Roto-Gro International wins $2.25M order for cannabis growing system
The fully-automated Roto-Gro rotary hydroponic system (a method of growing plants without soil) can be used to produce high-quality medical cannabis at a competitive cost.
Roto-Gro’s shares were last trading 25.4% higher intra-day on Thursday, at $0.37.
Importantly, the new order with EuroAg will generate a minimum revenue of $2.25 million.
The agreement provides for EuroAg to order 240 units of the Roto-Gro 420B and/or 420C models, with the agreement renewable annually.
The Roto-Gro’s 420B Model is a complete rotary hydroponic vertical farming system.
The 420C has the same components as the 420B, with the addition of Roto-Gro’s proprietary software system that monitors various elements of the plant growth cycle.
The Roto-Gro System was designed and manufactured in Canada in late 2006 and has undergone continuous improvement since that date.
Between 2007 and 2012, about 600 units have been sold worldwide by Canadian distributor NutriLife Products.
Roto-Gro International was admitted to the ASX last month and has become the latest player to join the list of cannabis based companies on the ASX.
Roto-Gro is capitalising on the immediate opportunity in the rapidly expanding lawful medical cannabis market, with a focus on North America, Europe and Australia.
Australia legalised medical cannabis on 1 November 2016.
The new market in Australia is a significant opportunity for peripheral industries, specifically those that help grow, extract and distribute cannabis products.