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- Roots Sustainable Agricultural Technologies (ROO) signs a Letter of Intent (LOI) with irrigation system specialist Cherry Irrigation SA
- Cherry specialises in the design and installation of irrigation, automation and fertigation systems in the Southern African region
- Under the LOI, Roots will market, sell and install its Root Zone Temperature Optimisation (RZTO) and Heat Exchange Probe (HEP) technologies in South Africa and Namibia
- This partnership marks Roots’ first entry into Africa and gives the company a significant opportunity for entry into South Africa’s blueberry and cannabis markets
- Shares in Roots are up 12.5 per cent on the market and are trading at 0.9 cents
Roots Sustainable Agricultural Technologies (ROO) has signed a Letter of Intent (LOI) with irrigation system specialist Cherry Irrigation SA.
Cherry specialises in the design and installation of irrigation, automation and fertigation systems in the Southern African region.
The company partners with growers and farmers to maximise crop yields through strategic and sustainable planning.
Under the LOI, Roots will market, sell and install its Root Zone Temperature Optimisation (RZTO) and Heat Exchange Probe (HEP) technologies in South Africa and Namibia.
The LOI is for a three-year term – conditioned on an average sale of no less than €1 million (A$1.56 million) for the three years.
Upon the installation of each system, Cherry will pay Roots a royalty rate, with the amount to be agreed upon in the definitive agreement anticipated early next year.
Four RTZO systems will be used as pilot installations over the coming months.
This partnership marks Roots’ first entry into Africa and gives the company a significant opportunity for entry into South Africa’s blueberry and cannabis markets.
Roots CEO Boaz Wachtel commented on the significance of the LOI.
“Securing our first LOI and sales into Africa is a major step for our company and highlights the applicability of our products to farmers and growers globally,” Mr Wachtel said.
“We expect our RZTO and HEP technologies to be well received, specifically in a region experiencing large growth in segments in which our product can considerably increase crop yield and crop quality.”
Shares in Roots were up 12.5 per cent on the market and were trading at 0.9 cents at 1:30 pm AEDT.
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