Roots Garners Third Sale from Dagan for the Greenhouse Project
Roots Sustainable Agricultural Technologies Ltd (ASX: ROO) is into the business of agricultural technology. The Company concentrates upon developing, producing, and commercialising precision agriculture technologies. These technologies aids in improving crop yields, as well as offers the sale of root zone heating and cooling systems. Roots Sustainable Agricultural Technologies serves customers in Israel and Spain.
The company, today on 15 March 2019, has declared that it has done a third sale and installation pact with Dagan Agricultural Automation.
Dagan Agricultural Automation is one of the foremost providers of innovative technology, related to most common agricultural disciplines include greenhouses, tree nurseries, net houses, tunnels, and open fields on the one hand; and animal breeding farms such as pig farms, dairies, chicken coops, and aquaculture.
The sale amounting to AUD 64,400 comprised of the installation of company’s proprietary Root Zone Temperature Optimisation (RZTO) technology. These installations are spread across 2/3rd of a one-hectare greenhouse in the Guiyang district. The company’s heating and cooling systems will be used to stabilise the root temperature of numerous vegetable crops inside the greenhouse, including tomatoes and lettuce.
RZTO by stabilising and optimising the root zone temperature with very little energy use, significantly increases yields, improves quality, mitigates extreme heat and cold stress and allows for off-season planting and growing.
It has been decided that the remaining 1/3rd of the greenhouse will be utilized as a control measure. This will allow the farmers to straightway equate the RZTO crop yield, quality and performance with the un-treated control-group crops. Under the agreement, the company will receive 70% of the sale payment upon shipment of equipment with the rest payable upon the completion of the installation. The installation will be overseen by the company’s technical team and is expected to be completed in May 2019. This installation represents the company’s third agricultural sale to Dagan and follows substantial orders of A$323,000 and A$278,000 respectively.
Dr Sharon Devir, CEO and co-founder, stated that the company continues to build impetus in the world’s largest agricultural market, securing its second RZTO installation order from Dagan this quarter. These developments highlight the strong point of the partnership with one of the world’s foremost ag-tech integrators.
This state-of-the-art pilot is expected to support the company’s China operations, enabling the management to demonstrate the benefits of its root zone heating and cooling technology in a sizable greenhouse alongside control crops. A successful pilot is expected to lead to a larger installation phase for this particular project and further sales activity in the future.
On the price-performance front, the stock has posted the YTD return of -25%. The company also has posted returns of -70.59%, -28.57% & -10.71% over the past six, three & one-month period respectively. At the time of writing (15 March 2019), the stock of the company was trading at a price of $0.080, up 6.667% during the day’s trade with a market capitalisation of ~$ 4.92 Mn. The stock opened the day at $ 0.080, which was also the day’s high and touched the day’s low of $ 0.079, with an average daily volume of ~ 132,800. It had a 52-week high price of $ 0.080, with an average volume of, 149,252 approximately.
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