Roots’ management team geared for cannabis focus
Roots Sustainable Agricultural Technologies Limited (ASX:ROO) has advised that Boaz Wachtel has been appointed chief executive and executive chairman, effective immediately, with Sharon Devir assuming the role of executive director and business development.
Wachtel is a pioneer and one of the global leaders of the cannabis industry who co-founded two ASX-listed cannabis-related companies during the past five years.
The change in leadership roles has been planned for some time and coincides with Roots placing much greater emphasis and focus on pursuing opportunities in the global cannabis sector, a market that presents considerable upside and more near-term revenue opportunities for the company.
The company’s success in this area was evidenced as recently as December when it signed a collaboration agreement with Tel Aviv Stock Exchange Listed medicinal cannabis producer, Seach Medical Group Ltd (TASE:SEMG) to research the effect of Root’s patented Root Zone Temperature Optimization (RTZO) technology on cannabis crops.
The company’s upgraded cooling system was used to stabilise the roots of cannabis plants at an optimal temperature of 21 degrees Celsius (70°F), despite ambient air temperatures within the greenhouse reaching 30°C (85°F) and outside temperatures topping 43°C (120°F).
Increases of 30 per cent and 118 per cent were achieved during the US summer on two cannabis strains of 400 and 200 cooled plants respectively within a climate-controlled greenhouse utilising wet mattresses and fans.
These results follow an initial sale to premium cannabis producer Canndescent in May with the installation completed in early June 2019.
Seach one of Israel’s prominent medical cannabis company’s
Seach is one of Israel’s preeminent medicinal cannabis companies that has been growing top quality medicinal cannabis since 2008 and supplying various forms to patients with a medical cannabis licence issued by the Israeli Ministry of Health.
Not surprisingly, news of the collaboration with Seach resulted in a substantial surge in Roots’ share price, and Monday’s high of 5 cents, which also represents a positive response to the aforementioned management changes, implies an increase of 85% in less than a month.
Wachtel was previously chief executive and chairman of one of the first ASX-listed cannabis companies.
He was also partly responsible for formulating the legalisation for medical cannabis in Israel and he is involved in various other global medical cannabis initiatives.
Wachtel is the inventor of Roots’ RTZO technology which is the core technology of the company and he has been intimately and actively involved in Roots for over a decade.
More opportunities pending
Commenting on the management changes, Wachtel said, “The RTZO technology has outstanding potential in the agricultural sector.
‘’As shareholders are aware, Roots has been actively pursuing opportunities for the deployment of RTZO in the cannabis sector and it is the market that presents the most upside for us.
‘’It makes good commercial sense that we therefore strengthen our efforts here, and I will be drawing on my contacts, network and expertise in the sector to do so.
Wachtel confirmed that more opportunities are pending in saying, “The Board is very grateful to Sharon for his ongoing commitment to the company.
He is a co-founder of Roots and been a successful and committed chairman and chief executive for the past seven years and we look forward to him playing a key role in Roots’ future at Board level and operationally.”
Consequently, it would appear there are catalysts on the horizon that have the potential to maintain the group’s recent share price momentum.