New deal sees Roots formally enter medicinal cannabis market
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.