Israeli agriculture technology company Roots Sustainable Agricultural Technologies Limited says it has launched a marketing and sales agreement with one of Israel’s largest retail and wholesale agricultural chains.

Roots (ASX:ROO) says the deal with Amir Marketing and Investing in Agriculture Ltd includes a “buy now, pay later” component for farmers that will expedite uptake of its root zone temperature optimization (RZTO) system.

Through a closed-loop system of pipes that exchanges temperature with underground soil, the RZTO system is able to heat an agricultural crop’s root zone in the winter and cool it during the summer. The only energy consumption for the system is for the water circulation pump, Roots says.

A California-based commercial cannabis the company signed up last year reported that the system was able to double the yield of cannabis dry flower.

Under the new agreement, Amir will exclusively promote the RTZO system in its stores under a flexible payment structure.

Roots said a peonies grower in North Israel had already acquired a $14,300 RZTO system under the flexible payment terms.

“This strategic agreement is a significant milestone for the Company as it provides a major sales channel into the Israeli market, as well as visibility for our solutions in over 23 retail stores throughout the country at little expense,” Roots executive chairman and CEO Boaz Wachtel said.

“The payment agreement we have struck with Amir will make our technology much more accessible to farmers and other growers throughout Israel as the payment terms align well with farmers’ receivable terms.”

 

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