- Roots Sustainable Agricultural Technologies (ROO) signs a deal with hydroponics and general agricultural equipment supplier GroPro Hydro
- GroPro will sell, install and provide logistical services for Roots’ Root Zone Temperature Optimisation (RZTO) technology in the US state of Oklahoma
- The company says Oklahoma has a large addressable opportunity as it boasts an “extremely lucrative” medicinal cannabis market ideally suited for the RZTO tech
- The pair will establish a logistics hub that will be used to for installation services and will serve as a post-sale centre for the RZTO technology customer base in the US
- ROO shares have ended the day 25 per cent in the green at 0.5 cents each
Roots Sustainable Agricultural Technologies (ROO) has signed a deal with hydroponics and general agricultural equipment supplier GroPro Hydro.
Under this non-exclusive deal, GroPro will market, sell, install and provide logistical and post-sale services for the Root Zone Temperature Optimisation (RZTO) technology in Oklahoma, USA.
The RZTO technology optimises plant physiology for increased growth, productivity and quality by stabilising the plant’s root zone temperature.
According to Roots, Oklahoma is a large addressable market opportunity as it boasts an “extremely lucrative” medicinal cannabis market which is amongst the largest in the US. The state’s climate is also ideally suited for the deployment of the company’s tech.
“We are very excited to have signed this agreement with GroPro as we view Oklahoma as an exciting new and emerging market equal to the agricultural market in California,” Roots Executive Chairman and CEO Boaz Wachtel said.
GroPro has significant experience supplying hydroponic and general agricultural equipment, serving many of Oklahoma’s medical cannabis grow operations to ensure the highest quality results and make sure each customer is pleased with the outcome.
Roots received a commitment from GroPro to establish a logistics hub for its US operations. The hub will be used to provide installation services and serve as a post-sale centre for Roots’ RZTO technology customer base in the US.
Once GoPro achieves at least US$200,000 (A$278,541) worth of aggregate sales in the first six months and reaches additional milestones as defined by the deal, it will secure exclusivity in the region as Roots’ sole marketer, seller and installer.
Roots will pay GroPro an industry standard commission on sales alongside other performance payments.
ROO shares ended the day 25 per cent in the green to trade at 0.5 cents each.