Agriculture: Enevis gets into LED-powered cropping just as cannabis growers switch on
Food & Agriculture
Food & Agriculture
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Electrical and lighting company Enevis (ASX: ENE) is getting into the market for efficient LED lighting.
The company announced this morning that it’s signed an Australian distribution agreement with US-based LED manufacturer LumiGrow.
Shares in Enevis were up 4.35 per cent at 24 cents this morning, having traded in a narrow range over the past 12 months.
Nevis has been around since 1856, providing various products and services tracking Australia’s industrial development.
Now listed on the ASX, the company offers various software, hardware and installation support services across different sectors.
The company says its distribution deal with LumiGrow will provide a platform to enter the “protected cropping markets and other emerging horticultural markets in Australia, New Zealand and parts of Asia”.
It says the protected cropping market in Australia and New Zealand is value at more than $1.5 billion, and accounts for around 30 per cent of regional vegetable production.
In addition, LED (light-emitting diode) technology is becoming increasingly popular in the cultivation of legalised marijuana crops.
Stockhead has reached out to Peter Jinks, Enevis’ chairman and managing director, for additional comments around the strategic direction of the arrangement.
LumiGrow has a based of around 150 customers in the US for its LED technology, with 20,000 hardware fixtures providing billions of data points which help to optimise crop production.
As part of the company’s market announcement this morning, Jinks said LumiGrow offered a “disruptive” technology, and the distribution deal was part of a strategy to diversify Enevis’ product offering.
“LumiGrow’s smart LED grow lights can be installed in new facilities or retrofitted to existing glasshouses, making it an ideal tool for growers wanting to improve their crops and increase their productivity,” Jinks said.
Shares in New Zealand King Salmon (ASX: NZK) slumped by more than 20 per cent this morning after the company provided an update on its earnings guidance. The company said summer conditions in New Zealand had been “challenging”, due to warm water temperatures which continued into April and contributed to high fish mortality rates.
As a result, the company said full-year EBITDA for FY19 will be at the lower end of its forecast range between $25m–$28.5m. Shares in NZK were down 22.46 per cent at $2.21.
And Australian Dairy Nutritionals Group (ASX:AHF) is up 3.33 per cent to 15.5 cents after releasing its quarterly 4C filing just after market close yesterday. The company, which recently announced plans to pivot into the infant formula space, said sales of its dairy and yoghurt products both increased in the March quarter.