Roto-Gro improves access to European markets through dual listing

By Trevor Hoey. Published at Jul 9, 2018, in Biotech

Roto-Gro International Limited (ASX:RGI) has completed its dual listing on the Frankfurt Stock Exchange, and the company has appointed Deutsche Gesellschaft für Wertpapieranalyse GmbH ("DGWA") as its European Corporate Advisor.

The engagement of DGWA provides Roto-Gro with investor relations and corporate advisory services, positioning the company in the German-speaking media environment and broadening investment from European retail and institutional investors.

Managing Director of Roto-Gro, Michael Carli said, “The engagement of DGWA and the dual listing on the Frankfurt Stock Exchange are key milestones in our aspirations of building a European investor base and operational footprint.

“Boasting a population in excess of 750 million, the opportunities to capitalise on the changes to cannabis legislation and partnering with existing perishable food growers such as Agrarius are very exciting.”

Potential to capitalise on worldwide licences

As a backdrop, Roto-Gro has licenced, proprietary, patented, and patents-pending technology in the stackable rotary hydroponic garden space.

The company holds worldwide exclusive licenses for lawful medicinal and recreational cannabis markets.

Roto-Gro also holds worldwide non-exclusive licences for all other purposes including pharmaceuticals, nutraceuticals and perishable foods.

Although this remains a speculative stock and investors should seek professional financial advice if considering it for their portfolio.

Fits with expansion strategy in northern hemisphere

Fostering an understanding of its business in northern hemisphere markets is important for the company as it will improve its chances of raising capital in that region.

Of further significance is the fact that Roto-Gro has recently entered North America having recently acquired a revenue and earnings accretive business in Global Fertigation Solutions Inc (GFS).

Management has expressed its desire to expand further organically or through acquisition in other markets where it can find demand for its agricultural technology services.

These are particularly sought after by cannabis growers and GFS has a patent-pending specialized business line for water treatment and nutrient management in the viticulture, perishable foods and lawful cannabis space.

Müller has background in assisting other ASX companies

With several European countries at the forefront of the lawful medicinal and recreational cannabis markets, representation and access to capital markets in that region will be beneficial.

It is also worth noting that the chief executive of DGWA, Mr. Stefan Müller, has a strong track record in assisting dual listed ASX companies in Europe.

Mr. Müller holds the position of Non-Executive Director at Cape Lambert Resources (ASX:CFE) and European Lithium Ltd (ASX:EUR) both dual-listed on the Australian Securities Exchange and Bӧrse Frankfurt.

The engagement of DGWA has seen the European shareholder base of both EUR and CFE increase to 70 per cent and 30 per cent respectively.

Müller is also on the board of Agrarius AG, a publicly-listed German agricultural company which grows perishable foods in central Europe, providing high quality food products directly to wholesalers.

Agrarius could emerge as partner

In discussing the potential development opportunities he said, "We are very excited to be working with Roto-Gro as the company looks to advance its cutting-edge agricultural technology and investments in high value crop facilities.

“The European investor community is very conversant with the agricultural, engineering and technology space which places Roto-Gro in a unique position to capitalise on the strength of European investment in these sectors.

“Additionally, there is keen interest from Agrarius to partner in technology and urban farming opportunities in Europe.”

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.

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