Roots makes another Asian sale, eyes expansion across untapped Latin American market
Food & Agriculture
Food & Agriculture
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Roots Sustainable Agricultural Technologies has continued its international expansion – with another ‘Super Mini’ RZTO sale into Asia and the completion of two new installations.
The company made its sale to Green Tech in Azerbaijan – the first sale into the central Asian nation of over 10 million – with a significant agricultural market next door in Russia.
Green Tech LLC is a fruit and vegetable producer and will purchase a ‘Super Mini’ RZTO system for a proof of concept on their main crop producing areas – which includes tomatoes and cucumbers.
Following a successful period of one or two growth cycles, Roots (ASX:ROO) anticipates the POC will lead to additional larger commercial orders.
“These initial POC sales are expected to lead to much larger commercial sales as they continue to provide visibility for our products and act as a reference point for growers and farmers to understand the benefits of our technology,” executive chairman and CEO Boaz Wachtel said.
Plus, the company has successfully completed a remote installation of a ‘Super Mini’ system for Cherry Irrigation SA at the Cheeba Africa, Cheeba Cannabis Academy.
The system is expected to demonstrate the advantages of the tech at the plant – which is the heart of South Africa’s medical Cannabis region.
Roots has also installed a system in Almeria, Spain for Criado Y Lopez, a manufacturing and distribution company specialising in agro-textiles and plastic distributors and accessories for the agricultural sector.
The company is in El Ejido, Almeria, the region is a well-known agricultural hotspot hosting the highest density per hectare (>35,000) of protected agriculture in the world.
Added to these deals, the company has also entered a binding agreement with ScaleUp Israel to accelerate its growth initiatives in the Latin America region.
ScaleUp will provide Roots with an introduction to dealers and investors in the region and will receive a monthly collaboration payment as well as an additional success fee for introduction to distributors who invest an agreed upon minimum amount.
The agreement has an initial three-month term which can be extended by mutual agreement by both parties to six months.
As one of the world’s largest farming powerhouses, Latin America is a significant untapped market for Roots.
The region hosts some of the most dynamic farming systems worldwide having successfully fed a fast-growing population, facilitated economic development, generated substantial exports and helped drive down global hunger and poverty.
But many of the same systems are inefficient and environmentally unsustainable – and that’s where Root’s sustainable agricultural technology comes in.
This article does not constitute financial product advice. You should consider obtaining independent advice before making any financial decisions.