- Roots Sustainable Agricultural Technologies (ROO) has signed a non-binding and non-exclusive letter of intent (LOI) with Humboldt CCTV
- The LOI will see the smart technology provider market, sell and distribute the root zone heat exchange device kits in Northern California
- These kits consist of Roots’ heat exchange probe and its Root Zone Temperature Optimisation (RZTO) technology
- The heat exchange probe is inserted into the tops of plant pots and grow bags to simplify the working procurers associated with the RZTO technology
- The RZTO technology stabilises the plant’s root temperature through a closed-loop pipe system which leads to increased growth and productivity
- While this LOI is only focused on California, Roots will be aiming to expand this offering to the rest of the States
- Roots is up an even four per cent and shares are trading for 2.6 cents each just before market close
Roots Sustainable Agricultural Technologies (ROO) has signed a non-binding and non-exclusive letter of intent (LOI) with Humboldt CCTV.
The LOI will see the smart technology provider market, sell and distribute the root zone heat exchange device kits in Northern California.
These kits consist of Roots’ heat exchange probe and its Root Zone Temperature Optimisation (RZTO) technology.
Roots’ heat exchange probe is inserted into the tops of plant pots and grow bags to simplify the working procurers of farmers and lower the installation costs associated with the RZTO technology.
RZTO optimises plant physiology for increased growth, productivity and quality by stabilising the plant’s root temperature.
A closed-loop system of pipes is installed with the lower part installed where the soil temperature is stable and not affected by the weather while the upper part is installed in the crop’s root zone just below the surface.
Water flowing through the lower pipes is charged by the soil’s stable temperature and the water (either hot or cold) is pumped through the upper pipes and released.
Water can be heated during winter and cooled during summer by up to 10 degrees celsius either way.
Under the LOI, Roots will receive licensing fees for technology usage for each system and a fixed price per part bought for installation by Humboldt.
The Lake, Mendocino and Humboldt counties will be initially targeted but the potential exists to expand into other counties and the rest of the U.S.
Roots believe this agreement will accelerate the uptake of its solutions throughout the States.
“This agreement is an important milestone for Roots and the first step in creating a permanent beachhead for our technology in North America,” Chairman and CEO Boaz Wachtel said.
“California represents a huge agricultural sector and importantly, a rapidly growing cannabis market. Roots have extensive experience in providing solutions to growers that provide higher yields, shorter growing cycles and production security so we have no doubt our products will be well received,” Boaz said.
“This agreement is a validation of the group’s confidence in the near term potential for RZTO in North America. Further, partnering with an established distributor in the USA will allow us to build our international footprint and deliver another competitive advantage at a time of restricted travel,” he added.
Roots is up an even four per cent and shares are trading for 2.6 cents each at 4:05 pm AEST.