- Roots Sustainable Agricultural Technologies (ROO) has signed a letter of intent with Humboldt CCTV to target the Californian cannabis market
- As both companies combine their tech, a new solution will allow farmers — particularly in the cannabis sector — to wirelessly monitor soil temperature, moisture levels and weather to enhance their crops
- In January next year, the parties will test the integrated solution with a leading cannabis grower
- Additionally, Roots will invest US$100,000 (approximately A$132,000) into Humboldt for 10 per cent of its holdings
- Despite this positive news, Roots shares have dropped 3.45 per cent this morning and are trading at 2.8 cents per share
Roots Sustainable Agricultural Technologies (ROO) is teaming up with its existing partner, smart technology provider Humboldt CCTV.
The companies have signed a letter of intent (LOI) to fuse their technologies.
Under the agreement, Roots will integrate its main technology, Root Zone Temperature Optimisation (RZTO), and a heat exchange stub product into Humboldt’s smart agriculture solution.
The combined solution will allow farmers to wirelessly monitor soil temperature, moisture levels and the weather in different remote locations.
Over the next 45 days, after signing the LOI, the parties will test the integrated solution with a leading cannabis grower.
Humboldt is a family-owned business that specialises in smart agricultural technology and wireless connectivity solutions for farmers, particularly in the cannabis industry.
This announcement follows the previous deal, where Humboldt market, sells and distribute Roots’ heat exchange product.
Additionally, Roots will invest US$100,000 (approximately A$132,000) into Humboldt for 10 per cent of its holdings. Funds from this investment will be spent on the Californian cannabis market.
“The extension of our agreement with Humboldt coincides with major regulatory shifts in the cannabis sector, leaving Roots very well placed to capitalise on a number of near term opportunities,” Roots CEO Boaz Wachtel said.
“We are very confident that our new, integrated smart solution will be well received by cannabis growers in Northern California, as it will allow cultivators to remotely manage many labour-intensive aspects of the growing process,” he added.
California represents a large market opportunity for Roots, as it is the top agricultural state in the U.S.
Despite this positive news, Roots shares have dropped 3.45 per cent this morning and are trading at 2.8 cents per share at 11:31 am AEDT.