The agricultural technology company, Roots Sustainable Agricultural Technologies Ltd (ASX: ROO) on 24 April 2019 announced that its Root Zone Temperature Optimization (RZTO) heating technology had boosted the yield of Yardlong Beans by 40% more than the unheated control crops.
RZTO technology aids in optimizing the plant physiology which results in rise of the plant’s growth, productivity, as well as the quality by stabilizing the zone temperature of the roots of the plant.
Yardlong Beans falls under the category of staple crop and is found in most of the Asian, equatorial African and South American cuisines.
The above-mentioned result was provided by the grower of Southern Israel, who purchased the RZTO system of the company. During the Israeli winter in the period between November 2018 to March 2019, these growers had conducted the growing of plants in hoop houses. Also, Israel is a dry region with a severe temperature variation between day and night.
The Yardlong Beans plant roots were heated to around 20 degrees at night, using the hybrid coil-based ground source heat exchanger and heat pump version of the Roots RZTO system. Through the Roots RZTO system, despite air temperatures in the hoop house often dropping to 5 ° the plants remained stabilized. On the other hand, the roots of the control plantings varied from 13 to 18 °.
Yardlong Beans although a traditionally warm climate crop, continued to grow throughout the winter months by the utilization of the RZTO technology. On the other hand, the control crop which could not reap the benefit of the RZTO technology stopped growing from December onwards.
ROO is the only company which owns two-in-one root zone heating, as well as the cooling technology. On 4 April 2019, the company had announced that its RZTO technology had obtained the second sale of RZTO heating and cooling system, valued at A$42,300 to an independent cannabis producer Ivo Lopez of Mendocino Natural Farms located in the Northern California region.
Also, on 22 March 2019, the company sold its first RZTO technology to Tim Blake of Laytonville, California, who is the leader in the cannabis industry in the Emerald Triangle and beyond.
On 15 March 2019, the company completed the third sale and installation agreement with Dagan Agriculture Automation for a state-of-the-art greenhouse project, which involved the installation of the RZTO technology in 2/3rds of a one-hectare greenhouse in the Guiyang district of Guizhou.
Let's have a look at the company’s performance in 1H FY2019. During the period, there was an increase in the revenue of the company from ordinary activities by 100% to US$0.305 million. The loss during the period declined by 41% to US$2.884 million.
The balance sheet of the company reported a decline in its total shareholders’ equity from $3.002 million to $0.120 million. By the end of the period, the company had net cash and cash equivalent worth $0.593 million.
In the previous six months, the shares of ROO generated a negative return of 72.36%. The shares of ROO at the end of the trading session was at a price of A$0.076 (as on 24 April 2019), up by 11.765% as compared to its previous day’s closing price. ROO holds a market capitalization of A$4.61 million with approximately 67.72 million outstanding shares.
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