Food: Roto-Gro gives shareholders a double hit of partnership news and shares take off
Food & Agriculture
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Ag-tech Roto-Gro (ASX:RGI) gave its shareholders a double treat of exciting news this morning.
The company makes farming systems that are circularly shaped rather than flat, claiming to achieve greater yields with the same footprint.
Today it told shareholders it expects to form a joint venture with organic produce grower Sydney-based Freshero by the end of this year.
If all goes to plan the companies will construct a facility with Freshero’s products and Roto-Gro’s technology. Completion is slated for the June quarter of 2020. The produce will be sold in Australia as well as in global markets.
Roto-Gro also announced late yesterday that it signed a term sheet with a Thailand-based company to develop a cannabis plant at a Thai university. This will involve using Roto-Gro’s vertical farming systems.
Cannabis is not yet legal in Thailand but health minister Autin Charnivirakul foreshadowed legalisation earlier this month.
Roto-Gro shares climbed 19 per cent this morning.
Read More:
Weed Week: In Thailand you’ll be able to grow cannabis ‘like any other herb’
In other ASX food and agriculture news today:
Food Revolution Group (ASX:FOD) expanded its juice range and won approval to sell the range at Coles. The new brands follow the acquisition of Original Juice Company in September and include vegetable juice blends and quenchers. The company will begin production in January 2020 once an upgrade to its Melbourne-based plant is complete.
Remember that cod producer that Heston Blumenthal backed? The company, Murray Cod (ASX:MCA), told shareholders at its AGM today Blumenthal and his team were currently working on recipes using its cod. So from 2020, you can expect to see them in the celebrity chef’s Fat Duck restaurants.
Clean Seas Seafood (ASX:CSS) told shareholders it was continuing mediation with its former feed supplier Gibsons. It alleges Gibsons supplied defective feeds to the company between 2008 and 2012. Despite the pair going through mediation, a trial remains listed to begin on February 24.
