Canniberia gets pre-approval for Cannabis cultivation, informs RotoGro (ASX:RGI)

Highlights

  • RotoGro’s subsidiary has infomed that Canniberia LDA has received a pre-approval for its cannabis cultivation licence from Infarmed I.P.
  • The Canniberia project will be RotoGro’s first in the thriving European space.
  • The deal includes a technology purchase order for 144 RotoGro Rotational Garden Systems along with one Plant Nutrient Management System.

Australian agricultural technology Company, Roto-Gro International Limited’s (ASX:RGI) wholly-owned subsidiary, Roto-Gro World Wide Inc., announced on Monday that Canniberia LDA has already received a pre-approval for its cannabis cultivation license from Infarmed I.P.

Infarmed I.P is a government agency that is accountable to Portugal’s Health Ministry. It is responsible for evaluating, authorising, regulating, and controlling human medicines and healthcare products in Portugal.

About Canniberia

Canniberia is a large-scale European cultivator of high-grade medicinal cannabis products. At present, it is constructing a huge cannabis cultivation facility which will feature 144 RotoGro Gardens and one Fertigation System. This facility will be supported by RotoGro’s iGrow software system which will automate the important aspects across the cultivation area in the facility.

The Agreement

The Purchase and Sale Agreement between the Company and Canniberia features a technology purchase order for 144 RotoGro Rotational Garden Systems and one RotoGro Plant Nutrient Management System. The RotoGro Gardens will be delivered in two separate orders worth CA$1.9 million. The first shipment is comprised of 72 RotoGro Gardens and one RotoGro Fertigation System. The second order features a further 72 RotoGro Gardens to be delivered in next nine months.

According to the Agreement, Canniberia is supposed to pay RotoGro a cash deposit of 50% of the purchase amount for the First Order within five business days after submitting its purchase order. However, due to unavoidable travel restrictions and delays made by Portuguese regulatory, the Company has extended the purchase order requirement till 30 September 2021.

Meanwhile, the RGI stock was spotted trading 3.225% higher at AU$0.032 per share on the ASX at 12:30 PM AEST.

Bottomline:

The pre-license of Canniberia for their cannabis cultivation is a crucial step towards this venture. The Canniberia project will be RotoGro’s first in the European market. Thus, RotoGro has achieved a major milestone that will be taking the Company a step closer to marking its global presence.

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