Roots executes inaugural commercial sale for A$323k
Roots Sustainable Agricultural Technologies (ASX:ROO) has signed its first commercial sale with Dagan Agricultural Automation, a leading global agtech integrator.
The transaction will initiate cooperation for additional projects in the 550 million tonne China vegetable production market.
Dagan has purchased the company’s innovative root zone heating and cooling systems at an agreed price of A$323,000 (US$257,000), with the sale payable in three instalments.
The first instalment is payable upfront, which will generate immediate revenue for ROO. The second instalment will be due upon the commencement of the installations, with the final instalment expected to be executed in late April, due upon completion of installation.
Project installation will begin in early March, and will enable Dagan to install and have exclusive use of Roots’ patented Root Zone Temperature Optimisation (RTZO) technology at one of its projects in China.
That said, this is an early stage play and as such any investment decision should be made with caution and professional financial advice should be sought.
ROO CEO and Co-founder, Dr Sharon Devir, spoke on the encouraging sale: “This initial sale to Dagan is a significant milestone for Roots as we will now have a presence in China — the world’s largest agricultural market.
“This transaction is expected to lead to additional significant projects in China which now accounts for 53 per cent of global vegetable production. We are also looking at similar types of projects in the Asian region. Dagan’s order is a professional endorsement of the disruptive nature of Roots’ innovative technology.”
What is Root Zone Temperature Optimization (RTZO)?
Root Zone Temperature Optimization optimises plant physiology for increased growth, productivity and quality by stabilising the plant’s root zone temperature. Leveraging the principle of Ground Source Heat Exchange (GSHE), Roots installs a closed-loop system of pipes.
The lower part is installed at a depth where soil temperature is stable and not affected by weather extremes, and the upper part in the target crop’s root zone just below the soil surface.
Water flowing through the lower pipes is charged by the soil’s stable temperature. The heated (or cooled) water is pumped through the pipes installed in the root zone, where the heat (or cold) is discharged.
This process significantly increases yields, increases growing cycle planting options, improves quality, mitigates extreme heat and cold stress while significantly reducing energy consumption by stabilising and optimising the roots zone temperature.
About Dagan Agricultural Automation
Dagan is a leading provider of innovative technology related to most common agricultural disciplines such as greenhouses, tree nurseries, net houses, tunnels, pig farms, dairies, chicken coops and aquaculture.
During its 35 years of operation, Dagan has created over 1000 hectares of greenhouses, poultry houses and aqua cultural projects all over the world.
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.
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.