Roto-Gro Confirmed Commitments From Sophisticated Investors For Oversubscribed ~$3.6 Mn Placement

  • Apr 24, 2019 AEST
  • Team Kalkine
Roto-Gro Confirmed Commitments From Sophisticated Investors For Oversubscribed ~$3.6 Mn Placement

Roto-Gro International Limited (ASX: RGI) is a global operations company with a focus on the cultivation of cannabis legally. It has patents-pending technology along with exclusive licenses for legal medicinal and recreational cannabis markets. As of now, the group focuses on expanding its business through synergistic industry opportunities; increasing strategic partnerships and complementary acquisitions.

The company today, on 24th April 2019, announced that it has received firm commitments from the institutional and sophisticated investors for an oversubscribed $3,581,552 placement.

The much-demanded placement is jointly managed by Patersons Securities Limited and Baker Young Stockbrokers, which will enable the company to speed up the expansion of the research and development facility in Caledon, Ontario, Canada.

The facility in Canada will cater for three additional grow rooms in support of the company’s perishable food joint ventures as well as complete the engineering design of the automated harvesting for the company’s perishable food hydroponic gardens. Additionally, the company will be lowering production costs, strengthen its sales and management teams along with the expansion of the production inventory.

The company will issue 16,658,380 new fully paid ordinary shares at an issue price of $0.215 per share in accordance with the shareholder approval for the issue of 15,000,000 shares at the most recent Annual General Meeting and a further 1,658,380 shares without shareholder approval as per the company's Listing Rule; however, the settlement is expected to occur on or about 1st May 2019.

The Managing Director of the company, Michael Carli, said that the level of interest and support from new and existing investors is an evidence of the unique opportunity that the company presents in changing the future of agriculture.

The company has an objective to become leading lawful cannabis and perishable food grower. It has a unique patents-pending technology and proprietary growing management software. The proven yield increases, and lower operational costs provide maximum profits and socially responsible returns to the investors of the company.

The company in the recent past has announced that Roto-Gro World Wide (Canada) Inc., a wholly-owned subsidiary of Roto-Gro International Limited had secured a $600,000 order from Frozen Penguin Medical Industries Inc., which has applied to Health Canada to cultivate lawful cannabis. The order was possible because of RotoGro’s extensive consultation and direct customer support to meet Frozen Penguins’ specific facility requirements, which have proven to be successful.

On the price-performance front, the stock of Roto-Gro International Limited is trading at $0.225, down by ~6.25% during the day’s trade (on 24 April 2019, AEST 02:00 PM). The stock has generated a negative YTD return of 27.27% and returns of 45.45%, 31.43% and 15.79% over the past six months, three months and one-month period, respectively. Its 52-week high price stands at $0.555, and 52-week low price stands at $0.205, with an average trading volume of 221,376. Earlier, the stock was suspended from trading on ASX before the announcement of material capital raising.


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