Verity Greens set to triple its order of Roto-Gro’s rotational garden systems
Food & Agriculture
Food & Agriculture
In August, Canadian vertical farming player Verity Greens signed a binding $10 million technology licence to purchase 624 Roto-Gro Model 710 rotational garden systems – and now they look set to triple the deal.
The company announced today that it had executed an amending agreement with Verity Greens, who are considering increasing the prospective purchase order to 1872 rotational garden systems.
Roto-Gro (ASX:RGI) CEO Michael Di Tommaso said the company remains committed to its venture with Verity Greens given the potentially lucrative nature of this proposed transaction.
“Verity Greens is an important ‘partner’ for Roto-Gro, spearheading the company’s indoor vertical farming for perishable foods technology introduction globally, with particular focus in North America,” he said.
“The amendment to the existing agreement facilitates Roto-Gro’s position as Verity Greens’ technology partner in the space, which we anticipate will come to fruition in 2022.”
Roto-Gro is confident that the Verity Greens collaboration gives it access to the indoor vertical farming perishable food market as it simultaneously continues to develop its market presence in the global cannabis cultivation market.
Verity Greens told Roto-Gro that it has made significant headway in establishing the footprint necessary to penetrate and become a market leader in the global indoor vertical farming space.
It is currently in discussions with three of North America’s largest wholesale perishable food suppliers – which is why it revised its strategy to pursue a full- scale commercial perishable food cultivation facility using Roto-Gro’s rotational garden systems.
Essentially, the systems provide optimised yields per square metre and lower operating costs when compared to other indoor vertical farming technologies, and are supported by proprietary Enterprise Edition iGrow software, nutrient management system, automation technologies.
Plus, Verity Greens says it is committed to building facilities globally with Roto-Gro’s patented and proprietary technology, which will generate significant revenue for Roto-Gro through increased technology sales and annual licensing fees.
The amended agreement has now extended the deadline to execute a definitive agreement from December 31, 2021, to December 31, 2022.
This article was developed in collaboration with Roto-Gro International Limited, a Stockhead advertiser at the time of publishing.
This article does not constitute financial product advice. You should consider obtaining independent advice before making any financial decisions.