On 1st May 2019, Enevis Limited (ASX: ENE) released its LumiGrow Smart LED Grow Lights Presentation. ENE has been selected by the US grow lighting manufacturer LumiGrow, to aid in its marketing of LED lighting solutions across Australia, New Zealand and parts of Asia, these markets being the most attractive opportunities. Enevis believes that protected cropping and a controlled environment of horticulture has the potential to deliver great consistency and thereby yield better efficiencies. Enevis claims to be the only developer of smart LED grow lighting systems in North America, which offer crisp spectrum control to match the changing requirements of plants throughout their growth cycle. The protected cropping in Australia and New Zealand alone is valued at $1.56 billion per annum at the farm gate and accounts for almost 30% of the total vegetable growers in Australia.
LumiGrow, located in USA, is a horticultural LED lighting business, aims to provide smart lighting and cloud-based software solutions, inclusive of adjustable spectrum LEDs for large-scale glasshouses, research facilities and various horticultural applications. The group aims at deciphering the ways in which lighting efficiencies could be achieved in a controlled environment. The products of the company consist of lighting, sensors, software, mountings, financing and services.
LumiGrow’s Chief Executive Officer, Jay Albere, stated that the Australian and New Zealand markets are sensible next step in terms of the company’s growth, given their potential for the transition from traditional horticultural methods to smarter systems that place fewer demands on the natural environment. He believes that the relationship with Enevis would prove to be strong and productive as ENE is an experienced player, well capable of making ends meet with a vision to introduce the LumiGrow brand and technology to the market.
LumiGrow lighting is expected to be the next revolution in protected cropping to deliver further quantum increases in yield and the quality. Following would be the benefits of the same:
- There would be a reduced impact on the land and vastly smaller land use.
- The energy and water efficiencies would improve.
- There would be a better flavour and longer shelf life.
- There would be a higher quality produce and better returns for farmers.
- Better pest and weed control.
To proceed with the above, ENE has created a committed business under the brand name Enegrow, to focus specifically on the protected cropping and other horticultural markets. The new business unit would hence create further efficiencies with three discrete business units. It would use an already established operating platform with a proficient management team, business networks and the ability to offer fully finance solutions to help in the market transition.
Earlier this year in February, as part of the H1 FY19 publication, ENE announced that its sales revenue increased by 55.8% during the half to $19.91 million when compared with $12.78 million in the prior corresponding period. The EBITDA was $516,560 for six months till 31 December 2018. However, for the previous corresponding period the company reported an EBITDA loss of $447,546, representing a $964,106 turnaround in total.
Share price information:
At market close on 1st May 2019, the stock of ENE was trading at a price of $0.230, with a market cap of $15.32 million.
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