Special Report: RotoGro International has put a stake in the ground as a major cannabis cultivator, with recent tests revealing its unique growing system is capable of producing at least 60 to 85 per cent more yield in the same amount of space as that of flat deck rolling tables.
The company (ASX:RGI) issued an update on ongoing trials involving its stackable hydroponic rotary garden technology at its research and development facility in Ontario, Canada.
It has been testing its patented technology, which rotates seedlings around a central lamp to optimise electricity, water, food and floor space, against traditional flatdeck growing systems, as well as the impact of different lighting and rotation speeds on crop yields.
And so far, the results have been more than promising.
Tests have shown the RotoGro system significantly increases cannabis yields and consistently outperforms traditional ‘flat deck systems’ occupying the same floor space.
In fact, a single RotoGro unit consistently yields 7–9 lbs (3-4kg) of dry final flower product per harvest (strain dependant) compared to 2.8lb (1.3kg) with a flatdeck systems covering the same footprint – about a 60 per cent increase.
When the units are stacked two and three units high, the average yield doubled and tripled, to 14 to 18 lbs and 21 to 27 lbs, respectively, while still only using the same amount of floor space of 3m2.
Averages were compared against the results of 16 cannabis growers using flat deck systems as studied by BOTEC Analysis Corporation in conjunction with Carnegie Mellon University and TRiQ, Inc. (as published by the Washington State Liquor and Cannabis Board).
On the up and up
RotoGro is uniquely positioned in the cannabis space as it now has the legal ability to produce its own cannabis products in Canada’s recreational cannabis market.
The company is buying cannabis extracts and oils processor Supra THC Services and its Health Canada issued Dealers Licence for $C11m ($11.9m) for 80 per cent stock (at a share price of $0.52 per share) and 20% Cash staged over four milestones.
Coupled with its patented technology and supporting agricultural services, RotoGro has the advantage over other ASX-listed pot stocks that may face the challenge of clinical trials and Therapeutic Goods Administration requirements to get a product to market given their focus on the recreational legal Canadian market.
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It’s not just for cannabis
RotoGro is also conducting similar tests with perishable foods alongside organic fresh producer grower Freshero.
Trials with Freshero commenced during this quarter for the cultivation of leafy greens, herbs, cherry tomatoes, cucumbers, capsicums and strawberries.
RotoGro says so far, the results regarding crop density, yield and cycle times have been “equally surprising” for perishable foods as for cannabis.
Its managing director Michael Carli says the research is providing a strong foundation to support a wide range of client needs.
“The future is very exciting as we continually improve and refine our technology in conjunction with our global data control centre to optimise yields and maximise cost efficiencies.”
RotoGro is currently conducting economic assessments for a range of crops suitable to the Australian market and fine-tuning plans for Freshero’s own research grow room in Australia.
It plans to commence design of the facility early next year.
RotoGro International is a Stockhead advertiser.