Next Investors logo grey

Roots to dispatch first root zone shipment to China

|

Published 16-FEB-2018 09:20 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

Ag-tech disruptor, Roots Sustainable Agricultural Technologies (ASX:ROO) has made its first product shipment to China.

With the ink dry on a conditional US$19 million exclusive Chinese distribution agreement with Dagan Agricultural Automation, Roots made the first shipment of its patented root zone temperature optimisation (RZTO) technology.

Through the deal, Dagan can exclusively sell Root’s RZTO technology and associated products for three years throughout China, a country which accounts for nearly 550 million tonnes of total global vegetable production.

How much of this market ROOTS is able to tap into remains to be seen, so investors should seek professional financial advice if considering this stock for their portfolio.

The shipment includes formulated Green Root Zone pipes that allow farmers to distinguish between drip irrigation and root zone pipes. The pipes also contain an additional internal layer to prevent formation of algae in the water and will serve as the foundation for a global colour standard for root zone heating and cooling pipes.

roots cooling pipes

The pipes are manufactured by Roots and the company’s manufacturing partner ‘Weisman Friedman Group’.

“Our Green Root Zone pipes are the latest result in our ongoing R&D efforts to maintain innovation leadership in agriculture technologies,” said Roots Deputy CEO, Mr Ehud Reivitz, who has recently returned from the China project site where he conducted the initialisation phase of the installation.

Mr Reivitz is highly confident of the project’s smooth production.

“Our RZTO system will play a key role in this project being able to increase crop yields by addressing local land and water resource constraints common in the region. We also aim to use the Green Root Zone pipes to set a global unified green colour standard for root zone heating and cooling pipes.”

Dagan Agricultural Automation, one of the world’s leading global Ag-tech integrators, will use the RZTO technology to heat and cool the roots of crops such as vegetables, herbs and flowers.

The project begins the binding exclusive distribution agreement for the China market with Dagan conditional on $US19 million in sales over five years and as previously reported by Finfeed, the agreement can be expanded to other geographic markets.

roots chinese commercial sale

About RZTO

ROOTS’ RZTO is the only two-in-one, low energy, root zone heating and cooling system in the world and has been implemented in a range of pilot and commercialised plants internationally.

The RZTO technology has significantly increased crop yields to 80% and simultaneously reduced energy consumption by up to 60 per cent.

Further in-depth reading can be found at nexttechstock.com in the article: This Israeli Ag-Tech Stock Has Technology to Increase Crop Yields by 80%: Signs First Revenue Generating Deal in China.

In approximately a month’s time, the Israeli company will install two demo installations in Australia. It is also in discussions with regards to additional deals with some key players across Israel and the USA, as it looks to play a tangible role in helping address the global food supply/demand discordance.



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.