Roto-Gro International Ltd (ASX:RGI) has entered into an agreement with Freshero Pty Ltd pertaining to a joint venture to drive the sales of its rotational hydroponic garden systems and services.
Freshero is an aspiring organic fresh produce grower with long-standing relationships across the wholesale, retail and food service space in Australasia and Southeast Asia.
Led by its chief executive officer, Tony Mahoney, Freshero is in the process of establishing urban farming growing facilities and distribution centres for fresh organic produce grown near large urban centres.
The heads of agreement and the future joint venture agreements will leverage RotoGro’s proprietary rotational hydroponic garden systems, crop management fertigation hardware and software systems as part of Freshero’s urban vertical farming offering.
The Roto-Gro 420 unit
RotoGro will supply the capital equipment, software and management time at agreed rates, pursuant to a joint venture agreement and, in return, Freshero will commit to exclusive long-term service agreements with RotoGro for the installation of new indoor vertical farming facilities and ongoing operational management and maintenance.
The proposed price to be paid for indoor vertical farming facilities and subject to refinement during the design phase is anticipated to be between C$1.05 million and C$1.5 million (depending upon the size and configuration of the units).
RotoGro managing director Michael Carli said: “The company has identified organic produce as a significant untapped market opportunity providing exposure to further sales revenue.
“RotoGro can leverage its proprietary growing and crop management systems, in partnership with Freshero, to take advantage of a prime opportunity to revolutionise the agriculture industry by providing high quality organic fresh produce in a controlled environment, grown in close proximity to major retail distribution centres.”