Agricultural technology company, Roots Sustainable Agricultural Technologies Ltd (ASX: ROO) has sold its first Root Zone Temperature Optimisation (RZTO) heating and cooling system in America to Tim Blake of Laytonville, California. This sale indicates the potential of the company’s RZTO technology within the lucrative cannabis sector. The company expect this to be the first of many sales with key producers in the region.
The sale is valued at A$49,500 (US$35,000) and it involves Roots installing its proprietary RZTO cooling and heating technology at Blake’s property in Mendocino County, housing the cultivation farm called Little Hawk Collective, Inc.
As per the company’s announcement, this sale is a result of ROOTS' recent Technology Showcase in North America and builds on the successful RZTO heating results on cannabis in an open field in Washington State, where average dried un-trimmed bud weight increased by 60 to 283% despite challenging autumn growing conditions of heavy frosts and temperatures below zero degrees.
While commenting on the Sale, Roots' CEO, Dr. Sharon Devir told that Roots is having a unique offering in the American cannabis market with the only known and successfully tested open field Root zone heating and cooling technology. The company’s RZTO technology enables cannabis producers to maximise crop production, quality and profit and supplies security. In greenhouse setups, it also offers significant energy consumption reduction.
While noting the importance of North America’s cannabis market, Dr. Sharon Devir told that this market has developed rapidly in recent years. 32 US states now allow cannabis for medical use, 16 for Cannabidiol (CBD) and 11 states allow recreational use. The market size of the US sector has increased 30% in 2018 to US$12 bn with 10,000 active business licences across cultivation, extraction and manufacturing, retail, distribution and testing. It is an evolving and competitive market where increased supply is driving the adoption of sustainable agtech solutions to reduce capital outlays and ongoing operational expenses.
The North American cannabis market is offering significant sales opportunities for its root zone heating and cooling technology. The Little Hawk Collective farm on Tim Blake’s property in the Emerald Triangle was one of the producers the company visited on the recent technology showcase.
Now, let’s have a glance at the company’s stock performance and the return it has posted over the past few months. The stock traded at a price of $0.089, up by 2.299% during the day’s trade with a market capitalisation of ~$5.71 million as on 22 March 2019. The counter opened the day at $0.092 and reached the day’s high of $0.095 and touched a day’s low of $0.089 with a daily volume of ~ 222,283. The stock has provided a year till date return of -18.00% & also posted returns of -71.72%, -12.77% & -2.38% over the past six months, three & one-months period respectively. It had a 52-week high price of $0.470 and touched 52 weeks low of $0.070, with an average volume of ~134,240.
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