roots can achieve success in Israel using ‘Buy Now - Pay Later’ terms, the readily transferable model suggests the company can tailor this type of plan to other countries.
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.
